Farm loans help farmers and ranchers start, grow or maintain their farming businesses. These small-business loans can be used to cover operating expenses, purchase livestock, buy farm machinery and agricultural equipment, as well as construct farm buildings, among other purposes.
Loans for farms are available from a range of sources, including government agencies and lenders that specialize in agriculture.
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Best farm loan options for agricultural businesses
- Best for low interest rates and variety of options → FSA loans
- Best for established businesses with good credit → SBA loans
- Best for industry expertise and personalized experience → Farm Credit organizations
- Best for beginner farmer loans → Farm Plus Financial
- Best for bad credit and fast funding → National Funding
Farm Service Agency (FSA) loans
Best for: Low interest rates; the variety of loan options.
The FSA offers several types of farm loans through the U.S. Department of Agriculture (USDA). FSA loans can be a good choice for first-time and established farmers alike. These loans have competitive interest rates, long repayment terms and can be used for a range of different purposes. Here are your options:
Direct operating loans
- Use case: Daily operating costs, family living expenses, purchasing livestock, seed or equipment.
- Loan amount: Up to $400,000.
- Repayment term: Up to seven years.
- Interest rate: 4.625% (as of Feb. 2026).
- Down payment: Not required.
Direct ownership loans
- Use case: Buying or expanding a farm or ranch.
- Loan amount: Up to $600,000.
- Repayment term: Up to 40 years.
- Interest rate: 5.75%.
Microloans
- Designed for small, beginning and niche farm operations, including truck farms, direct-market farms and Community Supported Agriculture (CSA) operations.
- Available as operating or ownership loans.
- Loan amounts up to $50,000.
- Rates and terms mirror standard direct loan programs.
Guaranteed loans.
- Work similarly to SBA loans.
- Issued by USDA-approved commercial lenders, with the FSA guaranteeing up to 95% of the loan.
- Rates and terms negotiated with the lender, subject to the FSA’s maximums.
Additional programs
- Youth loans.
- Emergency loans.
- Rates, terms and funding limits vary by program.
Eligibility requirements
To qualify for one of these FSA farm loans, you’ll need:
- Operate an eligible farm enterprise.
- Demonstrate sufficient managerial experience.
- Describe an acceptable loan purpose.
- Prove your ability to repay.
The FSA doesn’t rely on credit scores to determine eligibility. However, a good credit history can strengthen your application. The FSA will not automatically deny applications based on credit problems or a lack of credit history.
Application process
You can apply:
- Online through the e-Gov system.
- By mail.
- In person at your local FSA office.
- By phone.
Applications for these loans require extensive documentation. Once the FSA has received your completed application and paperwork, you can expect to receive funding within 60 days.
SBA loans
Best for: Established businesses with good credit.
Like FSA farm loans, SBA loans offer long repayment terms and competitive interest rates. They also have larger maximum funding amounts — up to $5 million.
Although the U.S. Small Business Administration recommends that farms and agricultural businesses look at FSA loans before applying for SBA loans, SBA 7(a) and SBA 504 loans can both be good options for established farmers with strong credit.
SBA 7(a) loans
SBA 7(a) loans are issued by banks and credit unions and partially guaranteed by the SBA.
U.S. Small Business Administration SBA 7(a) loan
Max Loan Amount
$5,000,000 - Use cases: Working capital, inventory and equipment purchases, real estate.
- Loan amount: Up to $5 million.
- Interest rates: 9.75% to 14.75%.
- Repayment terms: Up to 10 years for working capital, inventory and equipment purchases; up to 25 years for real estate.
SBA 504 loans
These loans are specifically designed for equipment and real estate purchases. Unlike 7(a) loans, 504 loans come from three places:
- A bank (50%).
- A certified development company, or CDC (35%*).
- The borrower (15%*).
*Because farms are considered a “special purpose property,” borrowers are required to contribute 15% of the loan amount (instead of the standard 10%). In this case, the CDC will provide 35% instead of the typical 40%.
U.S. Small Business Administration SBA CDC/504 loan
Max Loan Amount
$5,000,000 - Loan amount: Up to $5 million (up to 5.5 million for select projects).
- Interest rates: Tied to the 10-year U.S. Treasury note.
- Repayment terms: Up to 25 years.
- Additional requirement: Must meet SBA job creation or retention standards.
Eligibility requirements
To qualify for an SBA 7(a) or 504 loan, you’ll generally need:
- Multiple years in business.
- Good personal credit.
- Strong finances.
Compared with FSA loans, SBA loans tend to have stricter underwriting standards.
Application process
Like FSA loans, SBA loans can be slow to fund due to underwriting and documentation requirements.
You can expedite the process by working with an SBA preferred lender. These lenders have extensive experience with SBA loan applications and are authorized to make credit decisions in-house.
Farm Credit organizations
Best for: Industry expertise; personalized experience.
Farm Credit is a network of lending institutions across the U.S. that are owned by farmers, ranchers and other agricultural businesses. These institutions are divided into four districts and each district has its own regional wholesale bank.
In each of these districts, you can find organizations that offer loans exclusively for farms and other agricultural businesses. These banks may offer:
- First-time and beginning farm loans.
- Livestock loans.
- Poultry loans.
- Land loans and lines of credit.
Loan amounts, repayment terms and interest rates will vary based on the specific institution and loan program.
Regardless of which Farm Credit institution you work with, you’ll receive guidance and expertise that’s unique to your industry.
Eligibility requirements
Requirements vary by institution, but generally you’ll need:
- An established or viable farm operation.
- Demonstrated repayment ability.
- Acceptable credit history.
Because these lenders specialize in agriculture, underwriting may take industry-specific factors into account.
