Ag Loans Boost Cold Storage Facilities

By Scout Nelson

The U.S. Department of Agriculture’s Farm Service Agency (FSA) has introduced Farm Storage Facility Loans (FSFL) to support the implementation of controlled atmosphere storage for agricultural producers handling perishable commodities like fruits, vegetables, and flowers.

This advanced storage technology extends the shelf life of these products by regulating oxygen, carbon dioxide, and nitrogen levels within the storage environment.

FSFLs offer low-interest financing for various needs, including constructing or upgrading storage facilities, purchasing portable structures and equipment, and acquiring controlled atmosphere storage monitoring equipment.

This essential equipment, such as oxygen sensors, CO2 sensors, and air quality sensors, ensures optimal storage conditions.

Eligible borrowers encompass a wide range of agricultural operations, from small and mid-sized businesses to new and underserved producers. The loans are available in various amounts, with security requirements increasing with loan size.

Loans up to $50,000 can be secured by a promissory note/security agreement, loans between $50,000 and $100,000 may require additional security, and loans exceeding $100,000 require further security. Notably, borrowers do not need to demonstrate a lack of commercial credit availability to apply for these loans.

These loans aim to enhance the storage capabilities of agricultural producers, helping them maintain the quality and extend the shelf life of their perishable products. By offering low-interest financing options, the FSA supports the agricultural community in adopting advanced storage solutions that benefit both producers and consumers.

The USDA’s initiative highlights the importance of controlled atmosphere storage in the agricultural industry and provides essential financial support to those looking to upgrade their storage facilities. For more information on the FSFL program and how to apply, agricultural producers are encouraged to visit the USDA’s Farm Service Agency website.

This loan program ensures that producers can continue to supply high-quality, fresh products to the market while minimizing losses due to spoilage, ultimately benefiting the entire agricultural supply chain.

Photo Credits:usda