What FSA options relate to storage and buildings?
FSA lists farm storage facility loans, which its rate announcements show alongside operating, ownership and commodity loans. The November announcement noted that commodity and storage loans are funded through the Commodity Credit Corporation and administered by FSA. FSA's farm ownership loans also cover building and improving farm structures.
Which one fits depends on what you build and what you store. Ask your county office to match your project to the right program. Storage and handling loans are separate from operating loans, so you may need to apply under more than one program if your project includes equipment and a building.
What do storage facility loans generally cover?
They are designed for building or upgrading storage and handling facilities for eligible commodities, and sometimes for related equipment. Eligible items and commodity lists are on FSA's page, so check it before you plan.
Because rules change, confirm what counts as eligible and how the loan is repaid today. If your commodity is not on the eligible list, ask staff whether another FSA loan or a commercial lender is a better fit for the project. Check the official page for how much of a project cost may be financed, and whether a down payment or security is expected. Do not rely on a neighbor's memory of what was allowed earlier.
- Bins and related equipment
- Cold or other storage buildings, where eligible
- Handling and drying equipment, where eligible
- Eligible commodities listed on the FSA page
How do rates and terms work for these loans?
The November announcement listed separate rates by term length for storage facility loans, with longer terms carrying different lines than shorter ones. Rates change by month, so look at the current page.
Choose a term shorter than the useful life of the structure, and match payments to when income arrives. Repayment terms differ from operating loans, so compare payment schedules carefully against your marketing plan and harvest timing. Because storage loans can run for different lengths, a longer term lowers the annual payment but increases interest paid in total. Decide which matters more for your cash flow.
How do I decide if a project pays?
Estimate the benefit: better prices from selling later, lower drying or trucking costs, fewer hauling delays, or the ability to market directly. Compare it with annual loan payment, maintenance, insurance and electricity.
If the project pays only when prices cooperate, scale down or phase it. Remember that storage lets you wait for better prices only if you can carry the cost of waiting, including interest on the stored crop. Local grain marketing specialists and extension economists often publish carrying cost calculators that show when storage pays and when it does not. Use one to test your plan.
What planning steps come before applying?
Get written bids and a site plan. Check permits, zoning and utilities. Confirm who owns the land the structure will sit on and whether lease terms allow it.
Ask the county office whether any approvals, including environmental review, must be finished before construction starts. Building first can cause problems. Ask about insurance requirements for the finished structure, as lenders often require coverage and may need to be named on the policy.
- Written bids
- Site plan and permits
- Land ownership or lease documents
- Environmental review questions
- Insurance quotes
What risks should I keep in mind?
Construction cost overruns, delays and weather can all push a budget off course. Equipment can fail, and the structure may be used less than you expect in a low-yield year.
Build a contingency into the budget and talk to your contractor about the payment schedule. Contractors sometimes request deposits up front, so decide how funds will be paid out before signing a contract.
What if the project is smaller?
For modest improvements, an operating loan, savings or equipment financing from a local lender may be easier. Compare total cost and paperwork.
Many extension programs publish storage and handling cost studies that help you test the economics. Look for university studies on storage returns in your region and compare your assumptions with theirs. Extension agents often know of local examples. If your project involves energy upgrades, such as solar or efficient fans, ask USDA staff whether other programs apply, and be wary of anyone selling grant lists for a fee.
Key takeaways
- FSA lists storage facility loans separately, funded through the Commodity Credit Corporation.
- Check eligible items and current rates on the official page.
- Estimate real savings or income from the project before borrowing.
- Get approvals and ask the county office before construction begins.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.