Pros

  • Rate of approximately 2.50% (CCC rate) — the lowest fixed-asset financing available to farmers
  • No credit-elsewhere test required — simpler qualification than other FSA (Farm Service Agency) programs
  • The facility itself serves as collateral — no additional real estate lien
  • Saves $30K–$50K vs. commercial financing on a $200K structure over 10 years
  • 12-year terms for permanent structures provide manageable monthly payments

Cons

  • 15% down payment required — $30K on a $200K grain bin
  • On-farm structures only — rented or off-site storage does not qualify
  • Maximum $500K per borrower caps the program for large operations
  • Minimum loan is $50K — not suitable for small portable storage
  • Approval takes 3–4 weeks even though the application is simpler than other FSA programs

Who This Is For

Grain, hay, and specialty crop farmers who want to store production on-farm to market at higher prices. Ideal for operations building grain bins, cold storage, or hay barns that cost $50K–$500K.

— USDA Farm Service Agency — Farm Storage Facility Loan Program

Who Should Look Elsewhere

Farmers who already have adequate storage or sell at harvest should not take on storage facility debt. Operations needing more than $500K in storage should combine FSFL with commercial financing.

What Is the FSFL Program?

Chart showing Farm Storage Facility Loan limits and comparison to other FSA programs
Farm Storage Facility Loan limits, 2026. No down payment required for loans under $50,000.

The Farm Storage Facility Loan program is administered by the USDA Farm Service Agency and designed to help producers store eligible commodities on their farms.

By storing grain on-site rather than in commercial elevators, farmers gain more flexibility to market their crops when prices are favorable — rather than selling at harvest when prices may be depressed.

The FSFL stands apart from other FSA loan programs in two important ways: it carries the lowest interest rate of any USDA farm loan (tied to the CCC borrowing rate), and it does not require you to demonstrate that you can't obtain credit elsewhere.

If you produce an eligible commodity and have a farm where storage will be built, you're broadly eligible.

About the CCC Rate
The Commodity Credit Corporation rate is the interest rate at which the U.S. Treasury lends to CCC for its commodity programs. It typically runs well below commercial farm lending rates. The rate is updated periodically — check the current rate at fsa.usda.gov before applying.

What You Can Finance

FSFL covers a wide range of on-farm storage infrastructure. Eligible facilities and equipment include:

  • Grain bins and silos (hopper-bottom and flat-bottom)
  • Flat storage buildings (hay, grain, commodity sheds)
  • Refrigerated storage and cold storage facilities
  • Handling equipment that is permanently affixed to eligible storage facilities (bucket elevators, conveyors, aeration systems)
  • Grain drying equipment connected to eligible storage
  • Portable storage structures (with specific requirements)

What You Cannot Finance

✓ Eligible

  • Grain bins (on-farm)
  • Cold storage facilities
  • Hay sheds
  • Peanut storage
  • Aeration and drying systems
  • Permanently attached handling equipment
  • Portable storage (qualifying types)

✗ Not Eligible

  • Processing or milling equipment
  • Transportation or hauling equipment
  • Commercial off-farm storage
  • Storage for non-eligible commodities
  • Facility repairs (new construction only)
  • Land purchase
  • Working capital or operating expenses

Eligible Commodities

To qualify for the FSFL, you must produce a commodity that is eligible for CCC price support programs or be an eligible commodity as defined by the Farm Bill. Major eligible commodities include:

Commodity CategoryExamples
Row CropsCorn, soybeans, grain sorghum, wheat, barley, oats, rye, canola
Cotton & OilseedsUpland cotton, extra-long staple cotton, sunflower, flaxseed, safflower, sesame
LegumesPeanuts, dry peas, lentils, small chickpeas, large chickpeas
ForageHay, silage
Specialty CropsEligible sugar crops, tobacco (with restrictions), rice
Fresh Produce (cold storage)Fruits and vegetables (requires refrigerated facility loan type)

FSFL Interest Rates

The FSFL rate is tied to the CCC borrowing rate, which is set by the U.S. Treasury. Unlike other FSA loan rates that update quarterly, the CCC rate updates more frequently based on Treasury borrowing costs.

In April 2026, the rate stands at approximately 2.50% — making FSFL one of the lowest-cost financing options available for any farm improvement.

The rate is fixed at loan closing for the life of the FSFL — you lock in the rate you receive when you close on your loan, regardless of future CCC rate changes. This makes FSFL loans highly attractive in periods when the CCC rate is low.

