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Whether a small poultry farm or a large grain producer, you could benefit from some new equipment and storage facilities. Below, we’ll explain how you can get the permanent infrastructure your farm needs from the Farm Storage Facility Loan (FSFL) program!
What Is the FSFL Program?
The FSFL program is a government program from the Farm Service Agency (FSA) designed to help farms big and small afford the expensive infrastructure, handling, and storage equipment that modern-day farms need to survive. Any farmer will tell you that the financial benefits of on-farm grain storage are exceptional. It gives farmers more flexibility in the market and cuts down on expenses like trucking and grain elevator storage.
But not every farmer, especially of small and midsize farms, can afford the costs of building and maintaining these structures and equipment. But with the FSFL program, farmers can get a low-interest loan of up to $500,000 toward this vital infrastructure and equipment. Since 2000, the FSFL program has handed out over 30,000 loans to farmers in the US!
There are many eligible uses for these loans, including:
- Grain storage cribs, bins, and silos
- Grain drying equipment
- Packing sheds
- Seed cotton handling, storage, and transport equipment
- Fruit and vegetable washing equipment (baggers, batch dryers, hoppers, etc.)
Who Is Eligible for the FSFL Program?
This program sounds great, but who is eligible to receive these loans? The FSFL program is designed to be used by as many farmers in the US who need them and are capable of repaying these very favorable loans. You’re likely eligible if you produce an eligible commodity, demonstrate a storage need on the farm, and have a satisfactory credit rating.
Farmers need some other requirements to qualify for the program, like all-peril and multi-peril insurance, but most farmers already have such insurance anyway. Commodities that qualify for FSFL program assistance include:
- Tree sap
How Do I Apply for the FSFL Program?
Interested in getting a loan to upgrade or install some new equipment? The application process for the FSFL program is quite straightforward—farmers can apply at the local FSA office with their farm’s records on file and apply in person.
If you’re unsure of what office has your farm’s files, you can easily find them online with one of the many FSA service centers and office locators. The application form for the FSFL program is called CCC Form 0185, and you can also find it online if you’d like to look at it before applying.
We hope our guide has helped explain the Farm Storage Facility Loan program in simple and easy-to-understand terms! If your farm could benefit from new equipment or storage infrastructure, consider applying to the FSFL program!