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Open for Fiscal Year 2024 Application Windows: June 30, 2024 September 30, 2024
 

What does this program do?

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

Who may apply for this program?

  • Agricultural producers
    • An entity directly engaged in production of agricultural products where at least 50 percent of their gross income coming from agricultural operations.
  • Small businesses
    • Must be located in eligible rural areas and one of the following:
      • Private for-profit entity (sole Proprietorship, Partnership, or Corporation)
      • A Cooperative [including those qualified under Section 501(c)(12) of IRS Code]
      • An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control)
      • A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their Tribal entity without regard to the resources of the Tribal government.
    • Must meet the Small Business Administration size standards in accordance with 13 CFR 121.

NOTE: Agricultural producers and small businesses must have NO outstanding delinquent federal taxes, debt, judgment or debarment.

Who may qualify for loan guarantees?

Eligible borrowers are:

  • Rural small businesses.
  • Agricultural producers.

What are the borrowing restrictions for loan guarantees?

  • Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
  • Private-entity borrowers must demonstrate that loan funds will remain in the U.S.

What is an eligible area?

  •  Projects must be located in rural areas with populations of 50,000 residents or less*. 
  •  Check eligible rural area

Agricultural producers may submit projects to be located in non-rural areas as long as the project is associated with an on-site production operation.

How may the funds be used?

Funds may be used for the purchase and installation of renewable energy systems, such as:

  • Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).
  • Geothermal for electric generation or direct use.
  • Hydropower below 30 megawatts.
  • Hydrogen.
  • Small and large wind generation.
  • Small and large solar generation.
  • Ocean (tidal, current, thermal) generation.

Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

  • High efficiency heating, ventilation and air conditioning systems (HVAC).
  • Insulation.
  • Lighting.
  • Cooling or refrigeration units.
  • Doors and windows.
  • Electric, solar or gravity pumps for sprinkler pivots.
  • Switching from a diesel to electric irrigation motor.
  • Replacement of energy-inefficient equipment.

Energy Efficiency Improvement applications must contain an Energy Audit, or Energy Assessment (depending on Total Project Costs) that complies with Appendix A to RD Instructions 4280-B

Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

What funding is available?

  • Loan guarantees on loans up to 75 percent of total eligible project costs.
  • Grants for up to 50 percent of total eligible project costs.
  • Combined grant and loan guarantee funding up to 75% of total eligible project costs.

What is the maximum amount of a loan guarantee?

The loan guarantee percentage is published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2024 will receive an 80 percent guarantee.

What are the loan guarantee terms?

The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years.

What are the interest rates for the loan guarantee?

  • Interest rates are negotiated between the lender and borrower.
  • Rates may be fixed or variable.
  • Variable interest rates may not be adjusted more often than quarterly.

What are the applicable fees for the loan guarantee?

  • There is an initial guarantee fee, currently 1 percent of the guaranteed amount.
  • There is a guarantee retention fee, currently 0.25 percent of the outstanding principal balance, paid annually.
  • Reasonable and customary fees for loan origination are negotiated between the borrower and lender.

What are the underwriting requirements for the loan guarantee?

  • The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
  • The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
  • The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
  • Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions.

What are the grant terms?

Renewable Energy System Grants:

  • $2,500 minimum.
  • $1 million maximum.
Energy Efficiency Grants:
  • $1,500 minimum.
  • $500,000 maximum.

Are there additional requirements?

  • Applicants must provide matching funds if applying for a grant only.
    • 50% Federal grant share limited to projects that meet one of the following:
      • Project is a Renewable Energy System (RES), or RES retrofit that produces zero greenhouse gas emissions (Carbon Dioxide, Methane, Nitrous Oxide, or Fluorinated Gases) at the project level.
      • Project is located in an Energy Community as defined in 26 USC 45(b)(11)(B) and determined by the Department of the Treasury.
      • Project is an Energy Efficiency Improvement (EEI).
      • Is a project proposed from an eligible Tribal Corporation or other Tribal Business entity (including agriculture operations) as described in 7 CFR part 4280.
    • All other projects are limited to 25% Federal grant share
  • Applicants must provide at least 25 percent of the project cost if applying for loan.
  • All projects must have technical merit and utilize commercially available technology. 
  • Energy efficiency projects require an energy audit or assessment.
  • All projects require an environmental review prior to award or construction

How do we get started? Applications for this program are accepted year-round at your local office

Who can answer questions?

