Farm Storage Facility Loan Program (FSFL)

Farm Storage Facility Loan Program (FSFL) 

 

What is this program?

Provides low-interest financing for producers to store, handle and/or transport eligible commodities they produce.

 

How can I use this program?

Funds can be used to:

• Acquire, construct or upgrade new or used, portable or permanently affixed, on-farm storage and handling facilities;
• Acquire new or used storage and handling trucks; and
• Acquire portable or permanently affixed storage and handling equipment

 

Who or what is eligible and what are the eligibility requirements?

Eligible borrowers:

• An eligible borrower is any person who is a landowner, landlord, leaseholder, tenant or sharecropper who produces an eligible commodity and can demonstrate storage needs based on three years of production history.
• Eligible borrowers must be able to show repayment ability and meet other requirements to qualify for a FSFL. Contact your local FSA office for more details.

Eligible commodities, facility types, and equipment types:

• 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.
• Eligible equipment includes drying and handling and storage equipment, including storage and handling trucks, which includes refrigerated trucks.
• Eligible facilities and equipment may be new or used, permanently affixed or portable.

 

Are there any deadlines?

No. You should begin the application process a few months in advance of needing the funds to allow time for approval and an environmental evaluation

 

Is there anything else I should know?

• A producer may borrow up to $500,000 per loan, with a minimum down payment of 15 percent. Loan terms are between 3 and 12 years, depending on the amount of the loan.
• 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. For Microloans, producers can self-certify the storage needs of the eligible commodity and are not required to demonstrate storage needs based on production history.

 

How do I apply?

• Loan applications should be filed in the administrative FSA county office that maintains the farm’s records
• Complete this application form
• Applicants for all loans will be charged a nonrefundable $100 application fee

 

 

 

Page last updated: May 2, 2023