USDA Implements Farm Storage Facility Loan Program

Agriculture Secretary Tom Vilsack announced that changes to the Farm Storage Facility Loan (FSFL) program have been implemented in accordance with the 2008 Farm Bill, USAgNet reports. The changes allow producers of eligible commodities to obtain low-interest financing to build or upgrade farm storage and handling facilities. The USDA Farm Service Agency (FSA) administers FSFL on behalf of the USDA Commodity Credit Corporation (CCC).

The maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a down payment of 15%, with CCC providing a loan for the remaining 85% of the net cost of the eligible storage facility and permanent drying and handling equipment. Loan terms of 7, 10 or 12 years are available depending on the amount of the loan. Interest rates for each term rate are based on the rate which CCC borrows from the Treasury Department.