FSA Andy: USDA offering loans for farm storage facilities

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Hello Again!

As most of you are pressure washing the combine to put her to bed for the winter and re-evaluating the harvest season, I would like to encourage you to take a look at your grain storage situation on the farm.

Are you considering adding a new bin or putting in a new dryer? The FSA office has a very competitive Farm Storage Facility Loan program that may work for you.

The new maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a down payment of 15 percent, with CCC providing a loan for the remaining 85 percent of the net cost of the eligible storage facility and permanent drying and handling equipment.

New loan terms of seven, 10 or 12 years are available, depending on the amount of the loan.

Interest rates for each term rate may be different and are based on the rate which CCC borrows from the Treasury Department. Payments are available in the form of a partial disbursement and the remaining final disbursement.

The partial disbursement will be available after a portion of the construction has been completed. The final fund disbursement will be made when all construction is completed. The maximum amount of the partial disbursement will be 50 percent of the projected and approved total loan amount.

An FSFL must be approved before any site preparation or construction can begin.

Among the commodities eligible for farm storage facility loans are:

  • ♦ Corn, grain sorghum, soybeans, oats, wheat, barley or minor oilseeds harvested as whole grain;
  • ♦ Corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain;
  • ♦ Hay;
  • ♦ Honey;
  • ♦ Renewable biomass; and
  • ♦ Fruits (including nuts) and vegetables (cold storage facilities).

As I put together these articles for the Farm and Dairy, I have just survived the annual Thanksgiving Day meal at our farm. I don’t know if I put happy pills in the potatoes or what, but my Dad even complemented my turkey. We played a few games of euchre without much controversy and there were memories made.

I hope you too, enjoyed a Happy Thanksgiving and are putting away the combine.

As farmers, we know how hard it is to produce the food that feeds the world on Thanksgiving Day and every other day. We are Thankful for You!

That’s all for now

FSA Andy

About the Author

FSA Andy is written by USDA Farm Service Agency county executive directors in northeastern Ohio. More Stories by FSA Andy

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