On Monday, USDA's Farm Service Agency will begin accepting and approving applications for farm storage loans. The Food, Conservation and Energy Act of 2008 made several changes to the program such as increasing the maximum loan limit from $100,000 to $500,000 and the maximum loan term from seven to 12 years. Also, the Secretary of Agriculture is now authorized to allow partial disbursement of the loan to assist in the construction of storage facilities and offer more options for farmers to be able to pledge security for the loan.
"These loan changes are a great benefit to corn farmers," National Corn Growers Association President Bob Dickey said. "Better farm storage allows producers to improve future planning for their businesses and increasing loan length and amounts of loans will make a huge difference. Many farmers are pleased to have these new options available for their farming operations."