Marathon County Farm Service Agency (FSA) reminds producers who may be considering upgrading or adding extra storage space for harvested crops next year that the Farm Storage Facility Loan (FSFL) program provides low interest loans for building or upgrading storage facilities.
Filing an application early will ensure the project is completed in time before next summer or fall when additional storage may be needed.
The maximum principal amount of a loan through FSFL has increased to $500,000 per structure. Participants are required to provide a down payment of 15 percent, with CCC providing a loan for the remaining 85 percent of the net cost of the eligible storage facility and permanent drying and handling equipment. Loan terms of seven, 10 or 12 years are now available depending on the amount of the loan. Interest rates for each loan term are different and are based on the rate which CCC borrows from the Treasury Department. Currently interest rates are 1.125 percent for a 7-year loan, 1.750 percent for a 10-year loan, and 1.875 percent for a 12-year loan, however interest rates change monthly. Once the loan is approved, the interest rate is locked for the length of the loan.
Applications for FSFL must be submitted to the FSA county office that maintains the farm’s records. An FSFL must be approved before any site preparation or construction can begin.
The following commodities are eligible for farm storage facility loans:
• Corn, grain sorghum, soybeans, oats, wheat, barley or minor oilseeds harvested as whole grain
• Corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain
• Pulse crops – lentils, small chickpeas and dry peas
• Renewable biomass
• Fruits (including nuts) and vegetables – cold storage facilities, but not freezers
For more information about FSFL, please contact your local Marathon County FSA office at (715) 848-2330 or visit us at www.fsa.usda.gov.