We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding Farm Storage Facility Loan Program Regulations for Producers
Definition & Meaning
The Farm Storage Facility Loan Program (FSFL) is a federal initiative designed to assist agricultural producers in obtaining low-interest loans for constructing or improving storage and handling facilities for specific commodities. Eligible commodities typically include grains like corn, barley, and wheat, as well as pulse crops, hay, renewable biomass, and certain fruits requiring cold storage. The program aims to enhance the efficiency and capacity of farm storage operations, ensuring that producers can store their harvest effectively.
Table of content
Legal Use & context
This term is primarily used in agricultural law and finance. It is relevant for farmers and agricultural producers seeking financial assistance for storage facilities. Users may encounter this term when applying for loans or navigating regulations set forth by the U.S. Department of Agriculture (USDA). With the right resources, such as templates from US Legal Forms, users can manage their loan applications and related documentation.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For instance, a farmer may take out a loan under the FSFL to build a grain storage facility specifically for corn and barley. This facility allows them to store their harvest safely and sell it at a later date when market prices are more favorable.
(Hypothetical example) A producer may also use the FSFL to improve existing storage for hay, ensuring they can maintain quality and reduce spoilage.
Relevant laws & statutes
Key regulations governing the Farm Storage Facility Loan Program can be found in Title 7 of the Code of Federal Regulations (CFR), particularly 7 CFR 1436.15, which outlines borrower responsibilities and collateral conditions. Other relevant federal agricultural financing laws may also apply.
Comparison with related terms
Term
Description
Key Differences
Farm Storage Facility Loan Program
A federal program providing loans for storage facilities.
Focuses on low-interest loans specifically for storage of eligible commodities.
Commodity Credit Corporation (CCC) Loans
Loans secured by eligible commodities stored in approved facilities.
CCC loans are typically short-term and secured by the commodity itself, rather than for facility construction.
Common misunderstandings
What to do if this term applies to you
If you are a producer considering the FSFL, start by reviewing the eligibility criteria for your commodities. Gather necessary documentation and explore the application process through the USDA. Utilizing legal templates from US Legal Forms can simplify your application. If your situation is complex, consider consulting with a legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.