The South Dakota Governor’s Office of Economic Development has lowered interest rates for the state’s Rural Development loan programs to give farmers and ranchers greater financial flexibility.
The rate reductions, which took effect last month (Oct. 21, 2025), lower the base interest rate to 3.5 percent, with a 2.5 percent rate available to qualified beginning farmers and ranchers. The Rural Development programs provide financing for land, equipment, and livestock.
Governor Larry Rhoden says by lowering the interest rates for rural development, they’re helping producers invest in their operations and strengthen their communities.
GOED Commissioner Bill Even says when the Federal Reserve lowered its benchmark rate, GOED took a hard look at how their programs could better serve South Dakotans. He says whether its a young rancher taking their first step or a family operation expanding their herd, this decision supports the future of South Dakota agriculture.
Even says only a few producers access these programs in a typical year, but GOED hopes the new rates will change that. By working with local lenders and purchasing participations when needed, he says the agency can help more farmers and ranchers secure the capital they need to grow.
Producers interested in learning more about the Rural Development programs or determining eligibility for the new rates can visit sdgoed.com or call GOED’s financing team at 605-773-4633.
The GOED Loan Committee voted to lower the interest rates following a review of federal rate adjustments and statewide lending conditions.
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