The U.S. Department of Agriculture has announced that its Farm Storage Facility Loan Program will now finance low-interest loans for farmers, to pay for the construction of cold storage facilities. The cold storage facilities must be used by farmers to store fresh fruit and vegetables. The cold storage loans are part of the USDA’s “Know Your Farmer, Know Your Food” program, a program promoted by the Obama administration to encourage Americans to eat food that has been grown locally. The money to finance the loans was authorized by Congress’ 2008 Farm Bill.
Although the statement released by the Department of Agriculture does not mention self storage, it does not specifically rule out the possibility that self storage facilities could be used to store the nation’s locally grown food. Facilities that apply for federal loans must, however, demonstrate a need for the storage provided by the facility, based on the average production from a particular acreage over three years and the borrower’s share of the production. It is probable that self storage facilities, if they were to apply, would have to enter a business relationship with a farmer whose acreage is in need of storage, and document that relationship for the USDA. However, self storage facilities seem like a natural choice for seasonal food storage, since they offer short term storage at reasonable prices, and can provide refrigerated and/or climate-controlled units.
“Expanding the Farm Storage Facility Loan program will provide our nation’s fruit and vegetable producers with new storage and marketing opportunities,” said Agriculture Secretary Tom Vilsack in a statement released to the press on March 17. “On-farm storage may cost a lot to build, but it can help farmers to maximize profits. USDA’s program will help these producers to finance the purchase, construction, or refurbishment of these important farm storage facilities.”
Meanwhile, Agriculture Deputy Secretary Kathleen Merrigan commented in a statement to the press on March 12 that new opportunities available to farmers under the “Know Your Farmer, Know Your Food” program might make it possible for farmers to sell their produce to local schools to be used in school lunch programs.
Facility loans are also available for storage facilities that will store corn, sorghum, rice, soybeans, oats, peanuts, wheat, barley, pulse crops such as lentils and chickpeas, hay, and renewable biomass. Loans for these storage facilities have been available since last fall.
Sources used:
“Cold storage facilities now eligible for USDA loan program.” Saipan Tribune. March 25, 2010.
U.S. Department of Agriculture. “Agriculture deputy secretary Merrigan highlights the ‘Know Your Farmer, Know Your Farm’ initiative in Wisconsin.” March 12, 2010.
U.S. Department of Agriculture. “Cold storage facilities now eligible for USDA facility loan program: producers can expand market opportunities, build new capacity.” March 17, 2010.
U.S. Department of Agriculture. “Farm Storage Facility Loan Program.” Overview.
U.S. Department of Agriculture. “Farm Storage Facility Loan Program.” Factsheet.
U.S. Department of Agriculture. “Know Your Farmer, Know Your Food.”