Important Reminders for Producers Seeking to Apply for the Farm Storage Facility Loan Program
The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) provides low-interest financing for producers to store, handle, and/or transport eligible commodities through the Farm Storage Facility Loan Program (FSFL). This includes acquiring, constructing, or upgrading on-farm storage and handling facilities, new or used storage and handling trucks, and portable or permanently affixed handling equipment.
Producers that demonstrate storage needs based on three years of production history as applicable may borrow up to $500,000 per loan, with a minimum down payment of 15 percent. FSA also provides a microloan option of up to $50,000 that is of particular interest to new or small producers. All loan applicants will be charged a nonrefundable $100 application fee.
Steps to Apply:
- Visit your local USDA Service Center and speak with FSA staff to determine your eligibility for the FSFL Program.
- If eligible, file a loan application at the USDA Service Center that maintains the farm’s records.
- Wait until the finalization of your loan request before starting any site preparation and /or construction.
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Note: All loan requests are subject to an environmental evaluation. Environmental review processes, including consultations, must be completed and loans must be approved by the local FSA state or county committee before any delivery, site preparation, and construction can begin.
Interest Rates:
Interest rates change monthly, and the rate is the same for a partial and final disbursement.
The December 2023 CCC lending rates for FSFL are:
- Three-year loan terms: 4.750%
- Five-year loan terms: 4.625%
- Seven-year loan terms: 4.625%
- Ten-year loan terms: 4.625%
- Twelve-year loan terms: 4.750%
More information on FSFL can be found on FSA’s website at Farm Storage Facility Loan Program. For more information on FSA’s full suite of loan options, producers can visit farmers.gov, where the Loan Assistance Tool can help you determine loan options. Producers can also contact their local USDA Service Center to learn more about programs that fit their operational needs.
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