Application process
You can apply directly with your local Farm Credit institution.
Representatives can offer a personalized experience, as well as educational resources and a continuous relationship with your business. If you’re looking to work closely with your bank throughout the loan process and beyond, a local Farm Credit organization may be an option to consider.
Farm Plus Financial
Best for: Beginning farmer loans.
Farm Plus Financial is an asset-based lender that offers both farm loans and lines of credit. All of the lender’s available products are secured by agricultural real estate, making it a good choice for newer farmers who may not have the financials to qualify for other options.
Loan options
- Amounts from $200,000 to $50 million.
- Term loans up to 75% of the loan-to-value (LTV).
- Lines of credit up to 50% LTV.
Interest rates vary based on the product you choose, your repayment terms and your qualifications, among other factors. You can reach out to a lending representative to receive more information about current interest rates.
Eligibility requirements
Although the value of your farm’s real estate will be one of the most important factors in your business loan application, Farm Plus Financial also requires:
- A minimum personal credit score of 660 or higher.
- Farm property of at least five acres.
Application process
You can start an application by submitting an online inquiry form with basic information about your farm and its financing needs. Once you’ve sent the form, a farm loan specialist will reach out to discuss your options and help you with the application. In general, it can take anywhere from one to three months to get funded.
National Funding
Best for: Bad credit; quick access to capital.
If you need capital quickly — or you have bad credit (a personal credit score of 629 or below) — you might consider National Funding for a farm loan. National Funding is an online lender that offers two distinct options: short-term loans and equipment financing.
Short-term loans
National Funding National Funding - Online term loan
Max Loan Amount
$500,000 - Use cases: Working capital, inventory purchases and day-to-day expenses.
- Loan amount: Up to $500000.
- Repayment term: Up to 24 months
- Cost: Factor rates starting at 1.1 for strong-credit borrowers.
Equipment financing
National Funding National Funding - Equipment financing
Max Loan Amount
$150,000 - Use cases: New or used equipment purchases (e.g. combines, tractors, trucks).
- Loan amount: Up to $150000.
- Repayment term: Up to 60 months
- Cost: Factor rates starting at 1.1 for strong-credit borrowers.
Eligibility requirements
Regardless of which option you choose, National Funding offers flexible business loan requirements and a streamlined application process. To qualify, you’ll need:
- Six months in business.
- Personal credit score of 600+.
- Annual revenue of $250000+.
Application process
When you’re ready to apply, you can fill out a simple form on the lender’s website. Next, you’ll talk to a funding specialist who will help you decide which type of farm loan is right for your needs. This representative will also guide you through the application — and once you’re approved, you’ll receive funds in as little as 24 hours.
How to get a farm loan
To get a farm loan for your agriculture business, you can follow these steps:
1. Understand your financing needs
Think about why you need capital and what you’re going to use it for — this will help you determine which type of financing is right for your business.
You should also consider how much debt you can afford to take on. You should make sure that you’ll be able to handle any potential loan payments based on your current income.
2. Evaluate typical farm loan requirements
Overall, the farm loan requirements you’ll need to meet will vary based on your loan type and business lender. Most lenders, however, will consider your personal credit score, time in business and annual revenue.
Additionally, as an agriculture business, lenders will likely pay close attention to industry-specific criteria, such as your farm management experience, the amount of land you have, your farm business plan and assets.
3. Research and compare lenders
With a better understanding of your needs and qualifications, you should be able to focus your lender search to find the options that will be best suited to your business. In general, if you think you may qualify for an FSA loan, you might consider starting your search with these low-interest options.
As you explore different lenders, you should compare them based on factors such as:
- Loan types.
- Maximum funding amounts.
- Repayment terms.
- Business loan rates and fees.
- Down payment requirements.
- Funding speed.
- Application process.
- Customer service.
- Industry experience.
- Lender reputation.
4. Gather your documentation and apply
Once you’ve found the right lender for your needs, gather all of the documentation you need to submit your application. In many cases, you’ll be able to work with a lending representative who will be able to help you through the process and answer any questions you may have.
Once you’ve submitted your application, approval and funding times will vary. Government and commercial lenders tend to have longer timelines, ranging anywhere from several weeks to several months. Online lenders, on the other hand, can fund applications much faster — with some companies providing capital in just 24 hours.
Frequently asked questions
Can I get a farm loan with bad credit?
Yes. Although there may be fewer farm loan options available to borrowers with bad credit, it’s still possible to get financing. The FSA, for example, does not exclude its loan applicants for poor or non-existent credit histories. Online lenders are also more likely to accept borrowers with bad credit.
Can you get a loan to buy a farm?
Yes. In fact, the FSA offers a direct farm ownership loan specifically designed to help borrowers buy a farm or ranch. Commercial and online lenders may also issue business loans that can be used to buy a farm.
How can you get a farm loan with no down payment?
If you want a farm loan with no down payment, you can start by looking into FSA loans. Some of the FSA direct farm loans do not require a down payment.
You might also consider online lenders, such as National Funding, many of which don’t require down payments for their loan options. However, to get a loan with no down payment, it will be helpful to have strong qualifications.
And it’s essential to keep in mind that lenders may charge higher interest rates on no-down payment loans than they would if you provided a down payment on your financing.
Can I get a farm loan with no experience?
It’s possible, but it will likely be more difficult. Many farm lenders want to see that you have agricultural experience before offering you a loan. Online lenders, however, may be more flexible with their requirements.
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- 1. USDA Farm Service Agency. Current FSA Loan Interest Rates.
- 2. U.S. Small Business Administration. Terms, conditions, and eligibility.
