California Farm Service
Agency Offers Low-interest Storage Loans
USDA California Farm Service Agency
(FSA) Executive Director, Val Dolcini,
State Executive Director, reminds farmers and ranchers that Farm StorageFacility Loans (FSFL) are available through FSA.
The Farm Service Agency offers
low-interest loans to grain producers to build new or upgrade existing storage
facilities and permanent drying and handling equipment. Loan opportunities
include, but are not limited to:
- New conventional-type cribs or bins,
oxygen-limiting and other upright silo-type structures, and flat-type storage
structures designed for whole grain storage
- Perforated floors, safety equipment,
quality improvement equipment, electrical equipment and concrete components considered
essential for a fully functional storage facility
- Remodeling existing storage facilities
to increase storage capacity.
Farm storage facility loans must be
approved prior to site preparation, equipment purchase or construction, and
must be secured by a promissory note and security agreement. The new maximum
principal loan amount is $500,000. Participants are required to provide a down
payment of 15 percent, with CCC providing a loan for the remaining 85 percent
of the net cost of the eligible storage facility and permanent drying and
handling equipment.
Additional security is required for
poured-cement open-bunker silos, renewable biomass facilities, cold storage
facilities, and hay barns for all loans exceeding $50,000. New loan terms of seven,
10 or 12 years are available depending on the amount of the loan. Interest
rates for each term rate may be different and are based on the rate, which CCC
borrows from the Treasury Department.
Labels: California Farm Service Agency Offers Low-interest Storage Loans, FSA FSFL, USDA Farm Storage Loans Available
