Farm Storage Facility Loan Program Benefits
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.
Farm Storage Facility Loan Program
The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade facilities to store commodities. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage.
Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable. Since its inception in May 2000, more than 33,000 loans have been issued for on-farm storage, increasing storage capacity by 900 million bushels. FSFL is an excellent financing program for on-farm storage and handling for small and mid-sized farms, and for new farmers. Loan terms vary from 3 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 loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5 percent down payment requirement, compared to a 15 percent down payment for a regular FSFL, and waive the regular three-year production history requirement.
Environmental Assessment Requirements
These loans must be approved by the local FSA state or county committee before any site preparation and/or construction begins. All loan requests are subject to environmental assessment. Accept Delivery of equipment, preparation of a site or commencement of construction There may be hindrances to one's successful completion before loan approval. May adversely affect environmental assessment and loan eligibility.
Farm Ownership Loan Program BenefitsFarm Storage Facility Loan Program (FSFL) Final Rule
The Farm Service Agency (FSA) administers the FSFL Program on behalf of the Commodity Credit Corporation (CCC). This rule amends the FSFL Program regulations to add eligibility for portable storage structures, portable equipment, and storage and handling trucks, and to reduce the down payment and documentation requirements for a new “microloan” category of FSFLs up to $50,000. These changes are intended to address the needs of smaller farms and specialty crop producers.
This rule also includes technical and clarifying changes that are consistent with how the FSFL Program is already implemented, including specifying commodities that are already eligible for FSFLs but are not currently listed in the regulations, and changing the required life span of the storage facility from a minimum of 15 years to a minimum of the FSFL term, plus any extensions. This rule is effective April 29, 2016.
Farm Storage Facility Loan Program Interest Rate
The November 2023 CCC lending rates are: FSFL Rates
- 4.875 percent per annum for FSFL with 3-year loan terms;
- 4.750 percent per annum for FSFL with 5-year loan terms;
- 4.750 percent per annum for FSFL with 7-year loan terms;
- 4.750 percent per annum for FSFL with 10-year loan terms;
- 4.750 percent per annum for FSFL with 12-year loan terms;
Who is eligible for Farm Storage Facility Loans?
To be eligible for this loan, a borrower must be a landowner, landlord, leaseholder, tenant, or sharecropper who produces an eligible facility loan and who has a satisfactory credit rating. You must also meet all of the following:
- Has ability to repay the debt for the facility loan, and
- Has a storage need based on the borrower's three-year-average acreage and share of production, minus any current storage available, and
- Provides proof of multi-peril crop insurance from the Federal Crop Insurance Corporation (FCIC) or a private company for the life of the loan, and
- Provides proof of all peril insurance and, if applicable, flood insurance with CCC as a loss payee, and
- Compliant with U.S. Department of Agriculture (USDA) provisions for highly erodible land and wetlands, and
- Compliant with the National Environmental Policy Act, and
- Compliant with any applicable local zoning, land use, and building codes.
A borrower is not eligible if either of the following apply:
- Has delinquent non-tax federal debt, or
- Has been convicted of a controlled substance violation.
Eligible Commodities
The following items are eligible:
- Corn, Grains Sorghum, Rice, Soybeans, Oats, Peanuts, Wheat, Barley or small oilseeds harvested as whole grains;
- Corn, grain sorghum, wheat, oats or barley harvested as other than whole grains;
- other grains (triticale, spelt and buckwheat);
- pulse crops (lentils, gram and dry peas);
- Grass;
- Honey;
- Renewable Biomass;
- Fruits (including nuts) and vegetables – cold storage facilities;
- Flower farming;
- hops;
- Malted small grains;
- maple sap;
- Maple syrup;
- Milk;
- Cheese;
- butter;
- Curd;
- Eggs;
- Meat/poultry (unprocessed);
- Mustard; And
- Aquaculture;
- hemp;
- seed cotton;
- Wool.
Microloan Option
Producers who select the microloan option can borrow up to $50,000, with the minimum down payment reduced to 5 percent and shorter loan terms. Producers can self-certify the storage needs of the eligible commodity and are not required to demonstrate storage needs based on production history.
Farm Operating Loan Program BenefitsQualifying features, equipment and upgrades
The following types of new/used facilities and upgrades are eligible and must have a useful life for at least the term of the loan:
- Conventional cribs or bins;
- Oxygen-limiting structures and remanufactured oxygen-limiting structures;
- Flat-type storage structures;
- Electrical equipment and handling equipment, excluding the installation of electrical service to the electrical meter;
- Safety equipment, such as interior and exterior ladders and lighting;
- Equipment to improve, maintain or monitor the quality of stored grain;
- Concrete foundations, aprons, pits and pads, including site preparation, off-farm labor and material, essential to the proper operation of the grain storage and handling equipment;
- Renovation of existing farm storage facilities, under certain circumstances, if the renovation is for maintaining or replacing items;
- Concrete foundations, aprons, pits and pads, including site preparation, off-farm labor and material, essential to the proper operation of the grain storage and handling equipment;
- Renovation of existing farm storage facilities, under certain circumstances, if the renovation is for maintaining or replacing items;
- Grain handling and grain drying equipment determined by the Commodity Credit Corporation to be needed and essential to the proper operation of a grain storage system (with or without a loan for the storage facility); Structures that are bunker-type, horizontal or open silo structures, with at least two concrete walls and a concrete floor;
- Structures suitable for storing hay built according to acceptable design guidelines;
- Structures suitable for storing renewable biomass;
- Bulk tanks for storing milk or maple sap;
- Cold storage buildings, including prefabricated buildings that are suitable for eligible commodities. Also may include cooling, circulating and monitoring equipment and electrical equipment, including labor and materials for installation of lights, motors and wiring integral to the proper operation of a cold storage facility; and
- Storage and handling trucks, including refrigerated trucks.
Who is eligible?
An eligible borrower is any person who is a landowner, landlord, leaseholder, tenant or sharecropper. Eligible borrowers must be able to show repayment ability and meet other requirements to qualify for a loan. Contact an FSA office for more details.
Small Business Investment Company Program BenefitsWhat are the loan terms for Farm Storage Facility Loans?
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.
| Max Loan Length | 7, 10, or 12 years |
| Interest Rate | Varies |
| Max Loan Amount | $500,000 |
| Payment Frequency | Annually |
| Prepayment Penalties | None |
| Repayment Period | Funding to individual farmers and ranchers |
| Max Loan Length | None |
How do I apply for Farm Storage Facility Loans?
To apply for this loan, visit the Farm Storage Facility Loan Program homepage and scroll to the heading labeled "Application Form". You may also obtain information through your local FSA office or USDA service center. To locate the office nearest you, visit the USDA Service Locator page.It is best to contact the local office first to ensure necessary paperwork is brought to the office.
How can I contact someone?
For more information, visit the Farm Storage Facility Loan Program homepage or contact your local Farm Service Agency (FSA) office. 1-202-720-2791.