What is the Farm Storage Facility Loan program?
The Farm Service Agency offers Farm Storage Facility Loans to help producers build or upgrade storage and handling facilities for commodities. FSA's pages describe it as a loan program with a fact sheet and servicing options. The kinds of commodities and equipment covered, the loan size and the terms come from the current FSA page.
Read that page before you plan. Programs add or change eligible items from time to time.
The program also has servicing options if repayment gets difficult, which FSA describes in a separate fact sheet. Ask about them at the start so you know what choices exist later.
- Fact sheet on current terms
- Servicing options if repayment gets hard
- Eligible commodities and equipment list
What can the loan pay for?
In general terms, it has covered things such as grain bins, cold storage, handling and drying equipment, and sometimes portable structures, depending on the version of the program and the commodity. The exact list is on FSA's site.
Ask the county office whether your specific item and commodity qualify before you sign a purchase agreement.
Be specific when you ask. Say what commodity you will store, how much, for how long and with what equipment. The more concrete the question, the more useful the answer.
- Bins and drying equipment
- Cold storage for produce or other products
- Handling and conveying equipment
- Site work connected to the facility
Who can use it?
Eligibility rules cover producers of eligible commodities, creditworthiness and compliance with USDA rules. Some versions have smaller loans with simpler paperwork. Farmers who rent land should ask how a lease affects eligibility.
FSA looks at repayment ability. Bring a cash flow plan that shows how storage raises income or lowers loss.
Ask if a smaller or simplified loan option exists for small purchases, since paperwork and down payment may differ from a standard loan.
How do I plan a storage purchase?
Begin with the problem: delivery bottlenecks, price discount at harvest, spoilage or capacity limits. Estimate what storage would save or earn per year, including interest, insurance, electricity, repairs and labor. Get several quotes from different suppliers. Write the expected savings as a yearly figure so you can compare it directly with the loan payment, and test the result with a poor-yield year as well as a good one.
Check local permits, zoning and utility needs. A building that cannot be connected or permitted is an expensive mistake.
Think through the full cost of ownership, including insurance, annual maintenance and the day the equipment wears out. A bin that lasts decades still needs a plan for repairs.
What should I bring to the FSA office?
Bring quotes and plans for the facility, a farm map showing the site, ownership or lease papers, recent financial statements, and a simple projection of use. Ask about required insurance, down payment and how collateral works.
Ask whether you must wait for approval before starting work. Starting early can affect eligibility.
Ask FSA how long the approval and closing steps usually take in your area. A harvest-ready bin needs a decision months earlier, and delays are common when many farmers apply at once.
- Quotes and drawings
- Farm map showing the site
- Ownership or lease documents
- Recent financial statements
What are the other options?
Commercial lenders and Farm Credit institutions finance buildings and equipment. Shared storage through a co-op or neighbor can cost less. Some states and nonprofits offer cost share for cold storage in local food systems.
Compare total cost, not just the rate. Ask each lender for the full terms in writing.
A used or smaller facility can sometimes meet the need at lower cost. Ask whether the program covers used equipment and weigh the repair risk against the savings.
What mistakes should I avoid?
Building more capacity than you can fill, ignoring operating cost, and buying before approval. Another is underestimating the time that permits and delivery take.
Review the loan with your accountant, since depreciation and interest can affect your taxes. Also ask a neighbor who built storage recently what surprised them, because the lessons about site work, power and delivery are usually local.
Do not overlook insurance on the new facility and the stored crop. Ask your insurance agent how a new structure changes your coverage.
Key takeaways
- FSA's storage loan program helps pay for storage and handling facilities.
- Check the current FSA page for eligible items, limits and terms.
- Do not buy or build before asking whether approval comes first.
- Compare with other lenders and shared storage.
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.