NC FSA State Office Newsletter - August 20, 2025.
In This Issue:
USDA’s Farm Service Agency (FSA) celebrated 25 years of the agency’s popular Farm Storage Facility Loan Program (FSFL) this May. For a quarter century, family-owned agricultural operations have received low-interest financing through the program to enhance or expand their operations and manage marketing of the commodities they produce by building or upgrading permanent and portable storage facilities and purchasing needed handling equipment.
The FSFL program was created in May 2000 to address existing on-farm grain storage needs. Since the program’s inception, more than 40,000 loans have been issued for on-farm storage, increasing storage capacity by one billion bushels. While many producers primarily associate the program with grain storage, over the past 25 years the eligible storage has expanded to include a wide variety of facilities and related equipment - new or used and permanent or portable - including hay barns, bulk tanks, and facilities for cold storage. Drying, handling and storage equipment is also eligible, including skid steers and storage and handling trucks.
Eligibility
Eligible commodities for storage loans include grains, oilseeds, peanuts, pulse crops, hay, hemp, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, seed cotton, wool, maple sap, maple syrup, milk, cheese, yogurt, butter, eggs, unprocessed meat and poultry, rye and aquaculture. Most recently, controlled atmosphere storage was added as an eligible facility and bison meat has been also added to the list of eligible commodities.
FSFL is an excellent financing program to address on-farm storage and handling needs for small and mid-sized farms, and for new farmers. Loan terms vary from three 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 storage loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5% down payment requirement, compared to a 15% down payment for a regular FSFL, and microloans waive the regular three-year production history requirement.
How to apply
Loan applications should be filed in the administrative FSA county office that maintains a producer’s farm records. Producers can contact their FSA County Office to make an appointment. Beginning farmers who haven’t worked with FSA can visit farmers.gov/your-business/beginning-farmers for more information or view the New Farmers Fact Sheet.
For more information, visit the FSFL webpage, view the fact sheet and our Ask the Expert Blog, or contact your FSA County Office.
Landowners and operators are reminded that in order to receive payments from USDA, compliance with Highly Erodible Land (HEL) and Wetland Conservation (WC) provisions are required. Farmers with HEL determined soils are reminded of tillage, crop residue, and rotation requirements as specified per their conservation plan. Producers are to notify the USDA Farm Service Agency prior to breaking sod, clearing land (tree removal), and of any drainage projects (tiling, ditching, etc.) to ensure compliance. Failure to update certification of compliance, with form AD-1026, triggering applicable HEL and/or wetland determinations, for any of these situations, can result in the loss of FSA farm program payments, FSA farm loans, NRCS program payments, and premium subsidy to Federal Crop Insurance administered by RMA.
The U.S. Department of Agriculture (USDA) reminds specialty crop producers that the application period for the Food Safety Certification for Specialty Crops (FSCSC) program for program year 2025 opened Jan. 1, 2025, and runs through Jan. 31, 2026. The program has been expanded to include medium-sized businesses in addition to small businesses. Eligible specialty crop growers can apply for assistance for expenses related to obtaining or renewing a food safety certification.
Program Details
FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its on-farm food safety certification, as well as a portion of related expenses.
Eligible FSCSC applicants must be a specialty crop operation; meet the definition of a small or medium-size business and have paid eligible expenses related to certification.
- A small business has an average annual monetary value of specialty crops sold by the applicant during the three-year period preceding the program year of no more than $500,000.
- A medium size business has an average annual monetary value of specialty crops the applicant sold during the three-year period preceding the program year of at least $500,001 but no more than $1,000,000.
Specialty crop operations can receive the following cost assistance:
- Developing a food safety plan for first-time food safety certification.
- Maintaining or updating an existing food safety plan.
- Food safety certification.
- Certification upload fees.
- Microbiological testing for products, soil amendments and water.
- Training.
FSCSC payments are calculated separately for each eligible cost category. Details about payment rates and limitations are available at farmers.gov/food-safety.
Applying for Assistance
For program year 2025, the application period began Jan. 1, 2025, and runs through Jan. 31, 2026. FSA will issue 50% of the calculated payment for program year 2025 following application approval, with the remaining amount to be paid after the application deadline. If calculated payments exceed the amount of available funding, payments will be prorated.
