Texas Interest Rate Reduction Program (IRR)

The Interest Rate Reduction (IRR) Program, administered by the Texas Agricultural Finance Authority (TAFA) through the Texas Department of Agriculture, lowers the interest rate on loans used to create or expand an agricultural business in Texas. Following the 2025 HB 43/HB 49 reorganization, the program is open to any person or Texas-based agricultural business and is no longer limited to young farmers.

Any person or Texas-based agricultural business that proposes to use loan proceeds for the creation or expansion of an agricultural business in Texas. There is no age restriction — the former Young Farmer age limits (18–46) no longer apply.

Two authorities set the per-borrower cap: Interest Rate Reduction (Texas Agriculture Code Ch. 44) provides up to $500,000 per borrower; Farmer Interest Rate Reduction (Ch. 58) provides up to $1,000,000 per borrower. Eligible uses: purchase of land or other fixed assets and improvements; capital asset acquisition, including equipment used in an agriculture-related operation; any enterprise based on agriculture; and, when required by the lender to finance an eligible expansion, refinancing of existing debt. The application is completed jointly by the lender and borrower and submitted to TDA; on approval the Texas Comptroller deposits funds once the loan has closed.

• Application & Instructions

• FAQs

• Program Overview