The Farm Storage Facility Loan (FSFL) program allows producers of eligible commodities to obtain low-interest financing to build or upgrade farm storage and handling facilities.
The new maximum principal amount of a loan through FSFL is $500,000. Participants are now 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 7, 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.
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 are eligible for farm storage facility loans: Corn, grain sorghum, rice, soybeans, oats, peanuts, 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; Honey; Renewable biomass; and Fruits (including nuts) and vegetables – cold storage facilities.
The Farm Storage Facility Loan (FSFL) program also allows producers to build cold storage facilities to store their fresh fruits and vegetables. To be eligible, cold storage facilities must have a useful life of 15 years and include: New structures suitable for a cold storage facility; new walk-in prefabricated permanently installed coolers suitable for storing fresh fruits and vegetables; New permanently affixed cooling, circulating and monitoring equipment;
Electrical equipment integral to the proper operation of a cold storage facility; and must be an addition or modification to an existing storage facility.
USDA will not make cold storage facility loans for portable structures, portable handling and cooling equipment, used, or pre-owned structures or cooling equipment or structures deemed unsuitable.
The maximum loan amount for a Farm Storage Facility loan is $500,000 per loan, which requires a down payment of at least 15 percent. Applications must be approved before construction can begin. Loan terms of 7, 10 or 12 years are available depending on the amount of the loan.
Loans applications should be submitted to the administrative FSA county office that maintains the records of the farm or farms to which the application applies. If the commodities are produced on land that does not have farm records established, the application must be submitted to the FSA county office that services the county where the facility will be located. Contact your local FSA office for more information on this program.
That’s all for now,
STAY INFORMED. SIGN UP!
Up-to-date agriculture news in your inbox!