What's Up at the USDA Office?
Upcoming Deadlines/Dates
February 19: Office closed for observance of President’s Day
March 15: Deadline to sign up for the ARC PLC program
Interest Rates Move Lower - Farm Storage Facility Loans
The Farm Storage Facility Loan Program (FSFL) allows producers of eligible commodities to obtain low-interest financing to build or upgrade (new or used) farm storage and handling facilities.
These loans include but are not limited to: storage bins, wet holding bins, new concrete foundations, permanently affixed grain handling and drying equipment, equipment to improve, maintain, or monitor the quality of stored grain, silage bunkers, grain carts, grain trailers, hay storage structures, and bulk tanks for dairy operations.
The maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a minimum down payment of 15%, with the Commodity Credit Corporation (CCC) providing a loan for the remaining 85% of the net cost of the eligible FSFL. Loans up to $100,000 can be secured by a promissory note/security agreement and loans exceeding $100,000 require additional security.
You do not need to demonstrate the lack of commercial credit availability to apply. The loans are designed to assist a diverse range of farming operations, including small and mid-sized businesses, new farmers, operations supplying local food and farmers markets, non-traditional farm products, and underserved producers.
February interest rates range from 4.125%-4.000% and terms range from 3-12 years. Rates change monthly.
An FSFL must be approved by the Allamakee County Committee before any site preparation or construction begins.
For additional questions and assistance, contact the Allamakee County FSA office (563) 568-2148, Ext. 2.
USDA Encourages Producers Participating in Conservation Reserve Program to Consider Forest Management Incentive
The U.S. Department of Agriculture (USDA) is offering financial assistance to agricultural producers and private landowners enrolled in its Conservation Reserve Program (CRP) to improve the health of their forests. The Forest Management Incentive, available through USDA’s Farm Service Agency (FSA), can help participants with forest management practices, such as brush management and prescribed burning.
The Forest Management Incentive is available to participants with active CRP contracts with forest cover that are not within two years of expiring. The incentive is a payment to eligible CRP participants who properly completed authorized forest management practice activities to improve the condition of resources, promote forest management and enhance wildlife habitat.
Forest management practices include brush management, herbaceous weed control, prescribed burning, firebreaks, development of early successional habitat and forest stand improvement. Participants can now submit offers for the Forest Management Incentive. Interested producers should contact the Allamakee County FSA office for further information.
USDA Now Accepting Applications for Farm Loans Online
The U.S. Department of Agriculture (USDA) has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless and provides helpful features including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA’s Farm Service Agency (FSA) to streamline its processes, improve customer service, and expand credit access.
The online farm loan application replicates the support an applicant would receive when completing a loan application in person with an FSA Farm Loan Officer, while continuing to provide customers with one-on-one assistance as needed. This tool and other process improvements allow farmers and ranchers to submit complete loan applications and reduce the number of incomplete and withdrawn applications.
Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA’s Loan Assistance Tool at farmers.gov/loan-assistance-tool. To use the online loan application tool, producers must establish a USDA customer account and a USDA Level 2 eAuthentication (“eAuth”) account or a Login.gov account. For the initial stage, the online application tool is only available for producers who will be, or are currently, operating their farm as an individual. FSA is expanding the tools availability to married couples applying jointly and other legal entities in 2024.
Farm Loan Improvement Efforts
FSA has a significant initiative underway to streamline and automate Farm Loan Program customer-facing business processes. For the over 26,000 producers who submit a Direct Loan application to FSA annually, and its 85,000 Direct Loan borrowers, FSA has made improvements this year, including:
• A simplified direct loan paper application, reduced from 29 pages to 13 pages.
• The Loan Assistance Tool on farmers.gov that provides customers with an interactive online, step-by-step guide to identifying the Direct Loan products that may be a fit for their business needs and to understanding the application process.
For further information, or assistance with the process contact our Farm Loan Manager (FLM), Shelby Richards, at 563-382-8777, or via email at Shelby.Richards@usda.gov.
