# Cattle operating loan rates in Wisconsin

> Wisconsin cattle operating loans generally price between roughly 8.00% and 10.50% APR in early 2026, with Farm Credit and community banks at the low end and FSA direct operating loans below market for eligible borrowers.

**Headline:** 8.00% – 10.50% APR

## Key Figures

| Metric | Value |
| --- | --- |
| Farm Credit System (Compeer Financial) | ~8.00% – 9.25% APR, variable |
| Wisconsin commercial/community banks | ~8.75% – 10.50% APR |
| FSA Direct Operating Loan | 5.375% (Feb 2026 rate) |
| Typical term length | 12-month operating line, annual renewal |
| Typical LTV / collateral coverage | 70–80% on livestock and crops |

## Detail

Wisconsin cow-calf and backgrounding operations typically source annual operating capital from three lender categories: the Farm Credit System (primarily Compeer Financial, which serves Wisconsin, Minnesota, and Illinois), community and regional commercial banks, and the USDA Farm Service Agency. Compeer and larger ag banks generally price variable operating lines in the 8.00% to 9.25% APR range in early 2026, while smaller community banks often run 50 to 150 basis points higher depending on relationship and balance-sheet strength.

The USDA Farm Service Agency publishes Direct Operating Loan rates monthly; the February 2026 rate is 5.375%, materially below commercial pricing and available to eligible family-sized operations through Wisconsin county FSA offices. FSA Guaranteed Operating Loans are originated by a commercial lender with an FSA guarantee, which typically lets the bank offer longer amortization and higher advance rates against cattle collateral than an unguaranteed line.

Collateral expectations for a Wisconsin cattle operating line are standard across lender types: a UCC-1 filing on the live herd, feed and forage inventory, and the current year's crop or feeder-cattle proceeds, with advance rates commonly in the 70 to 80 percent range on appraised livestock value. Lines above the livestock base are usually cross-collateralized with a real estate mortgage on the home farm. Structurally, operating notes are written as 12-month revolving lines renewed each spring, timed so that draws fund feed, custom hire, and cow-calf inputs in Q1 and Q2 and are paid down when cull cows, feeders, or corn move in Q4, matching the seasonal cash-flow pattern that Kansas City Fed ag credit surveys consistently report across the Upper Midwest.

## Frequently Asked Questions

### Who is the main Farm Credit lender for Wisconsin ranchers?

Compeer Financial is the Farm Credit System association serving Wisconsin, Minnesota, and Illinois, and it is the dominant ag operating-loan provider in the state.

### Can Wisconsin cattle producers use FSA loans?

Yes. USDA Farm Service Agency offers Direct and Guaranteed Operating Loans through Wisconsin FSA county offices, with reduced rates for beginning and underserved producers.

### How is collateral typically structured for a WI cattle operating loan?

Lenders file a UCC-1 on the cattle herd, feed inventory, and crop proceeds, often combined with a real estate mortgage when the line exceeds livestock value.

## Sources

1. USDA FSA Farm Loan Programs Interest Rates (2026) — https://www.fsa.usda.gov/resources/programs/farm-loan-programs
2. Compeer Financial - Wisconsin Operating Loans (2026) — https://www.compeer.com/education/insights
3. Federal Reserve Bank of Kansas City Ag Credit Survey (2025-Q4) — https://www.kansascityfed.org/agriculture/ag-credit-survey/

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