Contact your State Rural Development Energy Coordinato

What law governs this program?

Why does USDA Rural Development do this?

This program helps increase American energy independence by increasing the private sector supply of renewable energy and decreasing the demand for energy through energy efficiency improvements. Over time, these investments can also help lower the cost of energy for small businesses and agricultural producers.

NOTE: Because citations and other information may be subject to change, please always consult the program regulations listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.

 
 
 
 
 

 

 

The Farm Storage Facility Loan Program (FSFL) provides low-interest financing so producers can build or upgrade permanent and portable storage facilities and equipment. Eligible commodities include grains, oilseeds, peanuts, pulse crops, hay, hemp, honey, renewable biomass commodities, fruits and vegetables, floriculture, hops, maple sap, maple syrup, milk, cheese, yogurt, butter, eggs, meat/poultry (unprocessed), rye and aquaculture. Eligible facility types include grain bins, hay barns, bulk tanks, and facilities for cold storage. Drying and handling and storage equipment is also eligible, including storage and handling trucks. Eligible facilities and equipment may be new or used, permanently affixed or portable.

Since its inception in May 2000, more than 33,000 loans have been issued for on-farm storage, increasing storage capacity by 900 million bushels.

FSFL is an excellent financing program for on-farm storage and handling for small and mid-sized farms, and for new farmers. Loan terms vary from 3 to 12 years. The maximum loan amount for storage facilities is $500,000. The maximum loan amount for storage and handling trucks is $100,000. In 2016 FSA introduced a new loan category, the microloan, for loans with an aggregate balance up to $50,000. Microloans offer a 5 percent down payment requirement, compared to a 15 percent down payment for a regular FSFL, and waive the regular three-year production history requirement.

 

Farm Storage Facility Loan Program Overview

• Corn, grain sorghum, wheat, oats or barley harvested as other-
than-whole grain;
• Other grains (triticale, speltz and buckwheat);
• Pulse crops (lentils, chickpeas and dry peas);
• Hay;
• Honey;
• Renewable biomass;
• Fruits (includes nuts) and vegetables - cold storage facilities;
• Floriculture;
• Hops;
• Malted small grains;
• Maple sap;
• Maple syrup;
• Milk;
• Cheese;
• Butter;
• Yogurt;
• Eggs;
• Meat/poultry (unprocessed);
• Rye; and
• Aquaculture;
• Hemp;
• Seed Cotton;
• Wool.


