The Farm Bill Expired on September 30, 2026: What It Means for FSA Farm Loans
Introduction
On September 30, 2026, the 2018 Farm Bill — already extended three times — expired for good. Congress's latest continuing resolution funds the government through December 11 but does not extend the farm bill, and a replacement is stalled: the House passed its "skinny" farm bill (H.R. 7567) in April 2026, the Senate Agriculture Committee advanced its own version on September 16, but the full Senate has not scheduled a vote and is likely to recess ahead of the November elections.
Farmers are asking a simple question: can I still apply for an FSA farm loan? The short answer is yes. Here is exactly what expired, what did not, and what it means for your October 2026 borrowing plans.
What Actually Expired — and What Did Not
The clearest casualty so far is the Conservation Reserve Program (CRP): the Farm Service Agency has paused new CRP enrollment because it no longer has statutory authority to approve new contracts, and programs with authority tied to the 2018 bill are on hold. Commodity and conservation titles face varying funding and authority deadlines.
FSA farm loan programs are a different story. Most of them are authorized by the Consolidated Farm and Rural Development Act of 1961 (P.L. 87-128), not by the farm bill — direct and guaranteed farm ownership loans, direct and guaranteed operating loans, and emergency loans all draw permanent authority from that act. So the programs farmers actually borrow through continue to operate and accept applications normally: Direct Operating, Direct Ownership, Guaranteed, Microloan, Emergency, Joint Financing, and Down Payment loans.
Separately, USDA has been modernizing farm loan delivery on its own: the fast-track application process for qualifying direct-loan borrowers is now permanent, preferred lenders can certify guaranteed-loan applicants with delegated authority, and electronic loan processing is coming in 2027. Farm credit keeps moving while the legislation catches up.
Your Current Menu: October 2026 FSA Rates and Limits
FSA reset its interest rates on October 1, 2026, and these remain in force:
| Loan program | Interest rate (Oct 2026) | Limit |
|---|---|---|
| Direct Operating | 5.375% | $400,000 (1–7 years) |
| Direct Ownership | 6.250% | $600,000 (up to 40 years) |
| Joint Financing | 4.250% | 50% of purchase price |
| Down Payment (beginning farmers) | 2.250% | 45% of price, up to $300,150 |
| Emergency | 3.750% | Varies by disaster designation |
| Guaranteed | Negotiated with lender | $2,343,000 (FY2026) |
| Microloan | Direct Operating rate (5.375%) | $50,000 |
Run any of these through our FSA loan calculator: it presets the official October 2026 rate for each program, validates your amount and term against the statutory limits, and shows a guaranteed-loan comparison when a direct cap is too small.
What a New Farm Bill Could Change
The one thing the expired bill matters for in farm lending is loan limits. USDA can streamline paperwork and technology, but it cannot raise statutory limits on its own — only Congress can. The House-passed H.R. 7567 would raise Direct Ownership loans to $850,000, Direct Operating to $750,000, Guaranteed Ownership to $3.5 million, Guaranteed Operating to $3 million, and double the microloan limit to $100,000. None of this is law yet.
Bottom line: do not delay an application while waiting for higher limits. Borrow against the limits in force today, and re-check the rules if — and when — Congress passes the new bill.
Common Mistakes to Avoid
First, assuming the expiration froze your loan application — it did not; FSA loan programs run on separate, permanent authority. Second, applying for a program that does not fit the purpose (an operating loan at 5.375% is for this season's inputs, not for buying land). Third, treating the proposed higher limits as current law — always confirm the limit actually in force with your local FSA service center before you plan around it. Fourth, forgetting that rates reset monthly: confirm the effective rate at application time, not the one from last month's headline.
Conclusion
The Farm Bill expired on September 30, 2026, but your access to FSA farm credit did not expire with it. Rates reset October 1 — operating 5.375%, ownership 6.250%, joint financing 4.250%, down payment 2.250%, emergency 3.750% — and the programs keep accepting applications while Congress works on the replacement. Model your payment now with the FSA loan calculator instead of waiting on Washington.
References
- DTN Ag Policy Blog (Sept 30, 2026): CRP enrollment paused as the farm bill expires; continuing resolution funds government through Dec. 11 without extending the bill.
- The Food Institute (Oct 2026): the 2026 farm bill remains stalled ahead of the November midterms; Senate Agriculture Committee advanced its own version Sept. 16.
- USDA Explanatory Notes — Farm Service Agency: most FSA farm loan programs are authorized by the Consolidated Farm and Rural Development Act, P.L. 87-128.
- American Farm Bureau Federation / PNW Ag Network (Sept 2026): USDA farm loan modernization and proposed limit increases in H.R. 7567.
- USDA Farm Service Agency: current farm loan interest rates (effective October 1, 2026).
Frequently Asked Questions
Does the Farm Bill expiration stop me from applying for an FSA loan?
No. Most FSA farm loan programs are authorized by the Consolidated Farm and Rural Development Act of 1961 — permanent authority, not the farm bill. Direct Operating, Direct Ownership, Guaranteed, Microloan, Emergency, Joint Financing, and Down Payment loans continue to operate and accept applications normally after September 30, 2026.
Which farm programs actually stopped when the farm bill expired?
New Conservation Reserve Program (CRP) enrollment is paused — the Farm Service Agency has no statutory authority to approve new CRP contracts after September 30, 2026. Programs with authority tied to the 2018 farm bill face varying funding and authority deadlines; farm loan programs are not among them.
Are the October 2026 FSA interest rates still valid?
Yes. FSA reset rates on October 1, 2026 and they remain in force: Direct Operating 5.375%, Direct Ownership 6.250%, Joint Financing 4.250%, Down Payment 2.250%, Emergency 3.750%. Guaranteed loan rates are negotiated with the lender. Rates reset monthly.
Will the new farm bill raise FSA loan limits?
Possibly, but not yet. The House-passed H.R. 7567 would raise Direct Ownership to $850,000, Direct Operating to $750,000, Guaranteed Ownership to $3.5 million, Guaranteed Operating to $3 million, and double the microloan limit to $100,000. As of October 6, 2026 these are proposals, not law.
Should I wait for the new farm bill before applying for a loan?
No. Borrow against the limits and rates in force today — the programs are fully operational. If Congress later raises limits, you can revisit your financing then. Model your payment now with our FSA loan calculator to see what the farm can afford today.
