FACT SHEET
UNITED STATES DEPARTMENT OF AGRICULTURE
IOWA FARM SERVICE AGENCY
May 2012
Farm Storage Facility Loan Program
Cold Storage Facilities for Fruits, Vegetables, and Nuts
A cold storage facility is defined as a facility, or rooms
within a facility, that are specifically designed and constructed for the cold temperature storage of perishable
commodities. The temperature and humidity in these
facilities must be able to be regulated to specified conditions required for the commodity that is being stored.
or installed for the entire term
of the loan.
Cold storage facilities must
have at least a 15 year useful
life. Structures must be suitable for storing the proApplicants must show a need for cold storage capacity. ducer’s fruits and vegetables
The cold storage needs will be determined based on pro- and include the following
duction from 1 year.
eligible facilities:
 New cold storage facility
The maximum principal amount of a loan through FSFL
of wood pole and post
is $500,000. Participants may qualify for multiple loans.
construction, steel, or
concrete
Participants are required to provide a minimum down
 New walk-in prefabripayment of 15 percent, with CCC providing a loan for
cated, permanently inthe remaining 85 percent of the net cost of the eligible
stalled cold storage coolstorage facility. Needed security is based on the loan
ers
amounts and resale collateral value as determined by
CCC. Loan terms of 7, 10 or 12 years are available
The following types of permanently affixed equipment
depending on the amount of the loan. Interest rates for
necessary for a cold storage facility are eligible for farm
each term rate may be different and are based on the rate storage facility loans:
which CCC borrows from the Treasury Department.
 Refrigeration units or system
 Circulation fans
Eligible Commodities
 Electrical equipment, such as lighting, motors, and
The following is a partial listing of the eligible fruits and
wiring integral to the proper operation of a cold
vegetables eligible for cold storage facility loans. For a
storage facility
more complete listing, contact your local FSA Office.
 Safety equipment meeting OSHA requirements
 Apples
 Cement flooring
 Asparagus
 Beans
Participant Eligibility
 Carrots
Eligible farm storage facility loan borrowers must:
 Corn
 produce an eligible facility loan commodity
 Herbs
 have a satisfactory credit rating as determined by
 Kohlrabi
CCC
 Onions
 demonstrate the ability to repay the loan
 Peppers
 possess no delinquent non-tax federal debt
 Squash
 demonstrate a storage need based on the three-year
average acreage and share of production
 Strawberries

provide proof of multi-peril insurance as well as all
 Watermelon
peril insurance on the structure.
 be in conservation compliance
Eligible Facilities
 be in compliance with the National Environmental
and Upgrades
Policy Act, as well as highly erodible land and wetFSFL financed cold storage structures must be used for
land provisions.
the purpose for which they were constructed, assembled,
Fact Sheet
Farm Storage Facility Loan Program
Fees
 $100 nonrefundable application fee.
 for loans over $50,000 – borrower pays for filing
fees, title opinion, and all attorney fees associated
with the loan.
Security for Loans
In addition to 15% down and a UCC-1 filing to give
CCC first lien on the structure, CCC will file a real estate mortgage on loans over $50,000. Participants may
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
To Apply
Bring with you –
 current balance sheet and income statement (can use
something from your bank) or a Letter of Credit
from your bank
 estimated costs of everything
 storage capacity you now own
 proof of crop insurance
 $100 application fee
You cannot begin site preparation or accept delivery
of 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.
May 2012
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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).