The motto for the Boy Scouts is “Be Prepared.”
Are you prepared for your 2015 harvest? Will your corn be singing, “Oh give me a home”?
Now is the time to get ready for your 2015 harvest by applying for a Farm Storage Facility Loan through your local FSA office.
The Farm Storage Facility Loan (FSFL) 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 7, 10 or 12 years are available with the term determined by the total FSFL principal and the borrower.
If the loan is $100,000 or less, the term is 7 years; loans of $100,000.01-to-$250,000 can be for 7 or 10 years; and loans of $250,000.01-to-$500,000 are for 7, 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 loan.
For FSFL loans approved in June, your interest rate will be 1.875 percent for a seven-year loan, 2.125 percent for a 10 year loan, and 2.25 percent for 12 years.
Rules to follow
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.
Accepting delivery of equipment, starting any site preparation, or construction before loan approval, may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility.
Ohio commodities that are eligible include corn, grain sorghum, soybeans, oats, wheat, barley or minor oilseeds harvested as whole grain; as well as corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain; as well as lentils, small chickpeas and dry peas, hay, renewable biomass and fruits and vegetables.
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.
I have hit on a few highlights and I am sure you have lots of questions. Contact your local FSA office for the answers and an application. You can also visit the FSA Price Support website at www.fsa.usda.gov.
That’s all for now,
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