Specialty crop producers can apply by completing the FSA-888-1, Food Safety Certification for Specialty Crops Program (FSCSC) for Program Years 2024 and 2025 application. The application, along with the AD-2047, Customer Data Worksheet and SF-3881, ACH Vendor/Miscellaneous Payment Enrollment Form, if not already on file with FSA, can be submitted to the FSA county office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. Producers with an eAuthentication account can apply for FSCSC online. Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in.
Visit farmers.gov/food-safety for additional program details, eligibility information and application forms.
The U.S. Department of Agriculture’s (USDA) updates to the Farm Service Agency’s (FSA) Farm Loan Programs are officially in effect. These changes, part of the Enhancing Program Access and Delivery for Farm Loans rule, are designed to increase financial flexibility for agricultural producers, allowing them to grow their operations, boost profitability, and build long-term savings.
These program updates reflect USDA’s ongoing commitment to supporting the financial success and resilience of farmers and ranchers nationwide, offering critical tools to help borrowers manage their finances more effectively.
What the new rules mean for you:
- Low-interest installment set-aside program: Financially distressed borrowers can now defer up to one annual loan payment at a reduced interest rate. This simplified option helps ease financial pressure while keeping farming operations running smoothly.
- Flexible repayment terms: New repayment options give borrowers the ability to increase their cash flow and build working capital reserves, allowing for long-term financial planning that includes saving for retirement, education, and other future needs.
- Reduced collateral requirements: FSA has lowered the amount of additional loan security needed for direct farm loans, making it easier for borrowers to leverage their existing equity without putting their personal residence at risk.
These new rules provide more financial freedom to borrowers. By giving farmers and ranchers better tools to manage their operations, we’re helping them build long-term financial stability. It’s all about making sure they can keep their land, grow their business, and invest in the future.
If you’re an FSA borrower or considering applying for a loan, now is the time to take advantage of these new policies. We encourage you to reach out to your local FSA farm loan staff to ensure you fully understand the wide range of loan making and servicing options available to assist with starting, expanding, or maintaining your agricultural operation.
To conduct business with FSA, please contact your local USDA Service Center.
The U.S. Department of Agriculture (USDA) National Agricultural Statistics Service (NASS), in partnership with USDA’s Natural Resources Conservation Service (NRCS), is reaching out to farmers, ranchers and agricultural landowners to gather in-depth information about the conservation practices they use.
Nearly 23,000 operators nationwide will receive the 2025 Conservation Effects Assessment Project survey. Data obtained will support the third set of national and regional cropland assessments delivered by USDA’s Conservation Effects Assessment Project (CEAP), a multi-agency effort led by NRCS to quantify the effects of conservation practices across the nation’s working lands.
Local NASS representatives will visit farmers and agricultural landowners in August and September of 2025 to determine if their operations and properties meet the criteria to be considered eligible candidates for the survey. Eligible farmers and landowners may be contacted between November 2025 and March 2026 and asked to participate in the survey. Typical questions will discuss farm production practices; chemical, fertilizer, and manure applications; tillage; irrigation use; and installed conservation practices. NASS will provide survey data to NRCS, the agency tasked with publishing findings.
CEAP Cropland Assessments quantify the environmental outcomes associated with implementation and installation of conservation practices on agricultural lands. Findings are used to guide conservation program development and support agricultural producers and partners in making informed management decisions backed by data and science.
Specifically, CEAP results may help:
- Evaluate the resources farmers may need in the future to protect soil, water, and habitat.
- Shed light on techniques farmers use to conserve healthy environments.
- Improve and strengthen technical and financial programs that help landowners plan and install conservation practices on agricultural land.
- Support the conservation programs that can help producers’ profits while also protecting natural resources.
The CEAP survey is conducted through a cooperative agreement between NRCS and NASS. NRCS will couple survey results with modeling to report on trends in cropland conservation – and associated outcomes – from 2024 through 2026.
Information provided to NASS and analyzed by NRCS is kept confidential, as required by federal law. The agencies only publish data in aggregate form, ensuring that no individual respondent or operation can be identified.
The data from this survey will be published as a report on the CEAP Cropland Assessments webpage at nrcs.usda.gov/ceap/croplands.. If you have questions about the survey, please contact us at 888-424-7828 or visit the NASS Website.
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USDA in North Carolina
Service Center Locator
State Executive Director - Ronald Garrett
Natural Resources Conservation Service
State Conservationist - Timothy Beard
Regional Director - Kevin Wooten
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