Low-cost loans available to farmers for storage facilities

Low-cost loans are available to producers for storage facilities and drying and handling equipment.

Spesifically, the loans can be used to build or remodel on-farm facilities to store a variety of commodities, including wheat, sorghum, soybeans and corn.

Interest rates are variable according to the month in which a loan is approved.

Farm storage-facility loans are disbursed on seven-year terms. The maximum amount that can be borrowed is 85 percent of the net cost of the grain storage or accompanying equipment, up to $100,000.

A minimum 15 percent downpayment, along with other eligibility and filing standards, are required of borrowers.

Eligible facilities can be new conventional type bins and related accessories as well as new or remanufactured oxygen-limiting upright silo structures.

Producers should contact their local county Farm Service Agency office to obtain more details or make application.

In other related FSA news, the Commodity Credit Corp. has recently authorized the extension of the Milk Income Loss Contract program payment rate calculation at 34 percent for the month of September.

Under previous law, the MILC payment period and 34 percent rate expired at the end of August. The MILC program compensates dairy producers when domestic milk prices fall below a specified level.

Bill Harmon is executive director of the FSA office for Marion County in Marion.

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