MISSOURI — Farm Storage Facility Loans (FSFLs) provide low-interest financing for producers to store, handle, and/or transport eligible commodities they produce. KMZU’s Denny Campbell was able to catch up with Rebecca Walker, with the Carroll County Farm Service Agency.

Click below to hear their conversation, which aired Tuesday on KMZU.


This includes: acquiring, constructing, or upgrading new or used, portable or permanently affixed, on-farm storage and handling facilities; acquiring new or used storage and handling trucks; and acquiring portable or permanently affixed storage and handling equipment.

This program, which is administered by the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA), allows producers to borrow up to $500,000 per loan, with a minimum down payment of 15 percent and up to 12 year terms. Microloan options are also available, which allows producers to borrow up to $50,000 with a five percent minimum down payment and shorter loan term. Both loans require documentation, but the microloan requires reduced documentation.

The mixture of the loan conditions and the reduced documentation required makes the microloan of particular interest to new or small producers.
Milk, hay, hops, unprocessed meat/poultry, rye, fruits, and vegetables are just a few of the eligible commodities.

New/used facilities and upgrades must have a useful life for at least the term of the loan. The facilities and upgrades include, but are not limited to: conventional cribs or bins; safety equipment, such as interior and exterior ladders and lighting; storage and handling trucks, including refrigerated trucks; equipment to improve, maintain, or monitor the quality of stored grain; and structures suitable for storing hay built according to acceptable design guidelines.

Among other examples of equipment are: beggars, circulation fans, conveyors, hydrocoolers, ice machines, sealants, and weight graders are also eligible. An eligible borrower is any person who is a landowner, landlord, leaseholder, tenant, or sharecropper. Eligible borrowers must be able to show repayment ability and meet other requirements to qualify for a loan.

These loans must be approved by the local FSA state or county committee before and site preparation and/or construction can be started. All loan requests are subject to an environmental evaluation. Accepting delivery of equipment, starting any site preparation or construction before loan approval may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility.

Eligible storage structures, and handling equipment, having a useful life for the entire term of the loan, may be permanently affixed or portable. Facilities built for commercial purposes and not for the sole use of the borrower(s) are not eligible for financing.

Loan applications should be filed in the administrative FSA county office that maintains the farm’s records. Applicants for all loans will be charged a nonrefundable $100 application fee.

For more information about FSFLs, visit the USDA’s website or contact your local FSA office.