|
Farm storage loans available in area
LEXINGTON - Christopher S. Ashby, Executive Director for USDA's Farm Service Agency office in Lexington, which serves Rockbridge, Alleghany, and Bath counties, reminded farmers and ranchers that FSA can help with their farm storage needs with a Farm Storage Facility Loan.
"At a time when commercial storage facilities are at maximum capacity and charging premium rates nationwide, on-farm storage provides producers with an attractive alternative," said Ashby.
The Farm Service Agency offers seven-year, low-interest loans to producers to build new or upgrade existing storage facilities and related essential, permanently affixed drying or handling equipment. Loan opportunities include, but are not limited to:
¦ New conventional-type cribs or bins, oxygen-limiting and other upright silo-type structures, and flat-type storage structures designed for whole grain storage.
¦ Perforated floors, safety equipment, quality improvement equipment, electrical equipment and concrete components considered essential for a fully functional storage facility.
¦ Remodeling existing storage facilities to increase storage capacity.
According to Ashby, marketing flexibility is the primary benefit gained from on-farm storage facilities.
"Privately owned facilities give producers control over where and when they sell their crops, increasing their odds of receiving the best price for their crop," said Ashby.
Farm storage facility loans must be approved prior to site preparation, equipment purchase or construction, and must be secured by a promissory note and security agreement. Special provisions apply for loans exceeding $50,000.
The maximum loan amount will be 85 percent of the net cost of the applicant's needed storage or handling equipment, not to exceed $100,000 per borrower. A minimum down payment to the supplier or contractor is required to bridge the gap between the net cost of the storage facility and the loan amount. Fixed interest rates on farm storage facility loans are equivalent to the rate of interest charged on U.S. Treasury Securities of comparable maturity on the date the loan is approved. As of October, the annual interest rate is 4.375 percent.
"Knowing you have on-site storage gives producers peace-ofmind, allowing time to develop progressive, lucrative marketing strategies," said Ashby.
For detailed applicant and facility eligibility criteria regarding Farm Storage Facility Loans, and to schedule an appointment to file an application, contact the Rockbridge/Alleghany/Bath county office at (540) 463-7124,.
| 
