New provisions are available for the Farm Storage Facility Loan program, which provides low-cost financing for farmers to purchase or upgrade on-farm storage, handling facilities and storage and handling trucks.
The new FSFL provisions include FSFL microloans of up to $50,000 with a 5 percent down payment, and reduced documentation for determining storage capacity needs. Also now included for the FSFL program are storage and handling equipment or trucks, and all FSFL-financed equipment, structures and storage and handling trucks must have a useful life for at least the FSFL term.
The FSFL program benefits producers who lack local commercial storage options or have limited marketing options for their commodities at harvest time.
“Having on-farm storage helps producers sell their crops at a time when the market is favorable for them, rather than being forced to sell immediately after harvest or pay for commercial storage,” said Tony Banks, a commodity marketing specialist for Virginia Farm Bureau Federation. “This is particularly helpful to beginning and small farmers because the loan program requirements may be relatively easier to comply with than standard commercial loan requirements.”
For more information visit fsa.usda.gov/programs-and-
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