Small Loans for Equipment Upgrades From USDA’s FSA Farm Storage Facility Loan Program

— Written By Chris Gunter

USDA FSA FSFL program is another option with low-interest loans.

The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade facilities to store commodities. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable.

Since its inception in May 2000, more than 33,000 loans have been issued for on-farm storage, increasing storage capacity by 900 million bushels.

FSFL is an excellent financing program for on-farm storage and handling for small and mid-sized farms, and for new farmers. Loan terms vary from 3 to 12 years. The maximum loan amount for storage facilities is $500,000. The maximum loan amount for storage and handling trucks is $100,000. In 2016 FSA introduced a new loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5 percent down payment requirement, compared to a 15 percent down payment for a regular FSFL, and waive the regular three-year production history requirement.

Read the fact sheet on the Farm Storage Facility Loan Program. The FSFL Fact Sheet contains information regarding:

  • Eligible facilities loan commodities
  • Eligibility facilities and upgrades
  • Eligible cost items
  • Eligibility requirements
  • Security requirements
  • Maximum loan amount
  • Facility Loan Terms
  • Cost of obtaining a loan
  • Persons required to sign the note
  • Where to file the application
  • Other pertinent information on the FSFL Program.

Application Form

CCC-0185 (pdf) – Loan Application and Approval for Farm Storage and Drying Equipment Loan Program

Final Rule

7CFR 1436

SUMMARY: The Farm Service Agency (FSA) administers the FSFL Program on behalf of the Commodity Credit Corporation (CCC). This rule amends the FSFL Program regulations to add eligibility for portable storage structures, portable equipment, and storage and handling trucks, and to reduce the down payment and documentation requirements for a new “microloan” category of FSFLs up to $50,000. These changes are intended to address the needs of smaller farms and specialty crop producers. This rule also includes technical and clarifying changes that are consistent with how the FSFL Program is already implemented, including specifying commodities that are already eligible for FSFLs but are not currently listed in the regulations, and changing the required life span of the storage facility from a minimum of 15 years to a minimum of the  FSFL term, plus any extensions.

DATES: This rule is effective April 29, 2016.

Related Notices and Handbook(in pdf)

Interest Rates

The August 2019 CCC lending rates are: FSFL Rates

  • 1.750% for Farm Storage Facility Loans with 3-year loan terms
  • 1.750% for Farm Storage Facility Loans with 5-year loan terms
  • 1.875% for Farm Storage Facility Loans with 7-year loan terms
  • 2.000% for Farm Storage Facility Loans with 10-year loan terms
  • 2.125% for Farm Storage Facility Loans with 12-year loan terms