Palo Alto County FSA Update | News, Sports, Jobs
by Lisa Forburger
On-Farm Storage Facility Loans (FSFLs) provide low-interest financing to producers for the storage, handling and / or transportation of the eligible commodities they produce. This includes building or upgrading on-farm storage and handling facilities, new or used, portable or permanently attached; new or used storage and handling trucks; and portable or permanently attached storage and handling equipment.
Eligible items include grain handling and drying equipment determined by the Commodity Credit Corporation to be necessary and essential for the proper functioning of a grain storage system (with or without storage facility ready). This could include grain carts, semitrailers, and trailers.
The program is administered by the Farm Service Agency (FSA) of the United States Department of Agriculture (USDA). A producer can borrow up to $ 500,000 per loan, with a minimum down payment of 15%. The loan term can be up to 12 years, depending on the loan amount. Producers must demonstrate their storage needs based on three years of production history. The FSA also offers a microcredit option which, while available to all eligible farmers and ranchers, should also be of particular interest to new or small producers when there is a need for financing options for loans of up to $ 50. $ 000 with a lower down payment and reduced documentation. Applicants for all loans will be charged a non-refundable application fee of $ 100. The loan takes 4-6 weeks to process and the interest rate is determined at the time of loan approval.
These loans must be approved by the local state or county FSA committee before any site preparation and / or construction can begin. All loan requests are subject to an environmental assessment. Accepting delivery of equipment, starting site preparation or construction prior to loan approval may hinder the successful completion of an environmental assessment and may affect loan eligibility.
Questions? Please contact the Palo Alto County Farm Service agency by calling 712 852 3386.