The motto for the Boy Scouts is “Be prepared.” Are you prepared for your 2013 harvest? Will your corn be singing, “Oh give me a home”? Have you considered applying for a Farm Storage Facility Loan through your local FSA office?
The Farm Storage Facility Loan program will allow producers of eligible commodities to obtain low-interest financing to build or upgrade farm storage and handling facilities.
The FSFL collateral must be used for the purpose, for which the storage facility was erected, constructed, assembled or installed for the entire term of the loan.
The 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
Loan terms of seven, 10 or 12 years are available, with the term determined by the total FSFL principal and the borrower.
The options available to the producer include if the loan is:
• $100,000 or less the term is 7 years only.
• $100,000.01 to $250,000 the borrower can specify 7 or 10 years.
• $250,000.01 to $500,000 the borrower can specify seven, 10 or 12 years.
Various interest rates are announced every month and are based on the term chosen for the FSFL loan. The interest rate in effect for the month of approval will be effective for the entire term of the FSFL loan.
Applications for FSFL must be submitted to the FSA county office that maintains the farm’s records. An FSFL must be approved before any site preparation or construction can begin.
The following commodities in Ohio are eligible for FSFL: 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; Pulse crops — lentils, small chickpeas and dry peas; Hay; Renewable biomass.
For the commodities of small grains, corn, soybeans, minor oilseeds, pulse crops, hay and renewable biomass commodities, we will determine the total storage capacity needed on production for two years less what you have available.
For cold storage facilities for fruits and vegetables we will determine the total storage capacity needed on production for one year less what you have available. You must demonstrate a need for additional storage.
There is a nonrefundable application fee for each FSFL of $100 per borrower. Multi peril crop insurance or coverage through the Non Insured Assistance Program is required on all commodities stored in the FSFL funded facility. This coverage must be maintained through the life of the loan.
Contact your local FSA office for more information and maybe even an application. You may also visit the FSA Price Support website at: www.fsa.usda.gov.