The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade permanent and portable storage facilities and equipment. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, hemp, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, maple syrup, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable.
Since its inception in May 2000, more than 33,000 loans have been issued for on-farm storage, increasing storage capacity by 900 million bushels.
FSFL is an excellent financing program for on-farm storage and handling for small and mid-sized farms, and for new farmers. Loan terms vary from 3 to 12 years. The maximum loan amount for storage facilities is $500,000. The maximum loan amount for storage and handling trucks is $100,000. In 2016 FSA introduced a new loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5 percent down payment requirement, compared to a 15 percent down payment for a regular FSFL, and waive the regular three-year production history requirement.
Farm Storage Facility Loan Program Overview
• 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;
• Malted small grains;
• Maple sap;
• Maple syrup;
• Milk;
• Cheese;
• Butter;
• Yogurt;
• Eggs;
• Meat/poultry (unprocessed);
• Rye; and
• Aquaculture;
• Hemp;
• Seed Cotton;
• Wool.
Farm Storage Facility Loans Fact Sheet
July 2022
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OVERVIEW
Farm Storage Facility Loans (FSFLs) provide low-interest financing for
producers to store, handle and/or transport eligible commodities they
produce. This includes the following:
• Acquire, construct or upgrade new or used, portable or permanently
affixed, on-farm storage and handling facilities;
• Acquire new or used storage and handling trucks; and
• Acquire portable or permanently affixed storage and handling
equipment.
The program is administered by the U.S. Department of Agriculture
(USDA) Farm Service Agency (FSA).
A producer may borrow up to $500,000 per loan, with a minimum down
payment of 15 percent. Loan terms are up to 12 years, depending on the
amount of the loan. Producers must demonstrate storage needs based on
three years of production history. FSA also provides a microloan option
that, while available to all eligible farmers and ranchers, also should be
of particular interest to new or small producers where there is a need for
financing options for loans up to $50,000 at a lower down payment with
reduced documentation.
Applicants for all loans will be charged a nonrefundable $100 application
fee.
MICROLOAN OPTION
Producers who select the microloan option can borrow up to $50,000,
with the minimum down payment reduced to 5 percent and shorter
loan terms. Producers can self-certify the storage needs of the eligible
commodity and are not required to demonstrate storage needs based on
production history.
How It Works
ELIGIBLE COMMODITIES
The following commodities are eligible:
• Corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley
or minor oilseeds harvested as whole grain;
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.
USDA is an equal opportunity provider, employer, and lender.
WHO IS ELIGIBLE?
An eligible borrower is any person who is a landowner, landlord,
leaseholder, tenant or sharecropper. Eligible borrowers must be able to
show repayment ability and meet other requirements to qualify for a
loan. Contact an FSA office for more details.
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FARM STORAGE FACILITY LOANS - July 2022
ELIGIBLE FACILITIES, EQUIPMENT AND UPGRADES
The following types of new/used facilities and upgrades are eligible and
must have a useful life for at least the term of the loan:
• Conventional cribs or bins;
• Oxygen-limiting structures and remanufactured oxygen-limiting
structures;
• Flat-type storage structures;
• Electrical equipment and handling equipment, excluding the
installation of electrical service to the electrical meter;
• Safety equipment, such as interior and exterior ladders and lighting;
• Equipment to improve, maintain or monitor the quality of stored
grain;
• 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;
• 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;
• Grain handling and grain drying equipment determined by the
Commodity Credit Corporation to be needed and essential to the
proper operation of a grain storage system (with or without a loan
for the storage facility);
WHERE TO FILE THE APPLICATION
Loan applications should be filed in the administrative FSA county
office that maintains the farm’s records.
• Structures that are bunker-type, horizontal or open silo structures,
with at least two concrete walls and a concrete floor;
• Structures suitable for storing hay built according to acceptable
design guidelines;
• Structures suitable for storing renewable biomass;
• Bulk tanks for storing milk or maple sap;
• Cold storage buildings, including prefabricated buildings that
are suitable for eligible commodities. Also may include 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;
and
• Storage and handling trucks, including refrigerated trucks.
FOR MORE INFORMATION
For more information, visit farmers.gov/recover. Find your local
USDA Service Center at farmers.gov/service-center-locator.
This fact sheet is for informational purposes only; other eligibility
requirements or restrictions may apply.
Notes:
• Eligible storage structures and handling equipment, having a useful life for the entire term of the loan, may be permanently affixed or portable.
• Facilities built for commercial purposes and not for the sole use of the borrower(s) are not eligible for financing.
Other examples of equipment include but are not limited to the following:
• baggers
• boxers
• brush polishers
• bulk bin tippers
• case palletizers
• cement flooring
• circulation fans
• cold dip tanks
• conveyors
• drying tunnels
• dumpers
• electrical equipment
• food safety-related
equipment
• hoppers
• hydrocoolers
• hydrolifts
• ice machines
• quality graders
• refrigeration units or systems
• roller spray units
• safety equipment meeting Occupational
Safety and Health Administration
requirements
• sealants
• sizers
• sorting bins and/or tables
• storage and handling trucks
• washers
• waxers
• weight graders