ASCS Storage Loan

ASCS Storage Loan

Provisions Changed

Changes recently announced by the U. S. Department of Agriculture in the loan program for farm storage and drying equipment “tighten up” some of the provisions, “but fanners can still get loans,” according to H. S. Barksdale, Chairman of the Agricultural Stabilization and Conservation County Committee. “The eligible farmer who wants on-farm storage or drying capacity equal to one year’s production may apply for a loan at his county ASCS office at any I time,” said Mr. Barksdale. “In general, a producer is eligible for a farm storage facility loan if he is eligible for price support on his grains or similar commodities.”

The changes in the program were designed to limit Government expenditures as part of the national battle against inflation, according to the ASC Chairman. The program, which is administered by ASCS, uses Commodity Credit Corporation funds to help finance on-farm grain storage bins and dryers. Recent changes include:

(1) Reduction of the maximum amount for loans on dryers from! 85 percent to 65 percent of net! coat or $2,500, whichever is less,.

(2) restriction of loans to| conventional type storage structures and elimination of loans on oxygen-free and silo-type storage structures, (3) no loans on foundations, electrical wiring and conditioning, handling, and operating equipment; (4) elimination of loans for remodeling; (5) provision that storage needs be based on a farm’s production for one year of eligible commodities, and (6) increase of the interest rate qn loans from 34 cents to 50 cents for each $100 or fraction thereof for each calendar month, or from about 4 percent to about 6 percent a year. In view of the increase in interest rates, the service fee of $5.00 per storage facility loan has been eliminated

Mr. Barksdale urged farmers who are considering installing or adding to on-farm storage to check with their county ASCS office for full details on the farm storage and drying equipment

|loan program.