Types of loans
Operating loans may be used for various short-term and
intermediate-type credit needs, such as the purchase of
livestock and equipment and annual operating expenses. Farm
ownership loans may be used for the purchase or improvement of
farm or ranch real estate and buildings associated with these
properties.
Who may borrow
Individuals, partnerships, joint operations, corporations,
limited liability companies and cooperatives primarily and
directly engaged in family-size farming operations may apply.
Terms and interest rates
Repayment terms for direct operating loans depend on the
collateral securing the loan and usually run from one to seven
years. Repayment terms on direct farm ownership loans are up to
40 years. Guaranteed loan terms (made through commercial
lenders, i.e., banks) are set by the lender.
Interest rates
Current interest rates are:
-
Operating
loans: 1.375 percent
-
Farm ownership
loans: 3.375 percent
-
Emergency loans: 3.750 percent