USDA Announces October 2023 Lending Rates for Agricultural Producers

Contact:

WASHINGTON, Oct. 2, 2023 – The U.S. Department of Agriculture (USDA) announced loan interest rates for October 2023, which are effective Oct. 2, 2023. USDA’s Farm Service Agency (FSA) loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures or meet cash flow needs.

Operating, Ownership and Emergency Loans

FSA offers farm ownership and operating loans with favorable interest rates and terms to help eligible agricultural producers, whether multi-generational, long-time, or new to the industry, obtain financing needed to start, expand or maintain a family agricultural operation. FSA also offers emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters or quarantine. For many loan options, FSA sets aside funding for underserved producers, including, beginning, women, American Indian or Alaskan Native, Asian, Black or African American, Native Hawaiian or Pacific Islander, and Hispanic farmers and ranchers.

Interest rates for Operating and Ownership loans for October 2023 are as follows:

1. Operating Loans: X%
2. Ownership Loans: Y%

FSA also offers guaranteed loans through commercial lenders at rates set by those lenders.

To access an interactive online, step-by-step guide through the farm loan process, visit the Loan Assistance Tool on farmers.gov.

Commodity and Storage Facility Loans

Additionally, FSA provides low-interest financing to producers to build or upgrade on-farm storage facilities and purchase handling equipment and loans that provide interim financing to help producers meet cash flow needs without having to sell their commodities when market prices are low. Funds for these loans are provided through the Commodity Credit Corporation (CCC) and are administered by FSA.

Simplified Direct Loan Application

FSA developed a new, simplified direct loan application for producers seeking a direct farm loan. The new application, reduced from 29 to 13 pages, provides improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers now also have the option to complete an electronic fillable form or a traditional paper application for submission to their local FSA service center.

Disaster Support

FSA also reminds rural communities, farmers and ranchers, families and small businesses affected by the past year’s winter storms, drought, hurricanes and other natural disasters that USDA has programs that provide assistance. USDA staff in the regional, state and county offices are prepared to deliver a variety of program flexibilities and other assistance to agricultural producers and impacted communities. Many programs are available without an official disaster designation, including several risk management and disaster recovery options.

Inflation Reduction Act Assistance for Distressed Producers

The Inflation Reduction Act (IRA), a historic, once-in-a-generation investment and opportunity for the agricultural communities, provided $3.1 billion for USDA to provide relief for distressed borrowers with certain FSA direct and guaranteed loans and to expedite assistance for those whose agricultural operations are at financial risk. Since October 2022, USDA has provided approximately $1.5 billion in immediate assistance to more than 24,000 financially distressed direct and guaranteed FSA loan borrowers.

FSA recently announced additional automatic assistance to guaranteed borrowers in August 2023.

FSA is also accepting and reviewing individual requests for assistance from borrowers who took certain extraordinary measures to avoid delinquency on their direct FSA loans or those who missed a recent installment or who are unable to make their next scheduled installment.

For more information, or to submit a request for assistance, producers can contact their local USDA Service Center or visit farmers.gov/inflation-reduction-investments/assistance.

More Information

To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging in their farmers.gov account. If you don’t have an account, sign up today.

USDA’s Commitment to Sustainable Development Goals (SDGs)

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit https://www.usda.gov.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action
• SDG 16: Peace, Justice, and Strong Institutions
• SDG 17: Partnerships for the Goals

The issues highlighted in the article are connected to various SDGs, including poverty reduction (SDG 1), food security (SDG 2), gender equality (SDG 5), economic growth (SDG 8), reducing inequalities (SDG 10), sustainable communities (SDG 11), climate action (SDG 13), justice and institutions (SDG 16), and partnerships (SDG 17).

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
• Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
• Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources, in accordance with national laws.
• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
• Target 11.a: Support positive economic, social, and environmental links between urban, peri-urban, and rural areas by strengthening national and regional development planning.
• Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
• Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
• Target 17.6: Enhance North-South, South-South, and triangular regional and international cooperation on and access to science, technology, and innovation and enhance knowledge sharing on mutually agreed terms.

The article’s content relates to targets such as implementing social protection systems (Target 1.3), doubling agricultural productivity and incomes (Target 2.3), promoting women’s economic rights (Target 5.a), supporting job creation and access to financial services (Target 8.3), promoting social inclusion (Target 10.2), strengthening development planning (Target 11.a), building resilience to climate-related hazards (Target 13.1), promoting the rule of law (Target 16.3), and enhancing cooperation and knowledge sharing (Target 17.6).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 1.3.1: Proportion of the population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims, and the poor and the vulnerable.
• Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size.
• Indicator 5.a.1: (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure.
• Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex.
• Indicator 10.2.1: Number of countries that have implemented well-managed migration policies.
• Indicator 11.a.1: Proportion of population living in cities that implement urban and regional development plans integrating population projections and resource needs, by size of city.
• Indicator 13.1.1: Number of deaths, missing persons, and directly affected persons attributed to disasters per 100,000 population.
• Indicator 16.3.1: Proportion of victims of violence in the previous 12 months who reported their victimization to competent authorities or other officially recognized mechanisms for collection of data on violence.
• Indicator 17.6.1: Number of science and/or technology cooperation agreements and programmes between countries, by type of cooperation.

The article implies indicators such as the proportion of the population covered by social protection systems (Indicator 1.3.1), volume of production per labor unit (Indicator 2.3.1), proportion of total agricultural population with ownership or secure rights over agricultural land (Indicator 5.a.1), proportion of informal employment (Indicator 8.3.1), implementation of migration policies (Indicator 10.2.1), implementation of urban and regional development plans (Indicator 11.a.1), number of deaths and affected persons due to disasters (Indicator 13.1.1), reporting of violence victimization (Indicator 16.3.1), and number of cooperation agreements and programs (Indicator 17.6.1).

4. Table: SDGs, Targets, and Indicators