Indiana FSA Farm Storage Facility Loans 1
Farm Storage Facility Loan The FSFL program provides low-interest financing for producers to build, upgrade, or acquire farm storage and handling facilities, equipment and handling trucks to store and handle eligible commodities they produce. 2
FSFL Eligibility Requirements Applicants must meet the following eligibility requirements: • Producer of an eligible • No delinquent federal debt commodity • Proof of applicable • Demonstrate a need for insurance, crop, structural, storage flood insurance, property and auto • Satisfactory credit history and ability to repay • Compliance with environmental laws 3
Other FSFL Provisions Other FSFL Program provisions include: • The maximum amount an applicant is allowed to borrow through the FSFL Program is $500,000 for a regular FSFL, and $50,000 for an FSFL microloan. Aggregate outstanding balance of $100,000 or more will require additional security. • Applicants may select a 3,5,7,10, or 12 year term to repay the FSFL, depending upon the amount of the FSFL requested • The FSFL interest rate is fixed for the term of the FSFL 4
Other FSFL Provisions Continued • A partial disbursement may be allowed when up to 50 percent of the FSFL project is completed • Applicants will be charged a nonrefundable application fee of $100 per applicant • Applicants are required to pay a minimum down payment of 15 percent to the builder/contractor/supplier for regular FSFL’s and 5 percent for FSFL microloans 5
Prohibited FSFL Actions The following actions must not occur at the FSFL site location before an environmental review has been completed: • Accept delivery of equipment and/or materials • Site preparation or foundation construction • Alteration to any structures that are 50-years-old or older or within a historic district. Completion of an environmental review takes a minimum of 45 days. Be sure to allow FSA adequate time to complete their process. 6
New FSFL Provisions – Term Options and Limits Loan terms 3 or 5 years must be selected for used storage, equipment and/or storage and handling trucks, regardless of loan amount. 7
FSFL March Interest Rates Interest rates are locked in for the life of the loan based upon the month of approval. The interest rate for March 2017 approved loans: • 1.5% for 3-year loan terms • 1.875% for 5-year loan terms • 2.25% for 7-year loan terms • 2.5% for 10-year loan terms • 2.5% for 12-year loan terms 8
FSFL Eligible Commodities Eligible commodities include but not limited to grains, oil seeds, peanuts, pulse crops, hay, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, meat and poultry (unprocessed), aquaculture, milk, cheese, yogurt, and rye. Please contact your local FSA county office for a complete listing of eligible commodities. 9
FSFL Eligible Commodities 10
FSFL Facility Types Eligible facility types may be permanently affixed or portable, new or used, and include grain bins, hay barns, bulk tanks, and facilities for cold storage, storage and handling equipment and handling trucks. 11
Eligible Storage (Portable or Permanently Affixed/New or Used) • flat type storage structures • conventional type bins or cribs designed for storage • bunker- type, horizontal, or open silo structures • walk-in prefabricated storage coolers or containers • hay barns/sheds • oxygen limiting and other • storage containers suitable upright silo type structures for proper storage of the designed for storage commodity • bulk tanks suitable for storing honey, maple sap and milk 12
Eligible Storage (Portable or Permanently Affixed/New or Used) • Uptake and discharge re-circulatory systems that are used for storage and handling tanks for aquaculture producers. • Renovating existing storage. Important : All structures must have an useful lifespan for the term of the loan. 13
Ineligible Storage Structures • temporary structures • structures to be used for a commercial purpose, as defined in 1-FSFL, Exhibit 2 • structures not suitable for storing the commodity for which a need is determined • aquaculture holding tanks when the holding or storage structure will have uptake and discharge water that comes from natural sources, tributaries, coastal and ocean waters, perennial waterways. - Full National Environmental Assessment (EA) is being completed… 14
Ineligible Storage Structures • production and feed facilities • livestock pens and houses • structures determined by STC or COC that are not suitable for the applicable commodity • determined to not have a useful lifespan of at least the term of the FSFL • structures to be used for a commercial purpose, as defined in 1- FSFL, Exhibit 2 • structures not suitable for storing the commodity for which a need is determined. 15
New/Used Portable Storage & Handling Equipment Necessary equipment and storage systems used to handle and maintain eligible commodities being stored includes, but not limited to: – Bulk Tanks – Skid Steers – Augers & Pilers – Gripper & Front-end Loader Attachments, – Conveyors – 3-point Hitch Lifts – Vacuums – Hydraulic Self-propelled Fork – Scales Lifts – Batch Dryers – Storage Containers (can be transported, hitched, or mounted on a trailer, farm vehicle or truck) – Wheel Loaders 16
New/Used Storage and Handling Equipment and Trucks 17
New/Used Storage and Handling Trucks Vehicles that store, handle, and transport eligible commodities and equipped with a variety of mechanical or refrigeration systems includes, but not limited to : cold storage reefer trucks • • grain haulers commodity transport vans • trucks with a chassis unit • Maximum of: • $100,000 loan amount 4 axles • Gross vehicle weight 60,000 lbs. or less . • 18
Ineligible Storage and Handling Trucks • older than 15 years • with a salvaged title • that cannot obtain full coverage automobile insurance • purchased more than 30 calendar days from the date of the FSFL request • determined by STC or COC to not have a lifespan of at least the entire FSFL term • determined by STC or COC that are not suitable for the applicable commodity • cannot obtain the required State emissions and vehicle inspection. 19
FSFL Application An FSFL application packet will consist of the following information: • Nonrefundable $100 application per applicant made payable to CCC. • CCC-185, Loan Application for Farm Storage Facility Loan Program. • Financial records for the previous three crop years. If only federal tax records are available, provide copies of form 1040 and Schedule F. • Current balance sheet no more than 90 days old. Form FSA-2037 or equivalent form of balance sheet may be used. • Current cash flow reflecting current year’s farming operation. Form FSA-2038 or an equivalent form of cash flow may be used. 20
FSFL • Contact your local Farm Service Agency office for more details. 21
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