USDA Expands Storage and Facility Loan Programs – Ag Matters

The U.S. Department of Agriculture has improved the Farm Storage and Facility Loan program. Now some low interest loans are available without placing a lien on real estate and in some cases waivers are available for disaster assistance and insurance coverage.

Small and mid-sized operations, specialty crop, fruit and vegetable growers all have access to money for "a variety of supplies including sorting bins, wash stations and other food safety-related equipment."

The USDA has also change the requirements on loans up to $100,000.

Previously, all loans in excess of $50,000 and any loan with little resale value required a promissory note/security agreement and additional security, such as a lien on real estate. Now loans up to $50,000 can be secured by only a promissory note/security agreement and some loans between $50,000 and $100,000 will no longer require additional security.

The loans can be used to "build or upgrade permanent facilities to store commodities." Crops that are eligible for funding include; grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables. Qualified facilities include grain bins, hay barns and cold storage facilities for fruits and vegetables.

Get more details at the USDA website or visit the Farm Service Agency in Marcy at 9025 River Road or call (315) 736-3316 ext 2

SOURCE: USDA