March 24, 2010

Cold Storage Facilities now Eligible for USDA Loans

Agriculture Secretary Tom Vilsack said that the Farm Storage Facility Loan program has been amended to allow producers to build cold storage facilities to store their fresh fruits and vegetables. This program is part of USDA’s Know Your Farmer, Know Your Food initiative and uses discretionary authority provided by the 2008 Farm Bill authorizing the eligibility of cold storage facilities for fruits and vegetables.

“Expanding the Farm Storage Facility Loan program will provide our nation’s fruit and vegetable producers with new storage and marketing opportunities,” Vilsack said. “On-farm storage may cost a lot to build, but it can help farmers to maximize profits. USDA’s program will help these producers to finance the purchase, construction or refurbishment of these important farm storage facilities.”

USDA’s Know Your Farmer, Know Your Food initiative emphasizes the need for a fundamental and critical reconnection between producers and consumers. The effort builds on the 2008 Farm Bill, which provides for increases and flexibility for USDA programs in an effort to revitalize rural economies through the promotion of local food systems. Aimed at strengthening the connection between farmers and consumers, the initiative also supports local and regional food systems, to increase economic opportunities for local farmers and expand access to healthy food for Americans.

To be eligible, cold storage facilities must have a useful life of 15 years. Facilities must also meet criteria from the following:

USDA will not make cold storage facility loans for portable structures, portable handling and cooling equipment, used or pre-owned structures or cooling equipment or structures not suitable for a fresh fruit and vegetable cold storage facility.

The maximum amount for a Farm Storage Facility loan is $500,000 per loan.

Loans applications should be submitted to the administrative Farm Service Agency county office that maintains the records of the farm or farms to which the application applies.

For more information on this program or other FSA farm programs, contact your local FSA office or visit www.fsa.usda.gov.





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