USDA Update

By Rod Johnson

November 23, 2007

The entire staff at the USDA Service Center wishes you and your families the best of the Thanksgiving season. We are thankful to have a great group of agricultural producers to work with, which makes our job that much easier.

Grain Bin Loans

Now is a good time to be thinking about upgrading your grain storage and handling facilities. FSA offers low interest loans to build new or remodel existing grain storage. Loans are on 85% of the eligible costs for up to 7 years. Interest rate is based on the month of loan approval. The interest rate for November 2007 is 4.375%. Liens on real estate are required when the loan amount exceeds $50,000. In addition to new construction, renovation of existing facilities, safety equipment, permanently affixed drying or handling equipment, new electrical equipment, grain monitoring equipment, new concrete foundations, aprons, pits, and pads are eligible. If you have grain storage needs, contact the FSA Office to see if the Farm Storage Facility Loan Program will work for you.

Farm Loan Year End Reviews

Producers that have a farm loan with FSA are reminded they must provide data for their Year-End Analysis (YEA) to their loan officer each year. Borrowers are urged to provide this information timely so that their files can be maintained. The office will contact you for the data you will need to provide.

Operating Loan Application Needed Now

Farmers planning to apply to the Farm Service Agency for annual operating loan assistance this year are encouraged to apply as soon as possible. The earlier an application for loan assistance is filed, the quicker the FSA staff can process your request. In addition, due to budget constraints, farmers that wait until later in the year to apply, often run the risk of finding out that our funding allocations have already been utilized. Farmers should also contact their FSA Farm Loan Manager or Officer at (719) 336-3437 for information as to what is required in order to have a complete loan application on file. Decisions on loans cannot be made until a complete application is received.