Tuesday, March 11, 2014

USDA Enhances Farm Storage Facility Loan Program

The U.S. Department of Agriculture (USDA) has announced the expansion of the Farm Storage and Facility Loan program, which provides low-interest financing to producers.  The enhanced program includes 22 new categories of eligible equipment for fruit and vegetable producers.

Producers with small and mid-sized operations, and specialty crop fruit and vegetable growers, now have access to needed capital for a variety of supplies including sorting bins, wash stations and other food safety-related equipment.  A new more flexible alternative is also provided for determining storage needs for fruit and vegetable producers, and waivers are available on a case-by-case basis for disaster assistance or insurance coverage if available products are not relevant or feasible for a particular producer.

Additionally, Farm Storage and Facility Loans security requirements have been eased for loans between $50,000 and $100,000.  Previously, all loans in excess of $50,000 required a promissory note and additional security, such as a lien on real estate.  Now loans up to $100,000 can be secured by only a promissory note.

The low-interest funds can be used to build or upgrade permanent facilities to store commodities.  Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables.  Qualified facilities include grain bins, hay barns and cold storage facilities for fruits and vegetables.

Contact your local FSA office or visit www.fsa.usda.gov for more about FSA programs and loans, including the Farm Storage Facility Loan Program.

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