Farm Storage Facility Loans 1
Farm Storage Facility Loan Program Purpose The FSFL program provides low interest financing for producers to acquire, build, or upgrade permanent or portable, new or used: storage and handling facilities drying and handling equipment storage and handling trucks.
FSFL Environmental Compliance An Environmental Screening Worksheet must be completed for all FSFL requests. It is completed to determine whether the proposed action could potentially affect protected resources. FSFL s cannot be approved if an adverse impact has been determined and it cannot be mitigated. Forms: FSA-850, Environmental Screening Worksheet FSA-851, Environmental Risk Survey Form NRCS-CPA-052 is acceptable instead of FSA-850.
Actions That May Impede Completing a FSA-850 for FSFL eligibility accepted delivery of equipment and/or materials site or foundation preparation alterations to any structures that are 50 years old or older or within a historic district.
There are Two Types of FSFL s Regular FSFL s Microloan FSFL s
Regular FSFL Maximum regular FSFL amount is $500,000 per loan request. Terms are 3, 5, 7, 10 or 12 years Depending on the amount borrowed Notes: The term for a USED storage facility, equipment or truck is 3 or 5 years. All FSFL equipment financed (new or used) must have useful life for the term of the loan. Minimum down payment of 15%
Microloan FSFL Maximum FSFL microloan amount is $50,000 (aggregate outstanding balance cannot exceed $50,000) Example: A producer who currently has an outstanding FSFL for $30,000 would only be eligible for an additional $20,000 under ML provisions. Microloan Minimum down payment is Producers may self-certify to storage capacity need FSFL microloan terms are 3, 5, or 7 years Notes: The term for a USED storage facility, equipment or truck is 3 or 5 years. All FSFL equipment financed (new or used) must have useful life for the term of loan.
FSFL Microloan (ML) Provisions Example: The net cost of facility or equipment is $50,000, supported by bills and invoices paid in full or partially paid to the supplier or contractor. The minimum down payment paid to suppliers and/or contractors must total 5 percent ($2,500). $47,500 is the amount eligible for the FSFL ML. 8
Frequent FSFL Microloan Questions Question: How many FSFL microloans can a producer have outstanding at one time? Answer: A producer can have unlimited FSFL microloans outstanding; however, the aggregate outstanding balance for the microloans must NOT exceed $50,000.00. Question: Can a producer pay down an outstanding FSFL so that he/she may qualify for an FSFL microloan? Answer: Yes. Example: Producer has an outstanding FSFL in the amount of $33,000, and he wants a $20,000 FSFL microloan. The producer could choose to decrease the amount of the loan request to $17,000 or they could make a payment of $3,000 to apply to the outstanding FSFL and qualify for the $20,000 FSFL microloan. 9
Eligible FSFL Commodities Corn, rice, oats, barley, hay, honey, hops, renewable biomass, rye, fruits and vegetables, nuts, pulse crops, wheat, butter, milk, cheese, eggs, meat and poultry, yogurt, floriculture, maple sap, and aquaculture.
FSFL Provisions FSFL s for purchased commodities are ineligible for financing. IMPORTANT: ALL FSFL requests require a financial analysis to be completed and environmental compliance determined before loan approval. 11
Eligible Storage (Portable or Permanently Affixed/ New or Used) conventional type bins or cribs designed for storage walk-in prefabricated storage coolers or containers oxygen limiting and other upright silo type structures designed for storage cheese storage structures cold structures for storing eligible livestock carcasses flat type storage structures bunker-type, horizontal, or open silo structures hay barns/sheds storage containers suitable for proper storage of the commodity bulk tanks suitable for storing honey, maple sap and milk 12
New/Used Storage and Handling Equipment and Trucks 13
New/Used Portable Storage & Handling Equipment Necessary equipment and storage systems used to handle and maintain eligible commodities being stored include: Bulk Tanks Augers & Pilers Conveyors Grain Vacuums Weight Scales Portable Concrete installed scales to weigh the FSFL commodity Batch Dryers Storage Containers (can be transported, hitched, or mounted on a trailer, farm vehicle or truck) Skid Steers Gripper & Front and Rear-end Loader Attachments 3-point Hitch Lifts Hydraulic Self-propelled Fork Lifts 14
New/Used Portable Storage & Handling Equipment Bale Accumulators, Wrappers, and Band-its, excluding ties and wrapping supplies Automatic Bale Stackers Hay Wagons and Hay Trailers self-dumping or non-dumping types Bottling Systems for milk and honey, excluding honey and milk containers Baggers, excluding grain bags Grain Carts With/without auger systems Gravity-flow Wagons Telehandler Grain Hauler Trailers Blast Freezers Pallet Jacks Dump Carts 15
New/Used Storage and Handling Trucks Vehicles that store, handle, and transport eligible FSFL commodities: Cold Storage Trucks Flat-bed Trucks Grain Trucks Storage Trucks with chassis unit Box Trucks Box Vans Maximum of: $100,000 loan amount 4 axles Gross vehicle weight 60,000 lbs. or less. 16
17
FSFL Information Chart Loan Type Facility Type Condition Down Payment Max Loan Amount Production History Requirement Terms (years) 3 5 7 10 12 Structure and Equipment New 15% $500k Regular Used 15% $500k Truck New 15% $100k Based on Used 15% $100k Commodity Microloan Structure, Equipment and Truck New 5% $50k Self-certification Used 5% $50k Self-certification 18
FSFL Monthly Interest Rates February 2017 Interest rates for FSFL s approved during February 2017 are as follows: 1.500 percent with three-year loan terms 2.000 percent with five-year loan terms 2.250 percent with seven-year loan terms 2.500 percent with 10-year loan terms 2.500 percent with 12-year loan terms. 19