Using the Farm Storage Facility Loan Program to expand on-farm storage

For a quarter-century, family-owned agricultural operations have received low-interest financing through USDA’s Farm Service Agency (FSA) Farm Storage Facility Loan Program (FSFL) to enhance their operations through on-farm storage solutions.

The FSFL program was created in May 2000 to address existing on-farm grain storage needs. Over the past 25 years, eligible storage has expanded to include a wide variety of facilities and related equipment – new or used, permanent or portable – including hay barns, milk bulk tanks and facilities for cold storage. Drying, handling and storage equipment is also eligible, including skid steers and storage and handling trucks.

“Applying for the FSFL program was a simple process,” Milton Arnett of Double R Farms in Green County, KY, said. “The [FSA] office helped us every step of the way to make sure we understood the requirements and told us where we were in the process. I encourage any agricultural producer that needs storage to use the FSFL Program.”

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 option 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.

Microloans are available for loans with an aggregate balance up to $50,000. Microloans have 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 fsa.usda.gov/ resources/ programs/ farm-storage-facility-loan-fsfl-program or contact your FSA County Office.