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.
- How to apply for Joe Biden’s student loan relief 2021
- Open Heaven 12th August 2021 RCCG Daily Devotional (Divine Healing)
- Apply Ghana Covid-19 Response Grant (CRG) Application 2021 (gea.gov.gh Portal)
- Jobs: Massive Recruitment at UBA Bank 2021 (Jobs Available For Graduates)
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 per cent down payment requirement, compared to a 15 per cent down payment for a regular FSFL, and waive the regular three-year production history requirement.
Program Requirements 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 applies:
- Has delinquent non-tax federal debt, or
- Has been convicted of a controlled substance violation.
Application Process for Farm Storage Facility Loans
To apply for this loan, visit the Farm Storage Facility Loan Program homepage and scroll to the heading labelled “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.
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.
Additional Information for the United States Farm Storage Facility Loans
|Max Loan Length||7, 10, or 12 years|
|Max Loan Amount||$500,000|
|Repayment Period||Funding to individual farmers and ranchers|
To apply for the United States Farm Storage Facility Loans Application 2021 visit the official website via https://www.fsa.usda.gov/programs-and-services/price-support/facility-loans/farm-storage/index