Farm Service Agency Loans: Limits, Rates and How to Apply

Farm Service Agency loans are USDA farm loans for people who cannot get enough credit from a bank or the Farm Credit System on reasonable terms. As of October 1, 2026, FSA charges 5.375% on direct operating loans and 6.25% on direct farm ownership loans, and it lends up to $400,000 and $600,000 on those two products (FSA current loan interest rates). Below you will find every loan type with its limit and term, a rate chart, a payment calculator and the steps to apply.

This guide is written for farmers and ranchers in the United States. Loan rules change each fiscal year, so check the figures with your local FSA office before you sign anything. This page is general information, not financial or legal advice: talk to an FSA loan officer, your lender or a farm financial adviser about your own case.

What the Farm Service Agency does for farm credit

The Farm Service Agency (FSA) is part of the U.S. Department of Agriculture. It lends to farmers in two ways. With a direct loan, FSA makes and services the loan itself. With a guaranteed loan, a private lender makes the loan and FSA promises to cover part of any loss.

The American Farm Bureau Federation explains that FSA guarantees up to 90% of most guaranteed loans and up to 95% in certain cases (Farm Bureau analysis of USDA farm loan programs). That guarantee lowers the lender’s risk, which can help a borrower qualify.

FSA is not the biggest farm lender. A USDA Economic Research Service bulletin on farm debt from 2012 to 2021 names commercial banks, the Farm Credit System and FSA as the primary lenders of farm debt. In 2021 the Farm Credit System supplied almost half of farm real estate loans. FSA fills gaps: beginning farmers with little equity, farms recovering from disaster, and operations a bank will not fully finance.

▶ A walkthrough of the Farmonaut Agro Admin app for managing large farms, crop health and field tasks. · 7:27

Farm Service Agency loan types, limits and terms

The table lists the main FSA farm loans with their limits and terms. Limits come from FSA program pages and the FSA farm loan chart (November 2025). Rates are those effective October 1, 2026.

1. Direct operating loans

Best for: yearly costs such as seed, fertilizer, feed, livestock, fuel and equipment. FSA lends up to $400,000 directly, and repayment runs from one to seven years depending on the purpose (FSA farm operating loans). The rate was 5.375% on October 1, 2026.

2. Direct farm ownership loans

Best for: buying or enlarging a farm, putting up or improving buildings, and soil and water conservation work. FSA lends up to $600,000 with terms of up to 40 years (FSA farm ownership loans). The rate was 6.25% on October 1, 2026.

3. Joint financing

Best for: land purchases where a bank will fund part of the price. FSA covers up to 50% of the cost and another lender covers the rest. The FSA farm loan chart sets the rate at the direct ownership rate less 2%, with a 2.5% floor, when the other lender provides at least 50% of the loan. On October 1, 2026, FSA listed the joint financing rate as 4.25%.

4. Down payment loans

Best for: beginning farmers and ranchers buying their first farm. The buyer puts down at least 5%. FSA lends up to 45% of the purchase price or appraised value, the term is 20 years, and the rate is the direct ownership rate less 4%, with a 1.5% floor (FSA farm loan information chart). The chart also gives a dollar cap on the property value, which FSA updates, so ask your office for the current figure. The October 2026 rate was 2.25%.

5. Microloans

Best for: small, new, niche or urban farms that need modest sums with less paperwork. Microloans go up to $50,000 for operating and up to $50,000 for farm ownership (FSA microloans fact sheet). Microloans carry the same rates as the matching direct loans.

6. Guaranteed loans and EZ Guarantee

Best for: larger operations that bank with a commercial lender. FSA can guarantee operating, ownership and conservation loans up to $2,558,000, an amount adjusted each fiscal year for inflation (FSA guaranteed farm loans). The EZ Guarantee uses a simpler application for loans up to $100,000. Land contract guarantees go up to $500,000.

The lender sets the rate, but FSA caps it. For loans that are variable or fixed for under five years, the cap is the prior business day’s SOFR plus 6.75%. For loans fixed for five years or more, it is the five-year Treasury rate plus 5.5%.

