Farm Storage Facility Loans

The Farm Storage Facility Loan (FSFL) Program provides low-interest financing for producers to build, upgrade, or acquire farm storage and handling facilities, storage and handling equipment and trucks.

The following commodities are eligible for on-farm storage, drying and handling equipment:

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corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley, or minor oilseeds harvested as whole grain; corn, grain sorghum, wheat, oats or barley harvested as other-than-whole grain; pulse crops (lentils, chickpeas and dry peas); hay; honey; renewable biomass; fruits (includes nuts) and vegetables - cold storage facilities; aquaculture (excluding systems that maintain live animals through uptake and discharge of water); floriculture; hops; milk; rye; meat and poultry (unprocessed); eggs; cheese, butter and yogurt.

The loan must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition can be started.

All loan requests are subject to an environmental evaluation.

Accepting delivery of equipment, starting any site preparation, or construction before loan approval, may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility.

The SSFL program provides loans to processors of domestically produced sugarcane and sugar beets for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars.

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 - See Regional Agency Offices.

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

Relevant Nonprofit Program Categories

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

A FFSL is used to finance the purchase, construction, and/or upgrade of storage structures, storage and handling equipment and trucks--all eligible items may be new or used, permanently affixed or portable.

The loan amount is limited to $500,000 per storage facility for a regular loan and a $50,000 aggregate balance for microloans.

A SSFL will be used for the purchase and installation of eligible storage facilities, permanently affixed handling equipment or the remodeling of existing facilities to store raw or refined sugar.

Eligible facilities and equipment include: 1) New conventional type bins or silos; 2) New flat-type storage structures, including a permanent concrete floor and bulkheads; 3) New storage structures; 4) New electrical equipment; 5) New equipment to improve, maintain, or monitor the quality of storage sugar; and 5) New concrete foundations, aprons, pits and pads, including site preparation, labor and material.

The following are security requirements for farm storage facility loans: All loans must be secured by a promissory note and security agreement, as well as a UCC-1 describing the storage facility and accompanying equipment; and severance agreements from all lien holders on the real estate where the facility will be located or from owners of real estate when the loan applicant is not the landowner, except when CCC holds the first lien on the real estate.

For loans with an aggregate outstanding loan balance less than $100,000, severance agreements will not be required if the borrower increases the down payment from 15 percent to 20 percent.

For loans that exceed $100,000 or the borrower's aggregate outstanding loan balance exceeds $100,000, the borrower must be able to provide at least one of the following: A first lien on the real estate on which the facility is located; Real estate owned by the borrower other than where the facility is located, provided the real estate offered is sufficient to secure the loan; or An irrevocable letter of credit from a financial institution in an amount sufficient to protect CCC's interest for each year the loan has an outstanding balance.

Facility Loan Terms.

The following are the terms for farm storage facility loans: A 15 percent minimum down payment is required for regular loans and 5 percent for microloans; thus, CCC's loan is limited to 85 percent (for regular loans), or 95 percent (for microloans), of the net cost of the eligible storage facility and permanent drying and handling equipment (subject to the applicant's storage needs test).

The down payment cannot include any trade-in, discount, rebate, deferred payment, or post-dated check.

Loan terms available are three (3), five (5), seven (7) years, ten (10) years or twelve (12) years depending on the amount of the loan.

Interest rate is fixed for the loan term based on the rate in effect during the month the loan is initially approved.

The interest rate is equivalent to the rate of interest charged on Treasury Securities of comparable term and maturity.

Loans are to be repaid in equal amortized annual installments.

Loan will not be disbursed until after the purchase or the facility has been erected and inspected with the exception of one (1) qualifying partial disbursement, once 50 percent of the facility has been completed at a maximum amount of 50 percent of the approved loan amount, not to exceed $250,000.

Cost of Obtaining a Loan.

Each applicant will be charged a nonrefundable $100 application fee.

CCC will pay all collateral lien searches and recording fees for filing Form UCC-1 and credit reports.

Applicants pay all other fees, such as severance agreements, attorney fees, real estate lien search fees, and instrument filing fees.

For loans that require additional security and/or are greater than $50,000, applicants will be required to pay the cost of obtaining a title search/opinion or title insurance.

Persons Required to Sign the Note.

The following persons are required to sign the loan agreement: For sole proprietorships and joint ventures, all individuals, including spouses, if applicable.

For general partnerships, any member unless the Articles of Partnership are more restrictive.

For corporations and limited partnerships, an individual with signature authority on file with FSA. The maximum tern for a SSFL is 15 years.

No extensions will be granted.

Additional terms and conditions are set forth in the loan application and note and security agreement that a processor must execute to receive a loans.

