The U.S. Department of
Agriculture (USDA) Farm Service Agency (FSA) Farm Storage Facility Loan Program
(FSFL) provides low-interest financing for producers to build or upgrade farm
storage and handling facilities. FSA is authorized to implement the program
through the USDA Commodity Credit Corporation (CCC).
The maximum loan amount
is $500,000 per loan request. Loan terms are 7, 10 or 12 years depending on the
amount of the loan. Each applicant will be charged a nonrefundable $100
application fee.
Eligible Commodities
The following
commodities are eligible:
·
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;
·
Other grains (triticale,
speltz, and buckwheat);
·
Pulse crops (lentils,
chickpeas and dry peas);
·
Hay;
·
Honey;
·
Renewable biomass;
·
Fruits (includes nuts)
and vegetables - cold storage facilities;
·
Floriculture
·
Hops;
·
Maple sap;
·
Milk;
·
Cheese;
·
Butter;
·
Yogurt;
·
Eggs;
·
Meat/poultry
(unprocessed);
·
Rye and;
·
Aquaculture (excluding
systems that maintain live animals through uptake and discharge of water).
Environmental Evaluation
Requirements
These loans must be
approved by the local FSA state or county committee before any site preparation
and/or construction can be started.
All loan requests are
subject to an environmental evaluation. 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.
Eligible Facilities and
Upgrades
The following types of
facilities and upgrades are eligible and must have a useful life of at least 15
years:
·
New conventional cribs
or bins;
·
New oxygen-limiting
structures and remanufactured oxygen-limiting structures;
·
New flat-type storage
structures;
·
New electrical equipment
and handling equipment, excluding the installation of electrical service to the
electrical meter;
·
New safety equipment,
such as interior and exterior ladders and lighting;
·
New equipment to
improve, maintain or monitor the quality of stored grain;
·
New concrete
foundations, aprons, pits, and pads, including site preparation, off-farm labor
and material, essential to the proper operation of the grain storage and
handling equipment;
·
Renovation of existing
farm storage facilities, under certain circumstances, if the renovation is for
maintaining or replacing items;
·
New permanently affixed
grain handling and grain drying equipment determined by CCC to be needed and
essential to the proper operation of a grain storage system (with or without a
loan for the storage facility);
·
New structures that are
bunker-type, horizontal or open silo structures, with at least two concrete
walls and a concrete floor;
·
New structures suitable
for storing hay built according to acceptable design guidelines;
·
New structures suitable
for storing renewable biomass;
·
New bulk tanks for
storing milk;
·
New cold storage
buildings, including prefabricated buildings that are suitable for storing
fruits and vegetables. Also may include permanently affixed cooling,
circulating and monitoring equipment and electrical equipment including labor
and materials for installation of lights, motors and wiring integral to the
proper operation of a cold storage facility.
Provisions for fruits
and vegetables include the following:
-baggers
-boxers
-brush polishers
-bulk bin tippers
-case palletizers
-cement flooring
-circulation fans
-cold dip tanks
-drying tunnels
-dumpers
-electrical equipment
-food safety-related
equipment
-fruit/vegetable
conveyors fruit and/or vegetable hoppers
-hydrolifts
-hydrocoolers
-ice machines
-quality graders
-refrigeration units or
systems
-roller creepfeeders
-roller spray units
-safety equipment
meeting Occupational Safety and Health Administration requirements
-sealants
-sizers
-sorting bins and/or
tables
-washers
-waxers
-weight graders
Notes:
·
Scales, portable
equipment, used bins and used equipment are not eligible for financing.
·
Facilities built for
commercial purposes and not for the sole use of the borrower(s) are not
eligible for financing.
Eligibility Requirements
An eligible borrower is
any person who is a landowner, landlord, leaseholder, tenant or sharecropper.
Contact an FSA office for more details.
Where to File the
Application
Loan applications should
be filed in the administrative FSA office that maintains the farm's records.
More Information
(photo courtesy of kbia.org)