7. Emergency loans

Best for: recovery after a declared natural disaster. Emergency loans can cover up to 100% of actual production or physical losses, to a limit of $500,000, according to the FSA chart. The rate on October 1, 2026 was 3.75%.

Current FSA loan interest rates

FSA sets direct loan rates each month. The chart shows the rates in effect on October 1, 2026. Down payment and joint financing loans are cheaper because their rates are set below the ownership rate.

Chart

FSA direct loan interest rates by program

Annual rate, %, effective October 1, 2026

How much FSA lends each year

According to the Farm Bureau’s review of USDA data, FSA obligated $6.74 billion across 27,792 farm loans in fiscal year 2025. That was up from $5.39 billion across 24,555 loans in fiscal year 2024. The average loan rose from about $220,000 to nearly $243,000.

Ownership lending took the largest share of dollars: $2.33 billion in direct ownership loans and $2.09 billion in guaranteed ownership loans. Operating loans led by count, with 14,170 direct and 2,291 guaranteed loans. Emergency loans grew from about $8.5 million to $26 million.

Beginning farmers received 15,552 loans worth $3.53 billion, about 56% of FSA loans and 52% of the dollars. Veteran farmers received 787 loans worth about $141 million. The Farm Bureau notes that these groups can overlap.

Chart

FSA farm loan dollars obligated, fiscal year 2025

$ billion; ‘All other loans’ is the total of $6.74 billion minus the two ownership lines

Who qualifies for Farm Service Agency loans

Each program has its own rules, but the core tests are similar. For a guaranteed loan, the FSA guaranteed loan program fact sheet says the applicant must be a U.S. citizen or legal resident alien. Direct loans are aimed at farmers who cannot get enough commercial credit at reasonable rates and terms.

Lenders and FSA staff will look at:

• Your farm experience, training or management background.
• Your credit history and any past debt problems.
• A farm plan that shows enough cash to cover the payment and family living costs.
• Collateral to secure the loan.
• The size of the farm, which should fit the family-farm rules for the program.

Beginning farmers and ranchers

FSA defines a beginning farmer as someone who has not operated a farm for more than 10 years, among other tests (FSA loans for beginning farmers and ranchers). FSA sets aside part of its direct and guaranteed loan funds for this group, and down payment loans are reserved for them.

Direct or guaranteed: how to choose

The choice depends on how much you need, whether a bank already knows you, and how much paperwork you can handle.

• Pick a direct loan if banks have turned you down or offered too little, and your need fits under $400,000 for operating or $600,000 for ownership. FSA sets the rate and services the loan.
• Pick a guaranteed loan if you have a lender who will lend with a guarantee, or if you need more than the direct limits. The lender sets the rate within FSA’s cap, and the guarantee fee adds to the cost.
• Pick a microloan if you need $50,000 or less and want a shorter application.
• Combine loans where it helps. Joint financing pairs an FSA ownership loan with a bank loan, and a down payment loan can sit beside a seller or bank loan on a first farm purchase.

Compare the full cost, not just the rate. Look at fees, the term, the collateral each lender asks for, and whether the rate is fixed or variable. A longer term lowers the yearly payment but raises the total interest you pay, as the calculator below shows.

Common reasons an application stalls

• A farm plan that does not show enough cash for the payment and family living.
• Missing tax returns, leases or production records.
• Collateral that does not cover the loan.
• A purpose that the program does not allow, such as using an operating loan for a land purchase.

Ask the FSA office for a checklist before you start, and keep copies of everything you send.

How to apply for an FSA farm loan

1. Write down what you need the money for, how much, and over how many years.
2. Build a farm plan: expected income, costs, family living and existing debt.
3. Gather records: tax returns, balance sheet, production history and leases.
4. Choose direct or guaranteed. For a guaranteed loan, start with your lender; for a direct loan, contact your local FSA office at a USDA Service Center.
5. Submit the application and answer any follow-up questions quickly.
6. After approval, use the funds only for the approved purpose and keep records for annual reviews.

