Ag producers might qualify for low-cost loans to increase storage capacity for their crops until they sell them under new USDA rules for an existing program.
Local hay producers might find them especially helpful, according to Keith Jensen, head of the Butte-Lawrence Farm Service Agency office in Belle Fourche.
"There are new regs with this old program that now allow for hay-storage facilities to qualify under the program," Jensen said.
According to a news release from Craig Schaunaman, state FSA executive director, Farm Storage Facility Loans may be available for these commodities:
- 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, such as lentils, small chickpeas, and dry peas.
- Hay.
- Renewable biomass.
- Fruits and vegetables - cold storage facilities specifically.
The program provides low-interest financing for producers of eligible commodities to build or upgrade farm storage and handling facilities. The maximum principal amount of a loan through the program is $500,000.
Participants are required to provide a down payment of 15 percent, with the U.S. Agriculture Department Commodity Credit Corporation providing a loan for the remaining 85 percent of the net cost of the eligible storage facility and permanent drying and handling equipment.
Loan terms of seven, 10 or 12 years are available. Interest rates for each term rate may be different and are based on the rate that the commodity corporation borrows from the Treasury Department.
A partial disbursement will be available after a portion of the construction has been completed. The final fund disbursement will be made when all construction is completed. The maximum amount of the partial disbursement will be 50 percent of the projected and approved total loan amount.
Applications for the program must be submitted to the FSA county office that maintains the farm's records.
More information is available at local FSA offices or online at www.fsa.usda.gov.
