By Blake Jackson
For 25 years, the USDA Farm Service Agency’s (FSA) Farm Storage Facility Loan Program (FSFL) has provided family-owned farms with affordable financing to improve their on-farm storage and handling capabilities. This program has helped operations of all sizes reduce losses, improve product quality, and boost profitability.
In Green County, Kentucky, farmer Milton Arnett has used the program to strengthen his diversified cattle and grain business, Double R Farms.
“We produce hay as part of our operation. We use that hay to feed our cattle and to sell to other farmers in the area,” Milton said. “The overall cost of production means that putting up hay is a large investment in the operation. So, we must make sure our hay is high quality in order to get the most return on our investment and to get the most nutrient value in our feed.”
Because improperly stored hay is vulnerable to mold, pests, and weather, Arnett turned to FSFL to purchase a hoop-style hay barn, a grain bin, and additional handling equipment.
“We were able to build a hoop style hay storage barn on our farm to reduce waste from rot and weathering. The increased hay quality led to more efficient weight gains for our cattle and our customers’ livestock,” Arnett said. “Protecting the quality of hay and length of time we can store it has increased the marketability and profitability of our hay production.”
Created in 2000 to address grain storage shortages, FSFL has since expanded to cover a wide range of commodities and equipment.
Eligible facilities now include hay barns, cold storage units, milk bulk tanks, and more. The program also supports related equipment such as drying, handling systems, skid steers, and trucks.
“Applying for the FSFL program was a simple process,” Milton added. “The [FSA] office helped us every step of the way to make sure we understood the requirements and told us where we were in the process. I encourage any agricultural producer that needs storage to use the FSFL Program.”
Loan terms run from three to 12 years, with limits of $500,000 for storage facilities and $100,000 for trucks. FSFL also offers microloans up to $50,000 with a lower down payment and fewer requirements, making it an attractive option for beginning and small-scale farmers.
Photo Credit: usda-farm-service-agency
Categories: Kentucky, Government & Policy