Farm Storage Facility Loan Program UPDATE

The U.S. Department of Agriculture (USDA) expanded the Farm Storage and Facility Loan program, which provides low-interest financing to producers.  The enhanced program includes 22 new categories of eligible equipment for fruit and vegetable producers. Producers with small and mid-sized operations, and specialty crop fruit and vegetable growers, now have access to needed capital for a variety of supplies including sorting bins, wash stations and other food safety-related equipment.  A new more flexible alternative is also provided for determining storage needs for fruit and vegetable producers, and waivers are available on a case-by-case basis for disaster assistance or insurance coverage if available products are not relevant or feasible for a particular producer. Additionally, Farm Storage Facility Loan security requirements have been eased for loans up to $100,000.

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, chickpeas and dry peas
  • Hay
  • Honey
  • Renewable biomass
  • Fruits (includes nuts) and vegetables – cold storage facilities

Previously, all loans in excess of $50,000 and any loan with little resale value required a promissory note/security agreement and additional security, such as a lien on real estate.  Now loans up to $50,000 can be secured by only a promissory note/security agreement and some loans between $50,000 and $100,000 will no longer require additional security. The low-interest funds can be used to build or upgrade permanent facilities to store commodities. Contact your local FSA office or visit www.fsa.usda.gov for more about FSA programs and loans, including the Farm Storage Facility Loan Program.

Qualified facilities include grain bins, hay barns and cold storage facilities for fruits and vegetables.
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