USDA Will Lend Money for Farm Storage

November 4, 1999

USDA is working on a farm storage facility loan program that will provide farmers with low-cost loans to construct on-farm storage. It probably will be several weeks, however, before regulations are announced on the program

Parks Shackelford, associate administrator for programs at the Farm Service Agency, says "I think it's very likely" that the program will be established. "The Secretary (Dan Glickman) talked about it back in February when he announced the President's budget and has talked about it at every public opportunity since. I think it's quite likely something will be proposed."

Shackelford gave no details on the program other to say it would be similar to a storage facility loan program suspended in the early 1990s. "This is a program to loan money to people to build on-farm storage." Commodity Credit Corporation funds would be used for the program at the prevailing CCC interest rate in effect when a loan is made.

The proposed regulatory package still must go to the Office of Management and Budget for approval there, Shackelford said, "but I believe there's general support (at OMB) for this type of program."