USDA adds cold storage to loan program
The U.S. Department of Agriculture said it has amended its Farm Storage Facility Loan program to allow producers to build cold storage facilities to store fresh fruits and vegetables.
The program is part of the USDA's 'Know Your Farmer, Know Your Food' initiative and uses discretionary authority provided by the 2008 Farm Bill.
'On-farm storage may cost a lot of build, but it can help farmers to maximize profits,' said U.S. Agriculture Secretary Tom Vilsack in a statement. 'USDA's program will help these producers to finance the purchase, construction or refurbishment of these important farm storage facilities.'
The loan program is aimed at 'strengthening the connection between farmers and consumers' and supports 'local and regional food systems,' USDA said.
To be eligible, cold storage facilities must have a useful life of 15 years. The USDA program will not cover portable structures, used or pre-owned cooling equipment, or structures not suited for cold storage of fresh fruits and vegetables.
The maximum loan amount for a farm storage facility is $500,000. All loans require a down payment of at least 15 percent. Applications must be approved before construction can begin. Loan terms of seven, 10 or 12 years are available depending on the amount of the loan.
For more details, access the USDA Farm Service Agency's Web site.
USDA adds cold storage to loan program
