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Farmers who have suitable storage can exercise greater independence in their marketing operations and help strengthen market prices. They can also take full advantage of commodity loan programs and realize higher total income from their farm operations in years of excess production.
A minimum down payment of 15 per cent of the cost is required in cash before the loan is disbursed. The loans may be repaid in seven equal annual installments over a period of eight years. Farm facility loans are secured and borrowers are required to provide adequate security to protect the Commodity Credit Corporation's interest.
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