FSA Loans for Farm Storage Facilities

FSA Loans are designed to offer low-interest loans to farmers so that they may upgrade or build handling facilities and farm storage. 

The Farm Storage Facility Loan Program

The Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA) runs the Farm Storage Facility Loan Program, which provides assistance for the producers of our farming commodities. The FSA operates this agricultural loan program through the USDA’s Commodity Credit Corporation (CCC). 

Eligibility

Only certain types of facilities are eligible for FSA loans. In order to receive a loan, the facility must be approved by the local FSA county committee. Some of the facilities that are eligible are new conventional type cribs, bins that have a 10- year life expectancy, and new oxygen-limiting silos that offer whole grain wet storage and a 10-year life expectancy. 

Summing It All Up

A farmer can only borrow up to $100,000 through a Farm Storage Facility Loan Program. The loan only covers 85% of the projected building or upgrade costs and as a result the farmer has to put up 15%. The term of a FSA loan is 7 years.