Good field records help with step three. Some growers use satellite crop maps from Farmonaut to keep a dated record of how each field performed through the season, which can sit alongside yield records in a farm plan.

▶ How to read satellite NDVI maps, run a farm advisory and pull a field report for your own farm. · 19:36

Check a loan payment before you apply

A loan is only useful if the farm can carry the payment. Use the calculator to compare the yearly payment with the cash your farm has left after costs and family living. The default numbers are examples, set close to break-even, not a forecast.

Try the numbers for your own farm below.

Proposed changes to FSA loan limits

Loan limits for direct loans were last raised by the 2018 farm bill. The Farm Bureau points out that land values and production costs have risen since then. The House passed its farm bill, H.R. 7567 (the Farm, Food, and National Security Act of 2026), on April 30, 2026, according to a Congressional Research Service comparison of the House and Senate bills.

Farm bill proposals in Congress, as summarised by the American Farm Bureau Federation, would raise direct ownership loans from $600,000 to $850,000, direct operating loans from $400,000 to $750,000 and microloans from $50,000 to $100,000. It would also raise the statutory base for guaranteed loans from $1.75 million to $3.5 million for ownership and $3 million for operating. These are proposals until a final farm bill becomes law, so use current limits for any plan you make now.

Chart

FSA loan limits now and in the House farm bill

$ thousand; guaranteed figures are statutory bases before inflation adjustment

Insurance, management and land records alongside an FSA loan

A loan pays for the farm; it does not protect it. Crop insurance, livestock cover, equipment cover and liability insurance protect the assets that secure the loan. Ask your FSA office or lender which coverage your loan requires, as rules differ by program and by lender.

Farm management services can help with record keeping, budgets and compliance. Farmland managers help landowners with leases, soil and water conservation, and succession plans. None of these is required for an FSA loan, but each can make a farm plan easier to prepare and review.

Technology can also help you track what a loan buys. Precision agriculture tools, yield maps and satellite crop monitoring show how fields respond to new equipment or practices. The Farmonaut Satellite + AI Farm Monitoring System gives vegetation maps for fields you draw on web, Android or iOS.

Related pages on our site: USDA loan interest rates, crop loan and insurance tools, large-farm admin app, fleet management, carbon footprinting, traceability, product traceability, API developer docs, new farming techniques, farmland innovations by country and the web app.

▶ Six plain steps to start precision agriculture on a farm without buying a robot. · 4:18

Related reading on this site: Midwest Appraisal & Farm Management Services in Iowa.

FAQ

What are the main types of Farm Service Agency loans?

FSA offers direct operating loans, direct farm ownership loans (including joint financing and down payment loans), microloans, guaranteed loans made through commercial lenders, and emergency loans after a declared disaster.

What is the FSA loan interest rate right now?

On October 1, 2026, FSA listed 5.375% for direct operating loans and microloans, 6.25% for direct ownership loans, 4.25% for joint financing, 2.25% for down payment loans and 3.75% for emergency loans. Rates change monthly, so check the FSA rates page.

How much can I borrow from FSA?

Up to $400,000 on a direct operating loan, $600,000 on a direct ownership loan and $50,000 on each type of microloan. Guaranteed loans go up to $2,558,000, adjusted each fiscal year for inflation.

How does the FSA guaranteed loan program work?

You apply through an approved commercial lender. The lender makes and services the loan and sets the rate within FSA’s cap. FSA guarantees up to 90% of the loss on most loans and up to 95% in certain cases, and for most loans FSA charges the lender a fee of 1.5% of the guaranteed portion, which the lender may pass on to you.

Do I need to be a beginning farmer to get an FSA loan?

No. Any eligible farmer who cannot get enough commercial credit can apply. Beginning farmers, defined as those operating a farm for no more than 10 years, get set-aside funds and access to down payment loans.