Hay Barns Now Financed by FSA

Effective August 17, 2009, the opportunity to finance hay barns through Farm Service Agency (FSA) became reality. Patterned and regulated similarly to the grain bin loans which  FSA has administered for years, 85% of the cost of new storage facilities for up to two years worth of “hay and renewable biomass” production may be financed at the fixed FSA interest rate for either 7, 10 or 12 years depending on the amount of the loan. In certain circumstances, the renovation of existing storage may also be financed. The FSA farm storage facility loan interest rates for loans processed in September, 2009 are 3.25% amortized for 7 years, 3.625% for 10 years, or 4.0% for a 12 year loan.

For the purposes of this loan program, “hay” is defined as all the traditional grasses and legumes grown in Ohio for hay crops plus grain legumes such as soybeans if they are harvested as whole plants. “Renewable biomass” is defined as any organic matter that is available on a renewable basis used for producing energy in the form of heat, electricity and fuel. Examples include algae, crop residues, plants and trees, other ag commodities and vegetative waste material.

For more detail on securing financing for hay storage facilities, you may contact your local Farm Service Agency, or review this

Farm Storage Facility Loan Fact Sheet

at

http://www.fsa.usda.gov/Internet/FSA_File/fsfl09.pdf

or

USDA Notice FSFL-57

at

http://www.fsa.usda.gov/Internet/FSA_Notice/fsfl_57.pdf

Leave a Reply

Your email address will not be published. Required fields are marked *