Farm Loan

Information Chart

October 2023 fsa.usda.gov

Program Maximum Loan 

Amount Rates and Terms Use of Proceeds

Direct Farm 

Ownership (FO) $600,000

• Rate based on agency 

borrowing costs

• Term up to 40 years

• Purchase farm

• Construct buildings or other 

capital improvements

• Soil and water conservation

• Pay closing costs

Direct Farm 

Ownership

(FO) Participation

$600,000

• Rate is direct FO rate less 2% 

with a floor of 2.5% if at least 

50% of loan amount is provided 

by other lender

• Term up to 40 years

• Same as direct FO

Direct Farm 

Ownership

Microloan (FO ML)

$50,000

• Rate based on agency 

borrowing costs

• Term up to 25 years

• Purchase farm

• Construct buildings or other 

capital improvements

• Soil and water conservation

• Pay closing costs

Direct Down 

Payment Farm 

Ownership Program

The lesser of 45% of:

• the purchase 

price;

• the appraised 

value; or

• $667,000 

($300,150 

maximum)

• Rate is direct FO rate less 4% 

with a floor of 1.5%

• Term of 20 years

• Down payment of at least 5%

• Purchase of farm by a 

beginning or underserved 

farmer

Direct Operating 

(OL) $400,000

• Rate based on agency 

borrowing cost

• Term from 1 to 7 years

• Purchase livestock, poultry, 

equipment, feed, seed, farm 

chemicals, and supplies

• Soil and water conservation

• Refinance debts with certain 

limitations

Direct Operating

Microloan (ML) $50,000 • Same as direct OL • Same as direct OL
USDA is an equal opportunity provider, employer, and lender. fsa.usda.gov

Program Maximum Loan 

Amount Rates and Terms Use of Proceeds

Direct Emergency 

(EM)

100% actual 

or physical 

losses $500,000 

maximum program 

indebtedness

• Rate is based on the OL rate 

plus 1%; with a cap of 3.75%

• Term from 1 to 7 years for nonreal estate purposes

• Term up to 40 years for physical 

losses on real estate

• Restore or replace essential 

property

• Pay all or part of production 

costs associated with the 

disaster year

• Pay essential family living 

expenses

• Reorganize the farming 

operation

• Refinance debts with certain 

limitations

EZ Guarantee $100,000 Same as Guaranteed Operating or 

Guaranteed Farm Ownership

Same as Guaranteed Operating or 

Guaranteed Farm Ownership

Guaranteed 

Operating

$2,236,000 (Amount 

adjusted annually for 

inflation)

• Rate determined by the lender

• Term from 1 to 7 years

• Loan guarantee fee is 1.5%

Same as direct OL

Guaranteed Farm 

Ownership

$2,236,000 (Amount 

adjusted annually for 

inflation)

• Rate determined by the lender

• Term up to 40 years

• Loan guarantee fee is 1.5%

Same as direct FO except loan may 

be used to refinance debts

Guaranteed 

Conservation Loan 

(CL)

$2,236,000 (Amount 

adjusted annually for 

inflation)

• Rate determined by the lender

• Term not to exceed 30 years, 

or shorter period, based on the 

life of the security

• Loan guarantee fee is 1.5%

• Eligibility requirements 

expanded to include large and 

financially strong operations

• Implement any conservation 

practice in an NRCS-approved 

conservation plan

• May be used to refinance 

debts related to implementing 

an NRCS-approved 

conservation plan

Land Contract (LC) 

Guarantee

The purchase price 

of the farm cannot 

exceed the lesser of:

• $500,000; or

• The current 

market value of 

the property

• Rate cannot exceed the direct 

FO interest rate plus 3%

• Amortized over a minimum 

of 20 years with no balloon 

payments during the first

10 years

• Down payment of at least 5%

• Sell real estate through a land 

contract to a beginning or 

underserved farmer

• Guarantee is with the seller of 

the real estate

This fact sheet is provided for informational purposes; other restrictions may apply. For more information visit, 

fsa.usda.gov or farmers.gov. Find your local USDA Service Center at farmers.gov/service-locator.