After a very challenging spring and early summer, it is unbelievable how several crops did some catching up during July. When you have overnight lows that are in the 70's, you can almost see and smell the corn grow if moisture is present.
Crops in central Minnesota are in various stages of development still depending a lot on planting dates. Corn that was near knee high on July 4 has shot up to near normal now, but those fields planted late in muddy conditions still have a doubtful future. The weather in July in central Minnesota was more favorable by far than April, May and June.
Farm Storage Facility Loans
If you have a need for more on-farm storage, the FSA facility loan program is a low interest program that may help you. To qualify, on-farm storage may not exceed two years of production from the farm, loans are for 85 percent of receipted costs (in other words, you pay at least 15 percent down), the application is good for four months once approved, and there is a $100 non-refundable application fee.
The program was expanded in the last farm bill to include additional types of storage, including grains, hay, and biomass and cold storage. Loans are secured by a promissory note and a security note on the facility, unless the loan amount is over $50,000, then it would include a mortgage on the real estate it is located on.
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Applicants must have a satisfactory credit rating and no delinquent federal debt. You must be a producer of the qualified commodities, carry crop insurance and facility insurance for the duration of the loan, comply with USDA wetlands and highly erodible provisions, and local planning and zoning codes. Applicants must also demonstrate repayment ability on a current financial statement. It is very important that applicants do not start site preparation or take delivery of the facility prior to loan approval if you are intending to apply through FSA.
Structures must be new, with the exception of re-manufactured oxygen-limiting structures. Grain handling and drying equipment can be included if it is permanently affixed and not portable. Interest rates change each month, but once the loan is approved it is locked in for the duration of that loan.
The interest rate for July is just 2.375 percent. If you are interested in a storage facility loan through USDA, call or stop in at your local FSA office. Builders usually get busier when fall gets closer, so now might be the time to check on it and get bids.
Larsen is the county executive director for the Morrison County Farm Service Agency. Send your FSA notes to jkubat@agrinews.com.