Eligibility Requirements

Applicant Eligibility

A FSFL 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 storage capacity as defined by CCC; (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. An eligible producer is the owner of a part or all of the domestically-grown sugar beets or sugarcane, including share rent landowners, at both the timer of harvest and the time of delivery to the processor. A sugar beet or sugarcane processor is eligible for loans only if the processor has agreed to all the terms and conditions in the loan application, and has executed a note and security agreement, and storage agreement with the Commodity Credit Corporation (CCC).

Processors must: 1) Have a satisfactory credit history; 2) Demonstrate a need for increased storage capacity; 3) Demonstrate compliance with an applicable local zoning, land use and building codes; 4) Annually provide CCC proof of all-peril insurance on the structure; 5) Demonstrate compliance with the National Environmental Policy Act; 6) Not have been convicted under federal or State law of disqualifying controlled substance violation; and 7) Be approved by CCC to store sugar either owned or pledged as security to CCC. SSFL must be approved by the local FSA state or county committee before any site preparation, construction, and/or acquisition can be started.

All loan requests are subject to an environmental evaluation.

Accepting delivery of equipment, starting any site preparation, or construction before loan approval, may impede the successful completion of an environmental evaluation and may adversely affect loan eligibility.

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. The authorized SSFL will be used by the processor for the construction or upgrading of storage and handling facilities for raw sugars and refined sugars.


Applicants must establish that they have a need for the storage capacity for for structures. There is no need to establish the storage need for handling equipment and trucks. The applicant must establish that he/she has the ability to repay the loan. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

An environmental impact assessment is required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. FSFL 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. The SSFL processor must file a loan obligation with the State committee of the State where the processor is headquartered or with a county committee designated by the State committee. The processor must execute a note and security agreement, and storage agreement with CCC and provide quantity and quality information of the commodity to be used as collateral.

Award Procedures

FSA State and County Committees are authorized to approve a FSFL after applicants are determined eligible. SSFL processor must pay a loan service fee (determined by CCC) before loans are disbursed until the sugar and in-process sugar have actually been produced and guaranteed as being eligible to be pledged as loan collateral.


Contact the headquarters or regional office, as appropriate, for application deadlines.


Food, Conservation, and Energy Act of 2008, Title 1, Part Subtitle 5, Section 1614, 7 U.S.C 7971, 8789, as amended by Food. Conservation, and Energy Act of 2008, Title 1, Section 1402; CCC Charter Act, 15 U.S.C 714.

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. Appeal regulations are set forth in parts 11 and 789 of 7CFR.


The loan term is 3, 5, 7, 10, or 12 years. The term of the loan may be extended only as an authorized exception. The loan is repaid in equal annual installments of principal and interest amortized over the loan term.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title Title 7 Agriculture, Chapter XIV, Part 1436, Public Law 110-236. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

There are no restrictions placed on the time permitted to spend the money awarded. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements


Applicants shall report, by the 20th of each month, on CCC-required forms, its imports and receipts, processing inputs, production, distribution, stocks, and other information necessary to administer the sugar programs.

If the 20th of the month falls on a weekend or a Federal holiday, the report shall be due the next business day. By November 20 of each year, applicants will submit to CCC a report, as specified by CCC, from an independent Certified Public Accountant that reviews its information submitted to CCC during the previous October 1 through September 30 period.

No cash reports are required.

No progress reports are required.

No expenditure reports are required.

No performance monitoring is required.


No audits are required for this program.


Borrowers are required to annually submit proof, as applicable, of crop insurance, auto insurance, flood insurance, property insurance, hazard insurance, and property taxes. Applicants having custody of records required by CCC to operate FSFL and SSFL programs must retain financial books and records and other written or electronic data for not less than 3 years from the date a loan is disbursed, market data's are reported; or marketing's are conducted under marketing allotments.

Financial Information

Account Identification

12-3301-0-1-351 - Account Identification for SSFL; 12-4158-0-3-351 - Account Identification for FSFL.


(Direct Loans) FY 16 Not Available; FY 17 est $309,000,000; and FY 18 Estimate Not Available

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

(1) A factsheet, press release, forms, and directives are available. Regulations at 7 CFR Part 1436 were published in the Federal Register under a final rule on August 18, 2009, amended on March 10, 2014 and on April 29, 2016.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Consult the appropriate FSA State office listed in Appendix IV of the Catalog.

Headquarters Office

Toni D. Williams USDA-FSA-PSD, Stop 0512, 1400 Independence Ave., SW, , Washington, District of Columbia 20250-0512 Email: Phone: 202-720-2270 Fax: 202-690-3307

Criteria for Selecting Proposals

Not Applicable.

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