# Cattle operating loan rates in Washington

> Operating loans for Washington cattle ranchers generally run 8.25% to 10.75% APR in early 2026, with Farm Credit System lenders at the lower end and community banks at the higher end.

**Headline:** 8.25% – 10.75% APR

## Key Figures

| Metric | Value |
| --- | --- |
| Farm Credit System (Northwest FCS) | 8.25% – 9.50% APR variable |
| Commercial / community banks | 9.25% – 10.75% APR |
| FSA Direct Operating Loan | 5.375% (Feb 2026 published rate) |
| Typical term length | 12-month revolving line; 7-year max on FSA direct |
| Typical LTV on livestock collateral | 65% – 75% of appraised value |

## Detail

Washington's cattle operating loan market is anchored by three lender categories. AgWest Farm Credit (the merged Northwest Farm Credit Services cooperative) is the dominant agricultural lender east of the Cascades and typically prices variable operating lines in the 8.25%–9.50% range for established borrowers. Community banks such as Washington Trust and Banner Bank price 100–150 basis points higher, while USDA FSA direct operating loans publish a below-market rate of 5.375% as of February 2026 but are capped at $400,000 per borrower.

Collateral expectations for WA cattle operating loans center on first-lien positions against the live herd, with lenders advancing 65%–75% of appraised market value on bred cows and feeders. Ranchers with Halter or other GPS collar inventory systems increasingly provide lenders with monthly head-count and weight reports in lieu of quarterly in-person inspections, though FSA direct loans still require an annual on-site chattel inspection by the county farm loan officer.

Cash-flow timing in Washington follows the Pacific Northwest auction calendar. Operating lines are typically drawn from March through June to cover turnout, mineral, hay, and veterinary costs, held flat through summer grazing on USFS and WDNR permits, and paid down in October and November as calves move through Toppenish, Davenport, and Chehalis sale yards. Lenders structure annual revolving notes to mature December 1, aligning repayment with weaning-sale proceeds rather than calendar-year accounting cycles.

## Frequently Asked Questions

### Which lenders serve Washington cow-calf operators?

Northwest Farm Credit Services (part of AgWest Farm Credit), Washington Trust Bank, Banner Bank, and USDA Farm Service Agency county offices in Ellensburg, Yakima, and Colville all underwrite cattle operating loans.

### Does FSA offer a beginning-rancher rate in Washington?

Yes. FSA Direct Farm Operating Loans for beginning farmers are offered at the published direct operating rate (5.375% as of February 2026), with loan amounts up to $400,000 and up to 7-year terms.

### How is seasonal cash flow structured for WA cattle loans?

Most WA operating lines are structured as annual revolving notes that draw during spring turnout and calving and are paid down at fall weaning sales (Oct–Nov), matching Pacific Northwest auction timing.

## Sources

1. USDA FSA Farm Loan Programs – Interest Rates (2026) — https://www.fsa.usda.gov/resources/programs/farm-loan-programs
2. AgWest Farm Credit (Northwest FCS) Lending (2026) — https://www.agwestfc.com/
3. Washington State Department of Agriculture – Livestock (2025) — https://agr.wa.gov/departments/animals-livestock-and-pets

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Source: Vellum — https://vellum.app/cattle-operating-loan-rates/washington