Can I get a no‑money‑down dairy loan in Wyoming?

Yes—Wyoming dairy farms can get a USDA FSA zero‑down operating loan if their DSCR is ≥ 1.25 and the farm is fully collateralized. See rates

See rates

The specifics

According to the USDA’s May 2026 rate announcement, the base APR for operating loans is 7.1 % and the program allows a zero‑down loan when the farm is fully collateralized USDA. To qualify, the borrower must maintain a debt‑service coverage ratio (DSCR) of at least 1.25x on projected gross monthly revenue USDA. The USDA permits terms ranging from 48 to 84 months for both equipment and operating line loans, and the loan is secured by the farm’s full property collateral. Farmers must submit the most recent 12‑month financial statements, payroll data, a detailed farm catalog, and a farm‑labored‑expense breakdown as part of the application packet.

Use our quick affordability calculator to estimate monthly obligations. Find seasonal yield trends in the latest Ag Proud article that discusses rising rates and how a fixed USDA rate can mitigate cash‑flow pressure.

The structure mirrors what Colorado Springs family farms use, blending USDA operating lines and production credit to fund seasonal feed and labor needs. See the Colorado Springs guide for a detailed comparison of operating lines and production credit options Colorado Springs family farms.

Qualification & edge cases

FCS America notes that farms with a DSCR between 1.20 and 1.24 may be asked to provide a modest equity contribution or additional collateral to reinforce security FCS America. Farmers operating for fewer than two years might qualify for a USDA 7‑A loan, which offers lower capital requirements for equipment purchases but limits borrowing to equipment costs only FCS America. Any claim that the program will require a 70 % occupancy rate or apply a 5‑10 % equity moat is not supported by current USDA guidelines, and applicants should verify details directly with the FSA.

Background & how it works

The USDA Farm Service Agency’s operating‑loan program has existed since the 1930s, offering producers a way to finance operating expenses without upfront cash. The loans are backed by the farm’s property as collateral, so borrowers with moderate or even poor personal credit can still qualify—provided they meet the DSCR criterion. USDA rates, set annually, stay competitive against private‑bank offerings, which often exceed 15 % APR for similar terms. By locking in a 7.1 % rate through 2026, producers can lock in predictable cash flow for new milking equipment, herd expansion, or operating working capital.

Bottom line

A zero‑down USDA FSA loan is a realistic option for Wyoming dairy farms that show a DSCR of 1.25× and use their farm as full collateral. The approval process takes 30–45 days and the fixed APR stays at 7.1 %. See rates

Disclosures

This content is for educational purposes only and is not financial advice. dairyfarmfinancing.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• USDA
• FCS America
• Ag Proud