Farm Storage Facility Loans

To encourage the construction of on farm grain storage capacity and to help farmers adapt to identity preserved storage and handling requirements for genetically enhanced production.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - Consult the appropriate FSA State office listed in Appendix IV of the Catalog.

Relevant Nonprofit Program Categories

Program Accomplishments

Not available.

Uses and Use Restrictions

Loans are used to finance the purchase and construction of new storage structures, handling equipment and drying equipment, and to finance the remodeling of existing storage structures.

The loan amount is limited to $100,000 times the number of borrowers liable for each loan.

Eligibility Requirements

Applicant Eligibility

An eligible borrower is any person who, as landowner, landlord, operator, producer, tenant, leaseholder, or sharecropper: (1) Has a satisfactory credit history and demonstrates an ability to repay the debt arising under this program using a financial statement acceptable to CCC prepared within 90 days of the date of application; (2) has no delinquent Federal debt defined by the Debt Collection Improvement Act of 1996 at the time of loan disbursement; (3) is a producer of a facility loan commodity as defined by CCC; (4) demonstrates a need for increased storage capacity as defined by CCC if the applicant is applying for a loan for a storage structure; (5) provides proof of crop insurance offered under the Federal Crop Insurance Program for crops of economic significance on all farms operated by the borrower in the county where the storage facility is located; (6) is in compliance with USDA provisions for highly erodible land and wetlands provisions according to 7 CFR Part 12; (7) demonstrates compliance with any applicable local zoning, land use, and building codes for the applicable farm storage facility structures; (8) provides proof of flood insurance if CCC determines such insurance is necessary to protect the interests of CCC, and proof of all peril structural insurance, to CCC annually; (9) demonstrates compliance with the National Environmental Policy Act regulations at 40 CFR, Parts 1500- 1508; and (10) has not been convicted under Federal or State law of a controlled substance violation under 7 CFR Part 718.

Beneficiary Eligibility

Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Landowners, landlords, operators, producers, tenants, leaseholders, or sharecroppers are the beneficiaries.


Applicants must establish that they have a need for additional storage capacity. The applicant must establish that he has the ability to repay the loan. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination


This program is excluded from coverage under OMB Circular No.

A-102 and E.O.


Application Procedures

Application Form CCC-185 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant's county. FSA personnel assist applicants in completing their application forms. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

FSA State and County Committees are authorized to approve these loans after applicants are determined eligible.


Applications must be filed at least 15 calendar days in advance of the day when the FSA County Committee meets. Loan approvals by the FSA County Committee expire 4 months after the approval date unless extended for up to another 4 months.


15 U.S.C. 714, et seq.

Range of Approval/Disapproval Time

The approval process may take from 2 to 6 weeks.


Applicants for loans may appeal adverse actions taken against them. The applicant is given an opportunity to appeal the decision to the National Appeals Division.


The loan term is 7 years. The term of the loan may not be extended. The loan is repaid in equal annual installments of principal and interest amortized over the loan term.

Assistance Considerations

Formula and Matching Requirements


Length and Time Phasing of Assistance

The amount of the loan is determined after construction takes place. A 15 percent down payment is required. The loan is disbursed by check as soon as the cost is determined, all loan documents have been prepared and all security documents have been filed.

Post Assistance Requirements


Borrowers are required to maintain the collateral in good condition and to keep property taxes and insurance current.


Collateral is inspected by CCC annually.


Borrowers are required to annually submit proof of crop insurance, flood insurance (if applicable), hazard insurance, and property taxes.

Financial Information

Account Identification

12-4158-0-3-351; 12-3301-0-1-351.


(Direct Loans) FY 07 est $1,238,327; FY 08 est not available; and FY 09 est not reported.

Range and Average of Financial Assistance

From $1000 to $100,000.

Regulations, Guidelines, and Literature

(1) A fact sheet, press release, forms, and directives are available. Regulations at 7 CFR Part 1436 were first published in the Federal Register under an interim rule on May 11, 2000. After comments were evaluated, regulations at 7CFR Part 1436 were revised with the publication of a final rule on January 18, 2001.

Information Contacts

Regional or Local Office

Consult the appropriate FSA State office listed in Appendix IV of the Catalog.

Headquarters Office

Farm Service Agency, Director, Price Support Division, 14th and Independence Ave., SW., Washington, DC 20250. Telephone: (202) 720-7935.

Criteria for Selecting Proposals

Not applicable.

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