USDA Farm Storage Facility Loan Program Marks 25 Years with Success Stories from U.S. Farmers
28 August 2025, Washington: The U.S. Department of Agriculture’s (USDA) Farm Storage Facility Loan Program (FSFL), operated by the Farm Service Agency (FSA), is celebrating 25 years of supporting farmers and ranchers with affordable financing for on-farm storage and handling solutions. Since its creation in May 2000, the program has helped thousands of agricultural producers reduce post-harvest losses, improve product quality, and increase profitability.
Kentucky Farmer Expands Storage with FSFL Support
In Green County, Kentucky, farmer Milton Arnett has successfully expanded his family-run Double R Farms by using FSFL to finance critical storage infrastructure. His diversified cattle and grain operation relies heavily on high-quality hay, both for feeding livestock and for sale to neighboring farms.
“Producing hay is a significant investment, and proper storage is essential to protect that value,” Arnett explained. “Through FSFL, we were able to build a hoop-style hay storage barn, purchase handling equipment, and add a grain bin. Protecting hay from weather and rot has improved quality, boosted cattle weight gains, and made our hay more marketable and profitable.”
Arnett noted that the process of applying for FSFL was straightforward: “The FSA office guided us every step of the way. I encourage other producers who need storage to use this program.”
Program Evolution and Benefits
Originally launched to address grain storage shortages, the FSFL program has evolved to meet the needs of diverse farm operations. Today, eligible facilities extend well beyond grain bins and include:
- Hay barns, cold storage, and milk bulk tanks
- Drying and handling equipment
- Skid steers, storage trucks, and portable facilities
The list of eligible commodities has also expanded to reflect modern agriculture, ranging from grains, oilseeds, peanuts, hay, and hemp to honey, dairy products, aquaculture, fruits, vegetables, maple syrup, and even bison meat. Controlled atmosphere storage facilities have recently been added as well.
Financing Options for Farmers and Ranchers
FSFL loans are particularly beneficial for small and mid-sized farms, beginning farmers, and new ranchers. Loan terms range from three to twelve years, with maximum amounts of:
- $500,000 for storage facilities
- $100,000 for storage and handling trucks
- $50,000 for microloans, which offer lower down payments (5%) and waive production history requirements
These flexible financing options enable producers to invest in the infrastructure needed to maintain product quality and market competitiveness.
How to Apply
Farmers interested in FSFL can apply through their local FSA county office, which maintains their farm records. New farmers can also access resources via farmers.gov, including fact sheets and application guidance.
For 25 years, the Farm Storage Facility Loan Program has played a vital role in strengthening U.S. agriculture by ensuring farmers can protect the value of their harvests, reduce waste, and build resilient operations for the future.
Also Read: Possible Decline in Wheat Production in India, Says Agriculture Minister
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