Loan Resources for Farm Commodities Storage
March 30, 2020
In light of the uncertainty in the organic grain markets and others, the Wisconsin Organic Advisory wants to let producers know about the following two loan programs available. Having the capacity to store commodities allows for more options in terms of marketing, which can be very valuable in these times of depressed commodity prices.
The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade facilities to store commodities. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable. Interest rates are 0.75-1.125%. https://www.fsa.usda.gov/programs-and-services/price-support/facility-loans/farm-storage/index
The Non-Recourse Marketing Assistance Loan is a program focusing on marketing assistance loans to provide producers interim financing at harvest time to meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. Allowing producers to store production at harvest, facilitates more orderly marketing of commodities throughout the year. https://www.fsa.usda.gov/programs-and-services/price-support/commodity-loans/index