Farm Storage Facility Loans
Program Description
Farm Storage Facility Loans (FSFL) are provided to encourage the construction of on-farm storage and handling facilities for eligible commodities. Eligible commodities include: corn, grain sorghum, oats, wheat, barley, rice, soybeans, peanuts, minor oilseeds, lentils, chickpeas, dry peas, hay, renewable biomass and cold storage facilities for fruits and vegetables.General Program Requirements
An eligible borrower is any person who is a landowner, landlord, leaseholder, tenant or sharecropper who:- Produces an eligible facility loan commodity
- Has a satisfactory credit rating as determined by Commodity Credit Corporation (CCC)
- Demonstrates the ability to repay the debt for the facility loan
- Possesses no delinquent non-tax federal debt
- Demonstrates a storage need based on the borrower's three-year-average acreage and share of production, minus any current storage available
- Provides proof of multi-peril crop insurance from the Federal Crop Insurance Corporation (FCIC) or a private company for the life of the loan
- Provides proof of all peril insurance and, if applicable, flood insurance with CCC as a loss payee
- Demonstrates compliance with U.S. Department of Agriculture (USDA) provisions for highly erodible land and wetlands
- Demonstrates compliance with the National Environmental Policy Act
- Demonstrates compliance with any applicable local zoning, land use, and building codes
- Has not been convicted of a controlled substance violation
Loan Terms
The interest rate is fixed for the loan term and based on the rate in effect for the applicable loan term during the month of the initial loan approval. Length of loan terms are 7, 10, or 12 years depending on the loan principal.The maximum loan amount is $500,000. One partial disbursement is available. There are no prepayment penalties, and annual payments are required.