FACT SHEET
UNITED STATES DEPARTMENT OF AGRICULTURE
IOWA FARM SERVICE AGENCY
April 2011
FARM STORAGE FACILITY LOAN PROGRAM
Low-interest Financing for producers to build or upgrade farm storage and handling facilities
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Steel Bin
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The maximum principal amount of a loan through FSFL 
is $500,000. Participants may qualify for multiple loans.
Participants are required to provide a minimum 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. Needed security is based on the loan
amounts and resale collateral value as determined by
CCC. Loan terms of 7, 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.
Eligible Commodities
The following commodities are eligible for farm storage
facility loans
 corn, grain sorghum, soybeans, oats, 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
 renewable biomass
 cold storage facilities for fruits and vegetable, including nuts
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structures designed for whole grain wet storage
new flat-type storage structures, with permanent
floors and bulkheads, designed to store whole grain
for the loan term
new electrical equipment integral to the proper operation of the grain storage and handling equipment
new safety equipment, such as interior and exterior
ladders and lighting
new equipment to improve, maintain or monitor
stored grain quality
new concrete foundations, aprons, pits and pads
renovation of existing farm storage facilities under
certain circumstances
new permanently affixed grain handling and drying
equipment
new bunker-type, horizontal or open silo structures
with at least two concrete walls and a concrete floor
new structures for storing hay
new structures for storing renewable biomass
new cold storage buildings, including prefabricated
buildings, suitable for storing fruits and vegetables
All eligible structures and
equipment must have a
useful life expectancy of
15 years.
Participant Eligibility
Eligible farm storage facility loan borrowers must:
 produce an eligible
facility loan commodity
 have a satisfactory
credit rating as determined by CCC
 demonstrate the abil- Steel Bin
ity to repay the loan
 possess no delinquent non-tax federal debt
Eligible Facilities and Upgrades
The following types of facilities and upgrades are eligi-  demonstrate a storage need based on the three-year
average acreage and share of production
ble for farm storage facility loans:
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provide proof of multi-peril insurance as well as all
 new conventional cribs or bins for whole grain storperil insurance on the structure.
age, new oxygen-limiting and remanufactured oxygen-limiting structures, and other upright silo-type  be in conservation compliance
Fact Sheet
Farm Storage Facility Loan Program
April 2011
 be in compliance with the National Environmental
Policy Act, as well as highly erodible land and wet- To Apply
Bring with you –
land provisions.
 current balance sheet and income statement (can use
something from your bank) or a Letter of Credit
Fees
from
your bank
 $100 nonrefundable application fee.
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estimated
costs of everything
 for loans over $50,000 – borrower pays for filing
 storage capacity you now own
fees, title opinion, and all attorney fees associated
 proof of crop insurance
with the loan.
 $100 application fee
Security for Loans
For hay or biomass storage – you must also provide a
In addition to 15% down and a UCC-1 filing to give
copy of building plan including proposed flooring prior
CCC first lien on the structure, CCC will file a real esto loan approval. The Extension service has several
tate mortgage on loans over $50,000. Participants may
available or you may provide your own.
use a letter of credit in lieu of a mortgage.
Loan will be based on the net cost to borrower of the:
 eligible facility
 accessories
 services
 net cost can include (but not limited to):
* purchase price
* tax
* shipping
* delivery
* site preparation
* installment or construction costs
* cement work
* electrical work
* paid labor (can’t include the borrower’s own
labor)
Down Payment
 Minimum of 15%
 Must be in cash and paid to supplier or contractor
prior to loan disbursement and cannot include: discounts, rebates, credit deferred payment, credit by
supplier, trade in, or sweat equity
Hay Storage
You cannot begin site preparation or accept delivery
of bin or storage facility until the loan is approved.
FSA will inspect the facility site prior to loan approval.
For More Information
For more information about this program, contact your
local FSA office or visit the web at fsa.usda.gov.
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USDA is an equal opportunity provider, employer and
lender. To file a complaint of discrimination, write to
USDA, Assistant Secretary for Civil Rights, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 202509410, or call toll-free at (866) 632-9992 (English) or
(800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay).