NEW FARM LOAN RATES TAKE EFFECT

New October lending rates are in effect for eligible farmers, including South Plains and Texas Panhandle producers. The federal rate schedule began October 1 and sets different borrowing costs depending on the type of farm loan.

Direct operating loans carry a 5.375% rate, while direct farm ownership loans are listed at 6.250%. Joint financing ownership loans are 4.250%, and the down payment ownership program is 2.250%. Emergency loans for the amount of an actual loss are listed at 3.750%.

Farm storage financing also varies by term. The published rates run from 4.500% for 3 years to 5.000% for 12 years. These programs can help eligible operations purchase storage structures or handling equipment.

The rates are not a promise that every applicant qualifies or that every lender will offer the same terms. Guaranteed loans through commercial lenders use rates set by those lenders. Producers can ask their local farm service office about eligibility and which October program fits their operation.

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Photo Via F&M Bank