By Jamie Martin
The U.S. Department of Agriculture has released new Farm Service Agency loan interest rates for January 2026. These updated rates are effective January 1, 2026, and are designed to provide affordable financing to agricultural producers across the country.
FSA loan programs help farmers secure funding for daily operations, land ownership, equipment purchases, storage facility construction, and recovery from natural disasters. These loans also support producers who need short-term cash flow assistance when market prices are low.
For January 2026, direct farm operating loans are available at an interest rate of 4.625 percent. Direct farm ownership loans are offered at 5.625 percent. Joint financing farm ownership loans are set at 3.625 percent, while down payment farm ownership loans are offered at a reduced rate of 1.625 percent. Emergency loans for actual losses carry an interest rate of 3.750 percent.
FSA also works with commercial lenders to provide guaranteed loans. These programs allow farmers to access financing through approved lenders while benefiting from federal support and flexible terms.
Commodity loans provide short-term financing to help farmers hold crops until market conditions improve. For January 2026, commodity loans with terms under one year are offered at 4.625 percent.
Farm storage facility loans support the construction and improvement of storage structures and handling equipment. Interest rates depend on loan length. Three-year loans are offered at 3.500 percent, five-year loans at 3.625 percent, seven-year loans at 3.875 percent, ten-year loans at 4.125 percent, and twelve-year loans at 4.250 percent. Sugar storage facility loans with fifteen-year terms are available at 4.500 percent.
Producers can access the USDA Loan Assistance Tool online to explore loan options and receive step-by-step guidance through the application process.
These programs continue to strengthen farm businesses by improving access to capital, supporting infrastructure development, and promoting long-term agricultural stability.
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