The Farm Storage Facility Loan program has been around for 15 years.

FSFL provides low-interest loans for producers to construct new silos, grain bins and hay storage structures. FSFL structures can be built large enough to store two years’ worth of production.

Loan proceeds can be used for all aspects of each project: excavation, concrete, stone, off-farm labor, electric work, etc. Loan terms can be seven, 10 or 12 years, depending on the loan amount. The interest rate in January was 2.0 percent for a seven-year loan. The loan application fee is $100/applicant.

This has been a very popular FSA program over the past 15 years and recently changes were made to include new eligible facilities.

The new commodities eligible for facility loans include floriculture, hops, rye, milk, cheese, butter, yogurt, meat and poultry (unprocessed), eggs, and aquaculture (excluding systems that maintain live animals through uptake and discharge of water).

Commodities already eligible for the loans include corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, minor oilseeds harvested as whole grain, pulse crops (lentils, chickpeas and dry peas), hay, honey, renewable biomass, and fruits, nuts and vegetables for cold storage facilities.

Producers do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.

To learn more about the FSA Farm Storage Facility Loan, visit www.fsa.usda.gov/pricesupport or contact your local FSA county office. To find your local FSA county office, visit http://offices.usda.gov.

Luke Fritz is executive director of the Butler County Farm Service Agency.