FEDERAL
AGENCY:
FARM
SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
AUTHORIZATION:
15
U.S.C. 714, et seq.
To
encourage the construction of on farm grain storage capacity and
to help farmers adapt to identity preserved storage and handling
requirements for genetically enhanced production.
TYPES
OF ASSISTANCE:
Direct Loans.
Place Cursor Here for Definition
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USES
AND USE RESTRICTIONS:
Loans
are used to finance the purchase and construction of new storage
structures, handling equipment and drying equipment, and to finance
the remodeling of existing storage structures. The loan amount is
limited to $100,000 times the number of borrowers liable for each
loan.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: An eligible borrower is any person
who, as landowner, landlord, operator, producer, tenant, leaseholder,
or sharecropper: (1) Has a satisfactory credit history and demonstrates
an ability to repay the debt arising under this program using a
financial statement acceptable to CCC prepared within 90 days of
the date of application; (2) has no delinquent Federal debt defined
by the Debt Collection Improvement Act of 1996 at the time of loan
disbursement; (3) is a producer of a facility loan commodity as
defined by CCC; (4) demonstrates a need for increased storage capacity
as defined by CCC if the applicant is applying for a loan for a
storage structure; (5) provides proof of crop insurance offered
under the Federal Crop Insurance Program for crops of economic significance
on all farms operated by the borrower in the county where the storage
facility is located; (6) is in compliance with USDA provisions for
highly erodible land and wetlands provisions according to 7 CFR
Part 12; (7) demonstrates compliance with any applicable local zoning,
land use, and building codes for the applicable farm storage facility
structures; (8) provides proof of flood insurance if CCC determines
such insurance is necessary to protect the interests of CCC, and
proof of all peril structural insurance, to CCC annually; (9) demonstrates
compliance with the National Environmental Policy Act regulations
at 40 CFR, Parts 1500- 1508; and (10) has not been convicted under
Federal or State law of a controlled substance violation under 7
CFR Part 718.
Beneficiary
Eligibility: Applicants/borrowers are the
direct beneficiaries when they meet all eligibility criteria.
Landowners, landlords, operators, producers, tenants, leaseholders,
or sharecroppers are the beneficiaries.
Credentials/Documentation:
Applicants must establish that they have a need for additional
storage capacity. The applicant must establish that he has the
ability to repay the loan. This program is excluded from coverage
under OMB Circular No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: None. This program is excluded
from coverage under OMB Circular No. A-102 and E.O. 12372.
Application
Procedure: Application Form CCC-185 provided
by the Farm Service Agency must be presented, with supporting
information, to the FSA county office serving the applicant's
county. FSA personnel assist applicants in completing their application
forms. This program is excluded from coverage under OMB Circular
No. A-110.
Award
Procedure: FSA State and County Committees
are authorized to approve these loans after applicants are determined
eligible.
Deadlines:
Applications must be filed at least 15 calendar days in advance
of the day when the FSA County Committee meets. Loan approvals
by the FSA County Committee expire 4 months after the approval
date unless extended for up to another 4 months.
Range
of Approval/Disapproval Time: The approval
process may take from 2 to 6 weeks.
Appeals:
Applicants for loans may appeal adverse actions taken against
them. The applicant is given an opportunity to appeal the decision
to the National Appeals Division.
Renewals:
The loan term is 7 years. The term of the loan may not be extended.
The loan is repaid in equal annual installments of principal and
interest amortized over the loan term.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: None.
Length
and Time Phasing of Assistance: The amount
of the loan is determined after construction takes place. A 15
percent down payment is required. The loan is disbursed by check
as soon as the cost is determined, all loan documents have been
prepared and all security documents have been filed.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Borrowers are required to maintain the collateral in good condition
and to keep property taxes and insurance current.
Audits:
Collateral is inspected by CCC annually.
Records:
Borrowers are required to annually submit proof of crop insurance,
flood insurance (if applicable), hazard insurance, and property
taxes.
FINANCIAL
INFORMATION:
Account
Identification: 12-4158-0-3-351; 12-3301-0-1-351.
Obligations:
(Direct Loans) FY 01 $79,694,207; FY 02 est $175,000,000; and
FY 03 est $125,000,000.
Range
and Average of Financial Assistance:
$1000 to $100,000.
PROGRAM
ACCOMPLISHMENTS:
In fiscal year 2001, there were 1500 loans obligated out of 2200
applications.
REGULATIONS,
GUIDELINES, AND LITERATURE:
(1) A fact sheet, press release, forms, and directives are available.
Regulations at 7 CFR Part 1436 were first published in the Federal
Register under an interim rule on May 11, 2000. After comments were
evaluated, regulations at 7CFR Part 1436 were revised with the publication
of a final rule on January 18, 2001.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult the appropriate FSA
State office listed in Appendix IV of the Catalog.
Headquarters
Office: Farm Service Agency, Director, Price
Support Division, 14th and Independence Ave., SW., Washington,
DC 20250. Telephone: (202) 720-7935.
Web
Site Address: http://www.fsa.usda.gov/dafp/psd/FSFL.html
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
