By Jamie Martin
The U.S. Department of Agriculture’s Farm Service Agency (FSA) is marking the 25th anniversary of its Farm Storage Facility Loan Program (FSFL), a vital initiative launched in May 2000 to help family-run farms enhance their storage capabilities.
Over the past quarter century, the program has supported agricultural producers with low-interest loans to build or improve storage facilities and acquire essential handling equipment, ultimately boosting on-farm efficiency and market readiness.
“Participating in FSA’s Farm Storage Facility Loans program provides producers affordable financing that allows them to build an on-farm storage system the right way from day one a system that provides grain handling capacity for years to come,” said FSA Administrator Bill Beam.
“Many people think of grain storage when they hear on-farm commodity storage, but the reality is, the program has expanded over the past quarter century to include a variety of storage and handling options including bins, cold storage, trucks and more, all designed to help agricultural producers take their commodities from field to facility to the end user.”
Since its inception, FSFL has issued over 40,000 loans, contributing to an increase of one billion bushels in on-farm storage capacity.
While initially focused on grain storage, the program has evolved to include a broad range of eligible storage types, such as hay barns, bulk tanks, cold storage units, drying equipment, and portable or permanent storage systems. Equipment like skid steers and handling trucks also qualify.
The list of eligible commodities has grown significantly and now includes grains, oilseeds, hay, fruits and vegetables, dairy products, renewable biomass, aquaculture, maple syrup, and more. Recently, controlled atmosphere storage and bison meat have been added.
The FSFL program is particularly beneficial for beginning and mid-sized farmers. Loan terms range from three to 12 years. The maximum loan amounts are $500,000 for storage facilities and $100,000 for storage and handling trucks.
A microloan option, introduced in 2016, allows smaller loans up to $50,000 with a reduced 5% down payment and no production history requirement.
To apply, producers should contact their local FSA office. Beginning farmers can also find more resources at farmers.gov.
Photo Credit: usda-farm-service-agency
Categories: National