USDA expands storage loan program

WASHINGTON — USDA has expanded the farm storage facility loan program, which offers low-interest loans to farmers building on-farm storage facilities.





      It now will include loans for structures designed to store silage. In addition, the required down payment for loans will be reduced from 25 percent to 15 percent.





      Agriculture Secretary Dan Glickman said USDA was broadening this program “to help provide farmers the resources they need to segregate crops and decide when to sell them.”





      Glickman said enrollment in the four-month-old program, as of Oct. 3, includes 2,347 applications from farmers in 38 states; 1,828 loans totaling $54 million in 30 states have been approved, including 438 in Iowa, 563 in Minnesota, 172 in South Dakota, and 123 in Illinois.





      USDA’s Farm Service Agency estimates that these facilities will increase on-farm storage capacity by 36 million bushels.





      Loans are also available to farmers who previously bought or built grain storage facilities between Feb. 2 and May 30, 2000. Farmers may apply for loans and may be approved if they meet eligibility and loan security requirements.



      Additional information can also be found on the Web at:http://www.fsa.usda.gov

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