Farm Service Agency (FSA) provides low-interest financing for producers who need additional storage or would like to renovate existing storage. The Farm Storage Facility Loan (FSFL) Program provides low-interest financing for producers of eligible commodities to build or upgrade farm storage and handling facilities.
The program helps to ensure that producers have adequate capacity to store their harvested production until they sell it on the open market. These loans can be for new construction or expansion of existing facilities, including bunker-type silage structures, hay sheds, permanent drying and grain handling equipment. Applicants must show a need for additional storage. Producers may not accept delivery or begin site preparation prior to approval, but may sign purchase agreements or pay for the facilities prior to loan approval.
The maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a down payment of 15 percent, with CCC providing a loan for the remaining 85 percent of the net cost. Loan terms of 7, 10 or 12 years are available depending on the amount of the loan. The Current interest rate for February is 2.75% for a seven year loan. Participants are required to provide:
� A Current financial statement and cash flow showing repayment ability.
� A $100.00 non-refundable application fee and have the ability to make the 15% down payment.
� Proof of Crop insurance coverage on all crops of significance.
� Insurance on structure with FSA/CCC listed as loss payee.
2011 DCP & ACRE Signup
Signup has started for the 2011 Direct and Counter-cyclical Payment (DCP) Program and for the Average Crop Revenue Election (ACRE) Program. Participants are required to sign the CCC-509 annually. All owners will need to sign the contract unless the operator has a written cash lease. Signup will continue until June 1, 2011. The June 1, 2011, deadline is mandatory for all participants. FSA will not accept any late-filed applications.
CRP an Alternative to Planting Wetlands
The Conservation Reserve Program (CRP) provides several practices that are designed to restore wetland practices. With excess moisture conditions over the past couple of years it may be advantageous for producers to consider one of the CRP wetland practices instead of trying to plant a crop in these areas.
CRP offers several wetland practices through CRP Continuous Signup, the Farmable Wetland Program (FWP), and the Conservation Wetland Restoration Program. All CRP contracts are for 10 to 15 years. In addition to the wetlands, participants can place upland along with the wetland between a 3 to 1 and 10 to 1 ratio depending on the practice used. Participants will earn an annual payment equal to the counties' average dryland cash rent plus an additional 20 percent increase for the productive factor of the soils contained within the offer and a Signing Incentive Payment (SIP) of $100 per acre will apply to most contracts. FSA pays 50% cost share for eligible costs of establishing a grass seeding and a Practice Incentive Payment (PIP) equal to 40% of the cost share will apply.
Additional information about the Conservation Reserve Program, or any other program administered by FSA may be found online at www.fsa.usda.gov.