Farm Compliance

“On-farm storage is important to a successful operation,” Schott said. “It allows a producer to better manage the marketing of grain by not being completely at the mercy of the cycles of the market. This is an important tool that allows me to make much better decisions for my business.”

An enhanced version of the Farm Storage Facility Loan Program was adopted as part of the 2008 farm bill. Changes include an increase in the maximum principal amount of a storage facility loan to $500,000, an increase in the term of such loan to 12 years and a provision that would direct the agriculture secretary to provide for partial disbursement of the principal to facilitate the purchase and construction of the facilities or their upgrades. Currently, the loan limit is $100,000 with a maximum term of seven years. The program provides for low-cost financing for producers to build or upgrade on-farm storage or handling facilities.

During the public meetings, which were held in Kansas City, Kansas, and Cleveland, Ohio, FSA officials said they intend to provide information on the program at the county level and have the goal of mid-July to complete the rulemaking process.