Farm & Ranch Loans in Texas

• Texas leads the nation in both the number of farms and total farmland acres, and cattle is its #1 commodity, followed by significant cotton and poultry production (USDA Census of Agriculture, 2022).
• Texas farmland value rose about 6.1% in 2025; a verified statewide per-acre figure isn't published here, so check the current number directly at USDA NASS (USDA NASS, Land Values 2025 Summary, Aug. 1, 2025).
• For context, U.S. pastureland — highly relevant across Texas ranchland — averaged roughly $1,920 per acre (+4.9%) in 2025, while national farm real estate averaged about $4,350 per acre (+4.3%) (USDA NASS, 2025).

Because Texas spans everything from Panhandle cropland to Hill Country grazing, local values vary widely — always verify regionally with USDA.

Across Texas operations, lenders generally weigh:

• Credit — repayment history and current debt.
• Cash flow and DSCR — whether income covers payments, gauged with the debt service coverage ratio; cattle cash flow can swing with markets and drought.
• Down payment / LTV — the equity you bring to a purchase.
• Collateral — land, buildings, equipment, and cattle or other livestock.
• Experience — a track record managing the ranch or farm enterprise.

See farm loan requirements for how these come together in practice.

Sketch the math before meeting a lender:

• Estimate a payment with the farm loan payment calculator.
• Test how much land or ranch acreage your cash flow supports using the land affordability calculator.
• Then check your equity and closing costs against the purchase price you're targeting.

Given the state's scale and diversity, borrowing needs range from ranch real estate to poultry-house construction — start with our overview of the types of farm loans to compare:

• Land and ranch real estate loans — to buy or refinance cropland, pasture, and ranch property, usually on longer terms.
• Operating loans — annual credit for inputs, feed, and cattle purchases; often a line of credit.
• Equipment financing — for tractors, cotton and harvest equipment, and livestock-handling systems.
• USDA FSA loans — Direct and Guaranteed options for producers building toward conventional credit.
• Farm Credit System — cooperative lenders with extensive ranch and row-crop experience statewide.

The USDA Farm Service Agency provides Direct and Guaranteed Farm Ownership and Operating loans, with dedicated funding for beginning and socially disadvantaged producers and a Down Payment Loan program for eligible first-time buyers; see our USDA FSA farm loans explained guide for how the categories differ. FSA updates its direct loan interest rates monthly — confirm current terms on the live USDA FSA Farm Loan Programs page instead of relying on a quoted figure.

With the large number of counties in Texas, apply at your local FSA county office; locate it through the FSA state office directory.

What credit score do I need for a farm or ranch loan in Texas?
There's no single number. Banks and Farm Credit lenders generally prefer stronger credit, while USDA FSA programs serve producers who don't yet qualify for conventional financing. Credit is considered alongside cash flow, collateral, and experience — see how to qualify for a farm loan.

How much down payment is typical?
It depends on the loan type and collateral. Ranch and cropland purchases often require substantial equity, while some FSA beginning-farmer programs are designed to lower the up-front cost.

Does Texas have programs for beginning farmers and ranchers?
Yes. USDA FSA reserves loan funds for beginning producers nationwide and offers the Down Payment Loan program, both available in Texas. Apply through your local FSA office, and research Texas-specific agricultural finance programs separately.

Where do I apply for a farm or ranch loan?
Ag banks, Farm Credit System lenders, and the USDA FSA all operate across Texas. Begin by gathering standard paperwork — recent tax returns, a current balance sheet, and a farm or ranch business plan.

Do the values here represent loan terms or offers?
No. They're approximate, dated USDA figures presented for education only — not rate quotes, offers, or guarantees.