Serving Minnesota and Northern Iowa.

Farm Storage Facility Loan Program Interest Rate at 1 percent

By Ryan Castle
ryan.castle@mn.usda.gov

Date Modified: 10/29/2012 3:28 PM

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Producers are encouraged to take advantage of historically low interest rates under the Farm Storage Facility Loan Program through their local Farm Service Agency County Office. The interest rate for Facility Loans approved in the month of August is 1 percent.

The Farm Storage Facility Loan Program provides low interest financing to producers for building and upgrading farm storage and handling facilities for either grain or hay

The new maximum loan amount is $500,000 and the interest rates vary by the term of the loan. Loan terms can range from seven to 12 years depending on the size of the loan.

The new rules allow for one partial disbursement if requested by the producer. The partial disbursement can be an amount up to 50 percent of the projected and approved loan amount not to exceed $250,000.

Loans that exceed $50,000 will require additional security such as a lien on real estate or a Letter of Credit.

The following are the term options:

• $100,000 or less, the term is seven years only

• $100,000.01 to $250,000, the producer can specify either seven or 10 years

• $250,000.01 to $500,000, the producer can specify either seven, 10 or 12

years

The following are the interest rates for the month of August. The interest rates are locked in for the life of the loan in the month the loan is approved by the County Committee:

• seven year term - 1 percent

• 10 year term - 1.625 percent

• 12 year term - 1.875 percent

The following are eligible equipment:

• New grain bins, cribs and structures for hay storage

• New oxygen limiting and other upright silos

• New flat type storage structures

• New handling equipment such as grain legs and air transfer systems

• New drying equipment such as grain dryers

• New electrical equipment such as lighting, motors, wiring, etc...

• Renovating existing structures - such as new concrete pads, full

aeration floors, new rings on existing bins, upgrading and repairing grain

legs, etc…

• New components of used structures that are purchased and moved to a new

location.

Contact your FSA County office for more information.