Changes to the Farm Storage Facility Loan program have been implemented in accordance with the 2008 Farm Bill. These changes will allow producers of eligible commodities to obtain low-interest financing to build or upgrade farm storage and handling facilities. USDA's Farm Service Agency administers the program on behalf of the Commodity Credit Corporation.
The maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a down payment of 15%, with CCC providing a loan for the remaining 85% of the net cost of the eligible storage facility and permanent drying and handling equipment. Loan terms of up to 12 years are available. Interest rates are based on the rate which CCC borrows from the Treasury Department.
Payments are available in two disbursements. A partial disbursement will be available after a portion of the construction has been completed. The final fund disbursement will be made when all construction is completed. Applications for the Farm Storage Facility Loan program are made through your local Farm Service Agency office.