Farm Storage Facility Loans Fact Sheet
July 2022
1
OVERVIEW
Farm Storage Facility Loans (FSFLs) provide low-interest financing for
producers to store, handle and/or transport eligible commodities they
produce. This includes the following:
• Acquire, construct or upgrade new or used, portable or permanently
affixed, on-farm storage and handling facilities;
• Acquire new or used storage and handling trucks; and
• Acquire portable or permanently affixed storage and handling
equipment.
The program is administered by the U.S. Department of Agriculture
(USDA) Farm Service Agency (FSA).
A producer may borrow up to $500,000 per loan, with a minimum down
payment of 15 percent. Loan terms are up to 12 years, depending on the
amount of the loan. Producers must demonstrate storage needs based on
three years of production history. FSA also provides a microloan option
that, while available to all eligible farmers and ranchers, also should be
of particular interest to new or small producers where there is a need for
financing options for loans up to $50,000 at a lower down payment with
reduced documentation.
Applicants for all loans will be charged a nonrefundable $100 application
fee.
MICROLOAN OPTION
Producers who select the microloan option can borrow up to $50,000,
with the minimum down payment reduced to 5 percent and shorter
loan terms. Producers can self-certify the storage needs of the eligible
commodity and are not required to demonstrate storage needs based on
production history.
How It Works
ELIGIBLE COMMODITIES
The following commodities are eligible:
• Corn, grain sorghum, rice, soybeans, oats, peanuts, wheat, barley
or minor oilseeds harvested as whole grain;
ENVIRONMENTAL EVALUATION REQUIREMENTS
These loans must be approved by the local FSA state or county
committee before any site preparation and/or construction can be started.
All loan requests are subject to an environmental evaluation. Accepting
delivery of equipment, starting any site preparation or construction
before loan approval may impede the successful completion of an
environmental evaluation and may adversely affect loan eligibility.
USDA is an equal opportunity provider, employer, and lender.
WHO IS ELIGIBLE?
An eligible borrower is any person who is a landowner, landlord,
leaseholder, tenant or sharecropper. Eligible borrowers must be able to
show repayment ability and meet other requirements to qualify for a
loan. Contact an FSA office for more details.
2
FARM STORAGE FACILITY LOANS - July 2022
ELIGIBLE FACILITIES, EQUIPMENT AND UPGRADES
The following types of new/used facilities and upgrades are eligible and
must have a useful life for at least the term of the loan:
• Conventional cribs or bins;
• Oxygen-limiting structures and remanufactured oxygen-limiting
structures;
• Flat-type storage structures;
• Electrical equipment and handling equipment, excluding the
installation of electrical service to the electrical meter;
• Safety equipment, such as interior and exterior ladders and lighting;
• Equipment to improve, maintain or monitor the quality of stored
grain;
• Concrete foundations, aprons, pits and pads, including site
preparation, off-farm labor and material, essential to the
proper operation of the grain storage and handling equipment;
• Renovation of existing farm storage facilities, under certain
circumstances, if the renovation is for maintaining or replacing
items;
• Concrete foundations, aprons, pits and pads, including site
preparation, off-farm labor and material, essential to the
proper operation of the grain storage and handling equipment;
• Renovation of existing farm storage facilities, under certain
circumstances, if the renovation is for maintaining or replacing
items;
• Grain handling and grain drying equipment determined by the
Commodity Credit Corporation to be needed and essential to the
proper operation of a grain storage system (with or without a loan
for the storage facility);
WHERE TO FILE THE APPLICATION
Loan applications should be filed in the administrative FSA county
office that maintains the farm’s records.
• Structures that are bunker-type, horizontal or open silo structures,
with at least two concrete walls and a concrete floor;
• Structures suitable for storing hay built according to acceptable
design guidelines;
• Structures suitable for storing renewable biomass;
• Bulk tanks for storing milk or maple sap;
• Cold storage buildings, including prefabricated buildings that
are suitable for eligible commodities. Also may include cooling,
circulating and monitoring equipment and electrical equipment,
including labor and materials for installation of lights, motors and
wiring integral to the proper operation of a cold storage facility;
and
• Storage and handling trucks, including refrigerated trucks.
FOR MORE INFORMATION
For more information, visit farmers.gov/recover. Find your local
USDA Service Center at farmers.gov/service-center-locator.
This fact sheet is for informational purposes only; other eligibility
requirements or restrictions may apply.
Notes:
• Eligible storage structures and handling equipment, having a useful life for the entire term of the loan, may be permanently affixed or portable.
• Facilities built for commercial purposes and not for the sole use of the borrower(s) are not eligible for financing.
Other examples of equipment include but are not limited to the following:
• baggers
• boxers
• brush polishers
• bulk bin tippers
• case palletizers
• cement flooring
• circulation fans
• cold dip tanks
• conveyors
• drying tunnels
• dumpers
• electrical equipment
• food safety-related
equipment
• hoppers
• hydrocoolers
• hydrolifts
• ice machines
• quality graders
• refrigeration units or systems
• roller spray units
• safety equipment meeting Occupational
Safety and Health Administration
requirements
• sealants
• sizers
• sorting bins and/or tables
• storage and handling trucks
• washers
• waxers
• weight graders

 

 

Planting season is quickly approaching for Indiana’s 94,000 farmers. With the warm weather and sunshine, Hoosier motorists will also see more large slow-moving farm equipment traveling Indiana’s rural roads and highways.

The Indiana State Department of Agriculture, Indiana Department of Homeland Security, Indiana Department of Transportation, Indiana State Police and Hoosier Ag Today want to encourage motorists to slow down, be alert and be patient on roadways this spring.

“Indiana farmers will be working hard this spring to ensure their crops are planted safely, timely and efficiently,” said Lt. Gov. Suzanne Crouch, Secretary of Agriculture and Rural Development. “Whether you live in rural, urban or suburban Indiana, remain alert on the road this spring as you may encounter large farm equipment moving between fields.”

In 2021, four occupants were involved in crashes with farm equipment in Indiana which resulted in two deaths, according to the National Highway Traffic Safety Administration*.

“With the onset of warmer weather, we will begin to see more and more farm machinery on our rural roads and highways,” said Doug Carter, Indiana State Police Superintendent. "Patience, courtesy, undivided attention, and understanding will help everyone get to where they need to be safely.  Let’s all do our part to ensure our farmers enjoy a safe planting season.”

