USDA IMPLEMENTS FARM STORAGE FACILITY LOAN PROGRAM

The USDA has announced that changes to the Farm Storage Facility Loan (FSFL) program have been implemented in accordance with the 2008 Farm Bill, which will 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).

"This is an important program to help producers achieve sufficient storage capacity,” said CDFA Secretary A.G. Kawamura. “I urge all Californians farmers with the need to consider it.”

The maximum principal amount of a loan through FSFL is $500,000. 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 7, 10 or 12 years are available depending on the amount of the loan. Interest rates for each term rate may be different and are based on the rate which CCC borrows from the Treasury Department.

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, rice, soybeans, oats, peanuts, 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, hay, renewable biomass, fruit (including nuts) and vegetables -  cold storage facilities

For more information about FSFL or other FSA price support program, please visit an FSA county office or www.fsa.usda.gov.

-30-