Loans available for grain storage facilities
The U.S. Department of Agriculture Farm Service Agency is offering low-interest loans to farmers to build or upgrade grain storage facilities and drying and handling equipment through the Farm Storage Facility Loan program.
Loans are available to:
- Build new conventional-type cribs or bins, oxygen-limiting and other upright silo-type structures, and flat-type storage structures for whole grain storage.
- Add perforated floors, safety equipment, quality improvement equipment, and concrete components essential for a fully functional storage facility.
- Remodel existing storage facilities to increase capacity.
Loans must be approved before site preparation, equipment purchase, or construction and must be secured by a promissory note and security agreement. The maximum principal is $500,000. Farmers are required to make a 15 percent down payment.
Loan terms of 7, 10, or 12 years are available, depending on the amount of the loan. Interest rates are based on the rate at which the agency borrows from the Treasury Department.
For more information, contact the local FSA office or visit www.fsa.usda.gov/ks.