10.056: Farm Storage Facility Loans

10.056

Active

Farm Service Agency (FSA) [USDA]

Aug. 10, 2022

Aug. 10, 2022

The Farm Storage Facility Loan (FSFL) Program provides low-interest financing for producers to build, upgrade, or acquire farm storage and handling facilities, storage and handling equipment and trucks. The following commodities are eligible for on-farm storage, drying and handling equipment: corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, or minor oilseeds harvested as whole grain; corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain; pulse crops (lentils, chickpeas and dry peas); hay; honey; renewable biomass; fruits (includes nuts) and vegetables - cold storage facilities; aquaculture (excluding systems that maintain live animals through uptake and discharge of water); floriculture; hops; milk; rye; meat and poultry (unprocessed); eggs; cheese, butter and yogurt. The loan must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition 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. The SSFL program provides loans to processors of domestically produced sugarcane and sugar beets for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars.

E - Direct Loans

An eligible FSFL borrower is any person who, as landowner, landlord, operator, producer, tenant, leaseholder, or sharecropper: (1) Has a satisfactory credit history and demonstrates an ability to repay the debt arising under this program using a financial statement acceptable to CCC prepared within 90 days of the date of application; (2) has no delinquent Federal debt defined by the Debt Collection Improvement Act of 1996 at the time of loan disbursement; (3) is a producer of a facility loan commodity as defined by CCC; (4) demonstrates a need for storage capacity as defined by CCC; (5) provides proof of crop insurance offered under the Federal Crop Insurance Program for crops of economic significance on all farms operated by the borrower in the county where the storage facility is located; (6) is in compliance with USDA provisions for highly erodible land and wetlands provisions according to 7 CFR Part 12; (7) demonstrates compliance with any applicable local zoning, land use, and building codes for the applicable farm storage facility structures; (8) provides proof of flood insurance if CCC determines such insurance is necessary to protect the interests of CCC, and proof of all peril structural insurance, to CCC annually; (9) demonstrates compliance with the National Environmental Policy Act regulations at 40 CFR, Parts 1500- 1508; and (10) has not been convicted under Federal or State law of a controlled substance violation under 7 CFR Part 718. An eligible producer is the owner of a part or all of the domestically-grown sugar beets or sugarcane, including share rent landowners, at both the timer of harvest and the time of delivery to the processor. A sugar beet or sugarcane processor is eligible for loans only if the processor has agreed to all the terms and conditions in the loan application, and has executed a note and security agreement, and storage agreement with the Commodity Credit Corporation (CCC). Processors must: 1) Have a satisfactory credit history; 2) Demonstrate a need for increased storage capacity; 3) Demonstrate compliance with an applicable local zoning, land use and building codes; 4) Annually provide CCC proof of all-peril insurance on the structure; 5) Demonstrate compliance with the National Environmental Policy Act; 6) Not have been convicted under federal or State law of disqualifying controlled substance violation; and 7) Be approved by CCC to store sugar either owned or pledged as security to CCC. SSFL must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition 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.

Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Landowners, landlords, operators, producers, tenants, leaseholders, or sharecroppers are the beneficiaries. The authorized SSFL will be used by the processor for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars.

https://sam.gov/fal/b867ac30aa6a4906a5b6cf37fb209d8d/view