Rate comparison
At ~2.50%, FSFL financing is significantly cheaper than commercial equipment loans (typically 6–9%), farm credit storage financing (5–7%), or bank term loans. On a $200,000 grain bin financed over 10 years, this rate difference can save $30,000–$50,000 in interest.

Loan Limits and Terms

ParameterDetails
Minimum loan amount$50,000
Maximum loan amount$500,000 per borrower
Down payment required15% of total project cost
Maximum term — permanent structures12 years
Maximum term — portable structures7 years
Maximum term — handling equipment only7 years
CollateralThe storage facility itself serves as collateral
Location requirementStorage must be located on the farm where the commodity is produced

How to Apply

FSFL applications are processed at your local county FSA service center — the same office where you'd apply for other FSA loans.

The process is generally simpler than a Direct farm ownership or operating loan because the "unable to obtain credit elsewhere" requirement does not apply.

Basic requirements for application:

  • Proof that you produce an eligible commodity
  • Construction quotes or bids for the proposed facility
  • Evidence of farm ownership or long-term lease of the property where storage will be located
  • Evidence that the 15% down payment is available
  • Basic financial information (current balance sheet)

You do not need 3 years of tax returns or a detailed cash flow projection for most FSFL applications, making this a faster and simpler process than other FSA loan types.

Contact your county FSA office to start the process and confirm current documentation requirements.

Is the FSFL Right for You?

Compare FSFL to the two most common alternatives for financing on-farm storage:

FeatureUSDA FSFLCommercial Equipment LoanGrain Storage Lease
Typical rate~2.50%6–9%N/A (lease payments)
Down payment15% required10–20% typicalNone or first/last month
Own the facilityYes — you own itYes — you own itNo
Approval time3–4 weeks1–3 weeksImmediate
Max loan / commitment$500,000Lender-dependentOngoing obligation
Best forLong-term storage investment at lowest costWhen speed matters or FSFL limit is reachedWhen you need temporary or seasonal storage only

For most grain and commodity farmers who plan to store on-farm for multiple years, the FSFL is the clear winner on cost. The 15% down payment and application process are modest hurdles compared to the lifetime interest savings.

Apply for an FSFL at Your County FSA Office

The application process is simpler than other FSA loan types and doesn't require proving inability to get credit elsewhere.

Visit USDA FSA →

AcreCompass has no affiliate relationship with USDA.

Frequently Asked Questions

Can I use the FSFL to upgrade an existing grain bin?
The FSFL is primarily for new construction rather than repairs or upgrades to existing facilities. However, adding aeration equipment to an existing bin, or replacing a structurally deficient facility with a new one, may qualify depending on the scope of the project. Discuss your specific situation with your county FSA loan officer to determine eligibility.
Is the $500,000 limit per structure or per farm operation?
The $500,000 limit is per borrower, not per structure. You can apply for multiple facilities in a single application as long as the total doesn't exceed $500,000. If you need more than $500,000 in storage financing, you would need to supplement with commercial lender financing for the amounts above the FSFL limit.
What if I rent my farmland — can I still get an FSFL?
You may be eligible even if you rent farmland, but FSA will require evidence of a long-term lease that is at least as long as the FSFL repayment term (typically 7–12 years). Short-term annual leases generally do not qualify because FSA requires assurance that the storage facility will remain on your farm for the life of the loan.
Do I need crop insurance to get an FSFL?
Crop insurance is not a requirement for the FSFL. However, FSA may require hazard or property insurance on the storage facility itself for the duration of the loan. Your county loan officer will specify the required insurance at the time of application.
Can I sell the grain bin before the loan is paid off?
No. The storage facility serves as collateral for the FSFL. You cannot sell, transfer, or remove the facility without FSA's consent while the loan is outstanding. If you sell your farm, the FSFL would typically need to be paid off at closing or assumed by the buyer with FSA approval.
How is the CCC rate different from other FSA loan rates?
Other FSA Direct loan rates (ownership, operating) are set quarterly by USDA based on the cost of farm credit. The CCC rate is tied directly to the U.S. Treasury's borrowing cost — it changes more frequently and tends to track Treasury rates more closely. Historically, the CCC rate has been lower than other FSA loan rates, which is why FSFL financing is typically the cheapest farm loan available. Both rates are fixed at closing.

Sources