Interest rates on FSA loans expected to be flat in 2021

Interest rates on Farm Service Agency loans are expected to be flat this year.

FSA Administrator Zach Ducheneaux tells Brownfield lending rates are indexed to treasury note rates.

“So our operating loans are at the 5-year treasury note rate, plus 1 percent. And our farm ownership loans are indexed to the 25-year treasury note rate, plus 1 percent. So I think they’re going to track pretty even for the rest of the year.”

Interest rates on FSA farm operating loans have been running below 1.5 percent.

“And that’s really your cattle notes (which) is maybe a little bit confusing to call them a farm operating loan. But if you think about the financing you would need to operate your farm, not an operating line of credit.”

He says there are also FSA farm ownership loans that can be used to purchase or expand a farm or ranch.