Farm Storage Facility Loan program now includes microloan option

Farm Storage Facility Loan program now includes microloan option

Program also expands list of commodities eligible for Farm Storage Facility Loan.

FSA Administrator Val Dolcini and Agricultural Marketing Service Administrator Elanor Starmer announced changes to the Farm Storage Facility Loan program April 29 during a local and regional food roundtable in Columbus, Ohio. The loans now include a smaller microloan option with lower down payments that are designed to help producers, including new, small and mid-sized producers, grow their businesses and markets.

Changes were announced to the Farm Storage Facility Loan program. (Photo: maxsattana/Thinkstock)

"As more communities reconnect with agriculture, consumer demand is increasing for food produced locally or regionally," said Dolcini. "Portable handling and storage equipment is vital to helping farmers get their products to market more quickly and better maintain product quality, bringing them greater returns. That's why we've added this type of equipment as a new category for our Farm Storage Facility Loan program."

New option

The program also offers a new "microloan" option, which allows applicants seeking less than $50,000 to qualify for a reduced down payment of 5% and no requirement to provide three years of production history. Farms and ranches of all sizes are eligible. The microloan option is expected to be of particular benefit to smaller farms and ranches, and specialty crop producers who may not have access to commercial storage or on-farm storage after harvest. These producers can invest in equipment like conveyers, scales or refrigeration units and trucks that can store commodities before delivering them to markets. Producers do not need to demonstrate the lack of commercial credit availability to apply.

"Growing high-value crops for local and regional markets is a common entry point for new farmers," said Starmer. "Since they often rent land and have to transport perishable commodities, a loan that can cover mobile coolers or even refrigerated trucks fills an important gap. These producers in turn supply the growing number of food hubs, farmers markets or stores and restaurants interested in sourcing local food."

Eligible commodities

Earlier this year, FSA significantly expanded the list of commodities eligible for Farm Storage Facility Loan. Eligible commodities now include aquaculture; floriculture; fruits (including nuts) and vegetables; corn, grain sorghum, rice, oilseeds, oats, wheat, triticale, spelt, buckwheat, lentils, chickpeas, dry peas, sugar, peanuts, barley, rye, hay, honey, hops, maple sap, unprocessed meat and poultry, eggs, milk, cheese, butter, yogurt and renewable biomass. FSFL microloans can also be used to finance wash and pack equipment used post-harvest, before a commodity is placed in cold storage.

To learn more about Farm Storage Facility Loans, visit www.fsa.usda.gov/pricesupport or contact a local FSA county office.
To find your local FSA county office, visit http://offices.usda.gov.

Source: USDA

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