| |
Source: Brittany Whitmire, NCSU COOPERATIVE EXTENSION 1/14/22
The Farm Storage Facility Loan Program (FSFL) provides low-interest
financing so producers can build or upgrade facilities to store commodities.
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. Drying and handling and storage equipment is also
eligible, including storage and handling trucks. Eligible facilities and
equipment may be new or used, permanently affixed or portable. Check out the fact sheet for additional information.FSFL is
an excellent financing program for on-farm storage and handling for small and
mid-sized farms, and for new farmers. Loan terms vary from 3 to 12 years. The
maximum loan amount for storage facilities is $500,000. The maximum loan amount
for storage and handling trucks is $100,000. In 2016 FSA introduced a new loan
category, the microloan, for loans with an aggregate balance up to $50,000.
Microloans offer a 5 percent down payment requirement, compared to a 15 percent
down payment for a regular FSFL, and waive the regular three-year production
history requirement. This is
not a new program through FSA, but it is new to me and could have a significant
benefit for dairy producers in NC. Contact your local FSA office for
more information about this program.
|
