What is the Farm Storage Facility Loan program?
The Farm Storage Facility Loan, or FSFL, is funded through the Commodity Credit Corporation and administered by FSA. FSA's page says it helps producers build or upgrade storage and handling facilities, including grain bins, hay barns, bulk tanks and cold storage. Drying, handling and storage equipment is eligible too, along with storage and handling trucks.
Facilities and equipment can be new or used, permanently affixed or portable.
The page says the loan covers permanent and portable gear, which can matter for operations that rent land and may not want a fixed structure.
What are the loan limits?
FSA's page lists a maximum of $500,000 for storage facilities and $100,000 for storage and handling trucks. It also describes a microloan option with an aggregate balance up to $50,000. These figures can change, so check the page before you plan.
Check with your contractor on how the quote lines up with what FSA will finance. Items like site prep and electrical may be treated differently, and the office can tell you.
How long are the terms?
FSA says terms range from 3 to 12 years, and interest rates are set by loan term. Longer terms carry higher rates in the table. The page lists the rates for the month shown on that page, and FSA publishes a new table each month in its lending rates announcements.
For example, FSA's October 2026 announcement listed a three-year rate of 4.500 percent and a twelve-year rate of 5.000 percent, while the FSFL page for November 2026 listed 4.875 percent and 5.250 percent. That shift shows why you should check the current month before you sign.
Think about a term that matches the useful life of the facility. A bin that lasts decades can justify a longer term, while a piece of handling equipment may not.
- Rates are fixed by term and published monthly
- Compare a shorter term's payment with a longer term's total interest
- Ask which rate applies on your approval date
How much is the down payment?
The page lists a 15 percent down payment for the regular program and 5 percent for the microloan. The microloan also waives the regular three-year production history requirement. That can matter for newer operations that cannot yet show a track record.
Make sure you have the cash for the down payment ready and documented, along with money for any costs that FSA will not finance.
How do I apply?
FSA points to Application Form CCC-0185, the FSFL handbook, the Apply for a Loan portal and a fact sheet, along with a service center locator for a meeting. Talk with the office before you buy or build, because FSA generally wants to review the project first.
The page does not describe every step of the application, so ask the office about their process and timing.
Keep every quote, invoice, permit and photo of the work in one folder, so you can answer questions quickly. The final disbursement depends on documentation of what was actually built or bought, and a missing receipt can hold up the money.
What mistakes should I avoid?
The big one is starting construction before approval. FSA's handbook for the related sugar storage program says construction generally cannot start before loan approval, so ask your office about the rule for your project before you pour a pad or order a bin. Another mistake is under-budgeting for site work, electrical, permits and insurance, which can add significantly to the quoted price of the bin itself.
Also think about whether you will fill the storage. A bin that sits half empty still carries a payment.
Insurance is another item to price in. Lenders generally require coverage on the collateral, and a new bin adds to your premium.
What should I ask my FSA office?
Ask what collateral is required, how the down payment is documented, what quotes or bids FSA wants, whether used equipment is acceptable and what inspection happens before the final disbursement. Ask also how the loan fits with your marketing plan, crop insurance and any commodity loan you might use.
Finally, ask whether servicing options exist if a poor harvest makes a payment hard. FSA has a servicing fact sheet for these loans, and talking early is better than waiting.
Key takeaways
- FSFL funds storage and handling facilities and equipment, new or used.
- FSA lists terms of 3 to 12 years with rates that vary by term and month.
- Down payment is lower under the microloan option.
- Get approval before you start building or buying.
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.