The U.S. Department of Agriculture has announced the expansion of the Farm Storage and Facility Loan Program. The program provides low-interest financing to producers.

The enhanced program includes 22 new categories of eligible equipment for fruit and vegetable farmers and is designed to make it easier for farmers and ranchers to finance the equipment they need to grow and expand.

Producers with small and mid-sized operations and specialty crop fruit and vegetable growers will have access to needed capital for a variety of supplies including sorting binds, wash stations and other food safety-related equipment.

A new, more flexible alternative also is provided for determining storage needs for fruit and vegetable growers.

Waivers are available on case-by-case basis for disaster assistance or insurance coverage if available products are not relevant or feasible for a particular producer.

Food Storage and Facility Loan security requirements have been eased for loans between $50,000 and $100,000. Previously all loans in excess of $50,000 required a promissory note and additional security, such as a lien on real estate. Now loans up to $100,000 can be secured by only a promissory note.

The low-interest funds can be used to build or upgrade permanent facilities to store commodities. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables. Qualified facilities include grain bins, hay barns and cold storage facilities for fruits and vegetables.

Other changes in the loan program will allow Farm Service Agency state committees to subordinate Commodity Credit Corp.’s lien position.

Changes to the program were issued via an official notice to state and county FSA offices, effective immediately.

Source - http://www.parispi.net/