The United States Department of Agriculture (USDA) is offering low-rate farm loans for building or upgrading farm storage and handling facilities. The Farm Storage Facility Loan (FSFL) is part of the USDA Commodity Credit Corporation (CCC).
Those looking to build storage for : corn, soybeans, oats, wheat, barley, oil seeds, pulse crops, renewable biomass, hay and fruits and vegetables (cold storage facilities).
Farm loans are available up to $500,000 and participants must put down at 15 percent and the CCC provides the remaining 85 percent for the total cost of the project. Farm loans are available for 7, 10 or 12 years depending on the total amount of the loan. As of April 2010 the rate is 3.125 percent.
The USDA advises producers to wait for farm loan approval before building the storage facilities just in case the application is denied.
For more information visit the Farm Service Agency’s Website or visit your local Farm Service Agency office.
Federal Reserve stated interest rates likely to rise. Refinance your farm loan before rates go up. Call a representative by dialing 866-929-5585 or visit us online.