Farm Storage Facility Loans

 

The Farm Storage Facility Loan (FSFL) Program provides low-interest financing for producers to build, upgrade, or acquire farm storage and handling facilities, storage and handling equipment and trucks. The following commodities are eligible for on-farm storage, drying and handling equipment: corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, or minor oilseeds harvested as whole grain; corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain; pulse crops (lentils, chickpeas and dry peas); hay; honey; renewable biomass; fruits (includes nuts) and vegetables - cold storage facilities; aquaculture (excluding systems that maintain live animals through uptake and discharge of water); floriculture; hops; milk; rye; meat and poultry (unprocessed); eggs; cheese, butter and yogurt. The loan must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition can be started. All loan requests are subject to an environmental evaluation. Accepting delivery of equipment, starting any site preparation, or construction before loan approval, may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility. The SSFL program provides loans to processors of domestically produced sugarcane and sugar beets for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars.

Active 10.056 Farm Service Agency, Department of Agriculture E - Direct Loans Not applicable. Food, Conservation, and Energy Act of 2008, Title 1, Part Subtitle 5, Section 1614, Public Law -110-246, 7 U.S.C. 7971, 8789
CCC Charter Act, 15 U.S.C. 714
Food. Conservation, and Energy Act of 2008, Title 1, Section 1402 An eligible FSFL borrower is any person who, as landowner, landlord, operator, producer, tenant, leaseholder, or sharecropper: (1) Has a satisfactory credit history and demonstrates an ability to repay the debt arising under this program using a financial statement acceptable to CCC prepared within 90 days of the date of application; (2) has no delinquent Federal debt defined by the Debt Collection Improvement Act of 1996 at the time of loan disbursement; (3) is a producer of a facility loan commodity as defined by CCC; (4) demonstrates a need for storage capacity as defined by CCC; (5) provides proof of crop insurance offered under the Federal Crop Insurance Program for crops of economic significance on all farms operated by the borrower in the county where the storage facility is located; (6) is in compliance with USDA provisions for highly erodible land and wetlands provisions according to 7 CFR Part 12; (7) demonstrates compliance with any applicable local zoning, land use, and building codes for the applicable farm storage facility structures; (8) provides proof of flood insurance if CCC determines such insurance is necessary to protect the interests of CCC, and proof of all peril structural insurance, to CCC annually; (9) demonstrates compliance with the National Environmental Policy Act regulations at 40 CFR, Parts 1500- 1508; and (10) has not been convicted under Federal or State law of a controlled substance violation under 7 CFR Part 718. An eligible producer is the owner of a part or all of the domestically grown sugar beets or sugarcane, including share rent landowners, at both the timer of harvest and the time of delivery to the processor. A sugar beet or sugarcane processor is eligible for loans only if the processor has agreed to all the terms and conditions in the loan application, and has executed a note and security agreement, and storage agreement with the Commodity Credit Corporation (CCC). Processors must: 1) Have a satisfactory credit history; 2) Demonstrate a need for increased storage capacity; 3) Demonstrate compliance with an applicable local zoning, land use and building codes; 4) Annually provide CCC proof of all-peril insurance on the structure; 5) Demonstrate compliance with the National Environmental Policy Act; 6) Not have been convicted under federal or State law of disqualifying controlled substance violation; and 7) Be approved by CCC to store sugar either owned or pledged as security to CCC. SSFL must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition can be started. All loan requests are subject to an environmental evaluation. Accepting delivery of equipment, starting any site preparation, or construction before loan approval, may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility. Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Landowners, landlords, operators, producers, tenants, leaseholders, or sharecroppers are the beneficiaries. The authorized SSFL will be used by the processor for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars. Applicants must establish that they have a need for the storage capacity for structures. There is no need to establish the storage need for handling equipment and trucks. The applicant must establish that he/she has the ability to repay the loan, and pay down payment to contractor or supplier. Preapplication coordination is required. An environmental impact assessment is required for this listing. No additional information. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. FSFL Application Form CCC-185 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant's county. FSA personnel assist applicants in completing their application forms. The SSFL processor must file a loan obligation with the State committee of the State where the processor is headquartered or with a county committee designated by the State committee. The processor must execute a note and security agreement, and storage agreement with CCC and provide quantity and quality information of the commodity to be used as collateral. FSA State and County Committees are authorized to approve a FSFL after applicants are determined eligible. SSFL processor must pay a loan service fee (determined by CCC) before loans are disbursed until the sugar and in-process sugar have actually been produced and guaranteed as being eligible to be pledged as loan collateral. Contact the headquarters or regional location, as appropriate for application deadlines The approval process may take from 2 to 6 weeks. Applicants for loans may appeal adverse actions taken against them. The applicant is given an opportunity to appeal the decision to the National Appeals Division. Appeal regulations are set forth in parts 11 and 789 of 7CFR. Not applicable. Not applicable. A FSFL is used to finance the purchase, construction, and/or upgrade of storage structures, storage and handling equipment and trucks--all eligible items may be new or used, permanently affixed or portable. The loan amount is limited to $500,000 per storage facility for a regular loan and a $50,000 aggregate balance for microloans. A SSFL will be used for the purchase and installation of eligible storage facilities, permanently affixed handling equipment or the remodeling of existing facilities to store raw or refined sugar. Eligible facilities and equipment include: 1) New conventional type bins or silos; 2) New flat-type storage structures, including a permanent concrete floor and bulkheads; 3) New storage structures; 4) New electrical equipment; 5) New equipment to improve, maintain, or monitor the quality of storage sugar; and 5) New concrete foundations, aprons, pits and pads, including site preparation, labor and material. Not applicable. Not applicable. Borrowers are required to annually submit proof, as applicable, of crop insurance, auto insurance, flood insurance, property insurance, hazard insurance, and property taxes. Applicants having custody of records required by CCC to operate FSFL and SSFL programs must retain financial books and records and other written or electronic data for not less than 3 years from the date a loan is disbursed, market data's are reported; or marketing's are conducted under marketing allotments. Statutory Formula: Title 7 Agriculture Chapter XIV Part 1436 Public Law 110-236

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. There are no restrictions placed on the time permitted to spend the money awarded. Method of awarding/releasing assistance: Lump. Consult the appropriate FSA State office where the property is located. For a list of FSA State offices with telephone numbers and addresses, information is available on the internet, visit FSA website at www.fsa.usda.gov to locate nearest office. Toni D. Williams
USDA-FSA-PSD, Stop 0512, 1400 Independence Ave., SW
Washington, DC 20250-0512 US
toni.williams@usda.gov
Phone: 202-720-2270 http://www.fsa.usda.gov/FSA/webapp?area=home&subject=prsu&topic=flp 12-4158-0-3-351 (Direct Loans) FY 22$484,200,000.00; FY 23 est $468,500,000.00; FY 24 est $568,500,000.00; FY 21$452,800,000.00; FY 20$410,000,000.00; FY 19$235,882,000.00; FY 18$245,952,000.00; FY 17$308,500,000.00; FY 16 est $180,000,000.00; - Not applicable/available. (1) A factsheet, press release, forms, and directives are available. Regulations at 7 CFR Part 1436 were published in the Federal Register under a final rule on August 18, 2009, amended on March 10, 2014 and on April 29, 2016. Not applicable.