 

 

While the term “farm equipment” encompasses a wide range of vehicles, the most common types motorists will encounter during planting season include sprayers, tractors pulling planters or tillage equipment, and large trucks hauling agricultural products. These vehicles are wide, sometimes taking up most of the road, and often travel at speeds no greater than 25 mph.

The following list includes several safety tips for motorists approaching large farm equipment:

  • Farmers will pull over when they are able to let motorists pass, but it may take time for them to get to a safe place to do so.
  • Be patient. Farm equipment is wide, sometimes taking up most of the road.
  • Be careful when passing. Do not pass in a designated “No Passing Zone” or within 100 feet of any intersection, railroad grade crossing, bridge, elevation structure or tunnel.
  • Do not try to pass slow-moving farm equipment on the left without ensuring that the farmer driving is not planning a left turn. It may appear that the driver is pulling over to allow a pass when the farmer is actually preparing to turn. You will drive right into its path, endangering yourself and the farmer.
  • Avoid tailgating, as some farm equipment might have to make sudden stops along the road.
  • Allow plenty of time to get to a destination, be aware of alternate routes and avoid distractions.

Indiana State Department of Agriculture Director Don Lamb wants to remind motorists that farmers work hard to ensure they are being as safe as possible.

“As a farmer myself I have heard of way too many accidents involving farm equipment and motorists on rural Indiana roads,” said Lamb. “Unfortunately, crashes and deaths occur each year during this busy time. We want to encourage motorists to slow down, be alert and be patient when sharing the roads with farmers this busy spring season.”

For a list of safety tips, click here or visit isda.in.gov. The following organizations will be working together to share this important safety message during planting season: Hoosier Ag Today, Indiana Department of Homeland Security, Indiana Department of Transportation and Indiana State Police.

 Indiana Grown held a member event Tuesday focused on encouraging schools, hospitals, restaurants and more to buy local. The event featured 57 Indiana Grown members who are ready and able to expand into larger markets. 

Members who attended the showcase were highlighting their locally grown, raised, processed and crafted items, like wagyu beef, pork, Indiana wine, craft spirits, specialty produce, sauces, spices, coffee and more.

The event featured guests from Indiana, Ohio and Kentucky shopping for their specialty store, distribution business, hospital or school cafeteria, restaurant or grocery store. 

Isaac Hughes with Ideal Meat & Specialty Foods was looking for unique products from local producers to offer to their customers.

"I love events like this because it gives me an opportunity to see things I normally don't see and that I would be interested in distributing," said Hughes. "We also enjoyed visiting with our current business partners and welcomed their suggestions of who to see at the show. This event was a great opportunity for me to connect with Indiana Grown members I might not have known existed."

Indiana Grown was excited to host this first time event said Caroline Patrick, Indiana Grown director. 

“This brand-new event for Indiana Grown was a huge success and we are so thankful to the many members who attended,” said Patrick. “When expanding your small business, it can be hard to be connected with the right audience and this was a great opportunity for our members and for our food buying attendees to feature locally grown, made and crafted products in their schools, hospitals, restaurants, catering services and more across the state.”

Tamika Catchings with Tea's Me Café from Indianapolis stated she appreciated her fellow members and Indiana Grown teammates. 

"Being an Indiana Grown member for only a year and a half, we were grateful to be invited to this first-ever event," said Catchings. "Walking around and visiting with other Indiana Grown members has been a huge asset because we can seek other members who want to work with us and leverage both of our products for greater success." 

Jennifer Wiese of BeeFree, whose company was started by a mom looking for gluten free snacks for her son who was diagnosed with Autism, highlighted that this event was a great success. 

"We loved the opportunity to introduce our products to new customers, and we love sharing our story that our snacks were created by a mom on a mission and our products are sweetened with honey, contain real ingredients that are the perfect on-the-go snack," said Wiese.

