Cattle operating loan rates in Virginia

Virginia's cattle operating loan market is anchored by Farm Credit of the Virginias, a member-owned ACA covering all 95 Virginia counties plus West Virginia. Its variable operating lines for cow-calf producers sit in the 8.25% to 9.75% APR range as of early 2026, priced off the 1-month SOFR plus a member spread, with patronage refunds that historically return 75–100 basis points to borrowers.

Commercial banks including Atlantic Union, Truist, and First Bank & Trust quote operating lines from roughly 9.00% to 10.75% APR, with the spread driven by herd size, working-capital ratio, and whether the borrower enrolls in the Virginia Farm Loan Guarantee Program through VDACS, which provides up to a 90% guarantee on loans up to $500,000 and typically shaves 100–200 basis points off the commercial rate.

Producers who do not qualify for conventional credit can access the USDA Farm Service Agency Direct Operating Loan, posted at 5.375% APR for February 2026, with a $400,000 cap and seven-year maximum term. FSA underwriting weights cash-flow projections more heavily than collateral, though lenders across all three channels still expect 65%–75% loan-to-value on the cattle herd itself.

Because Virginia cow-calf operations sell the bulk of feeder calves in October and November at state graded sales, most operating lines are structured as 12-month revolvers that draw through spring calving and summer hay season, then pay down in full at fall marketing. Lenders will ask for a cash-flow budget tied to the VDACS cattle price series and a current hay inventory before advancing against the summer grazing draw.