Senators Want Broader Farm-Storage Program

April 3, 2000

A group of senators is calling on USDA to include silage and "condo" storage in a low-interest farm storage loan program soon to be announced. Silage comes from corn and corn is considered "grain" and grain is allowed in the program, say the senators

USDA is working on regulations for the program and expects to publish the rules in the Federal Register sometime in late spring. The program provides low-interest loans for farmers to build on-farm storage for their crops.

"We are told silage is not eligible for the loan program," the senators told Agriculture Secretary Dan Glickman in a letter last week. "If your objective in implementing this program is to help as many producers as possible, as we believe it is, we would urge you to make corn silage eligible."

"Condo" storage refers to the practice of producers collaborating to build facilities at an elevator site. In their letter, the senators say the practice results in a number of benefits: the grain is already at market for delivery; quality problems are avoided because the grain is monitored regularly, and producers gain additional production and marketing flexibility.

The practice "is particularly beneficial to smaller producers, because they can have partial ownership of a storage facility. This is increasingly important as producers face pressure to segregate their commodities," they added. "Since condo storage is precisely the kind of creative, proactive behavior USDA promotes, we urge you to included it in this program."

Signing the letter were Sens. Charles Grassley (R-I), Bob Kerrey (D-NE), Tom Daschle (D-SD) and Kent Conrad (D-ND).