Companies who attended the showcase are listed below:

  • Daniel’s Vinyard – McCordsville
  • Pig’s Tale Charcuterie – Indianapolis
  • Sip & Share Wines - Indianapolis
  • Marsha’s Specialty Desserts & Tierney’s Catering - Avon
  • 550 Wagyu - Lafayette
  • Owen Valley Winery - Spencer
  • Uncle Al’s Breading & Auntie B’s Custom Blending - Converse
  • Agua Blanca Shrimp - Indianapolis
  • Voils Family Farm - Mitchell
  • Abby’s Elderberry - Otisco
  • Cindy’s Candy Corner - Hymera
  • Bee Great - Churubusco
  • Kim’s Key Lime Products - Indianapolis
  • Little Family Foods – Terre Haute
  • Your Grandpa’s Old Fashioned – Carmel
  • Indiana Soap Company – Greenfield
  • Cute as a Cupcake! Cupcakery & Bake Shop – Merrillville
  • Three Flock Farm – Ellettsville
  • Amish Country Dairy – Shipshewana
  • PopKorn Kernels With A Twist – Bloomington
  • Pa and Ma’s BBQ Sauce – Indianapolis
  • Tulip Tree Creamery – Indianapolis
  • West Fork Whiskey Co. – Indianapolis
  • Spicekick Seasoning – Fishers
  • Fungi Meadows – Logansport
  • Miller’s Orchard – Nappanee
  • Fish Lake Organic – Goshen
  • Little Way Farm and Homestead – Vevay
  • MKONO Farm – Bloomington
  • Needmore Coffee Roasters – Bloomington
  • Garcia’s Gardens – Indianapolis
  • Metal Honey Foods – Indianapolis
  • Pure Memory Water – Indianapolis
  • Risin’ Creek Creamery – Martinsville
  • Linneweber's Sauce Company – Vincennes
  • Hunt Family Farm – Amboy
  • Brick House Vinaigrettes – Indianapolis
  • Healthy Hoosier Oil – Converse
  • Nature’s Tea Company – Indianapolis
  • Aahaa Chai – Indianapolis
  • Bloomington Farm Stop Collective – Bloomington
  • Celtic Glen Heritage Livestock – Spencer
  • Middle Davids Candles – Franklin
  • Kei2Health – Indianapolis
  • Eat Surreal – Indianapolis
  • Wild Spirit Coffee Co- Bloomfield
  • Slaughter Orchard & Cidery – Bloomington
  • Beehive Body Co – Mount Summit
  • Tea's Me Cafe – Indianapolis
  • Apricot Sun – Carmel
  • Groomsville Popcorn – Tipton
  • BeeFree – Noblesville
  • Culver Duck – Middlebury
  • Bread & Roses Gardens – Bloomington
  • My Sugar Pie – Zionsville
  • Newfangled Confections – Indianapolis
  • 4 Birds Bakery – Indianapolis

Indiana Grown is excited to continue this showcase into 2025 and beyond.

Gov. Eric Holcomb has proclaimed March 19 as National Ag Day in Indiana.

“Agriculture is the backbone of our rural communities, and this sector is a large employer of Hoosiers and contributes so much to our state, both economically and socially,” said Lt. Gov. Suzanne Crouch, Secretary of Agriculture and Rural Development. “Today, we not only celebrate all Hoosiers involved in any capacity, but we thank them also!”

National Ag Day, March 19, 2024, highlights agriculture’s contributions to our state and local economies and allows producers, agricultural associations, corporations, universities, government agencies and countless others across America to recognize and celebrate the abundance provided by American agriculture.

Indiana is the ninth largest agricultural producing state in the country. The state has over 94,000 farmers, and agricultural production is valued at over $18 billion. Indiana farmers cultivate over 14.6 million acres and establish over 47,000 soil conservation practices each year which kept an estimated 1.8 million tons of soil in the farm fields. 

Indiana’s top commodities are:

  • Number one producer of popcorn, gourds and duck
  • Number two producer of pumpkins
  • Number three producer of spearmint, turkeys and total eggs
  • Number four producer of peppermint and soybeans
  • Number five producing state for corn and hogs
  • Number six producer of watermelons
  • Number ten producing state for maple syrup and hemp for floral (CBD and other cannabinoid usage)

“Indiana’s agriculture breadth is deep and wide. We have traditional row crop farmers and animal producers, we have farmers who grow popcorn for movie theaters and corn for tortilla chips, we have food manufacturers who make snack cakes that are beloved worldwide, and we have organic farmers and farmers that sell directly to restaurants and consumers,” said Don Lamb, ISDA director. “My favorite part about agriculture in Indiana is that everyone has a seat at our table. Today, we honor them and extend our gratitude.”

  1. A Taste of Lamb Event Planned for March
  2. Apply for a YES Grant Through Indiana 4-H Foundation

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