The Farmer Logo

Help available for on-farm grain storage

New program helps fill need caused by damaged grain storage facilities, creating limited commercial capacity.

March 24, 2023

3 Min Read
Grain bins on farm
STORAGE AID: Minnesota farmers are encouraged to apply for assistance in rebuilding or repairing grain storage damaged in storms between Dec. 1, 2021, and Aug. 1, 2022.Luca Piccini Basile/Getty Images

Minnesota producers can apply for cost-share assistance through the Emergency Grain Storage Facility Assistance Program (EGSFP) if they are in counties affected by eligible disaster events caused by severe storms.

USDA Secretary Tom Vilsack recently announced a new program providing cost-share assistance for the construction of new grain storage capacity and drying and handling needs, to support the orderly marketing of commodities. An initial allocation of $20 million in cost-share assistance is available to agricultural producers in affected counties impacted by the damage to or destruction of large commercial grain elevators as a result of natural disasters from Dec. 1, 2021, to Aug. 1, 2022. The application period opens later this month and closes Dec. 29.

“Weather events in 2021 and 2022 in several states caused catastrophic losses to grain storage facilities on family farms as well as at large commercial grain elevators, leaving stored grain exposed to the elements and affecting storage and commodity marketing options for many producers,” Vilsack says. “USDA heard from congressional leaders, including Minority Leader [Mitch] McConnell, who identified a gap in our disaster assistance toolkit and used our Commodity Credit Corp. authority to act more quickly than waiting for specific legislation. This new program will provide cost-share assistance to help producers address their on-farm storage capacity needs that are necessary for marketing grain.” 

In addition to Minnesota, producers in counties in Kentucky, South Dakota, Illinois, Indiana, Iowa, Missouri, North Dakota and Tennessee may also qualify for the program.

This assistance from USDA’s Farm Service Agency is designed to help producers affected by the December 2021 tornadoes that passed through 11 counties in Kentucky, as well as producers in Minnesota, Illinois, Indiana, Iowa, Missouri, North Dakota, South Dakota and Tennessee affected by eligible disaster events in 2022.

Eligibility

Maps showing the location of damaged grain facilities in Minnesota, South Dakota, Kentucky and surrounding eligible areas are available online. These maps depict damaged storage facility locations and the affected counties within a 30-mile radius of these facilities where producers may be eligible to apply for EGSFP benefits if they can demonstrate a need for additional on-farm grain storage capacity.

Additionally, FSA may determine a need for EGSFP assistance in counties in other states and regions during the application period where an eligible disaster event has damaged storage facility locations. Eligible disaster events include hurricanes, tornadoes, floods, derechos, straight-line winds and winter storms that occurred between Dec. 1, 2021, and Aug. 1, 2022.

EGSFP helps producers build permanent or temporary on-farm grain storage capacity, restore existing storage capacity, and purchase drying and handling equipment in affected counties.

The following types of new and used facilities and upgrades are eligible for cost-share assistance and must have a useful life of at least three years.

  • conventional-type cribs or bins designed and engineered for grain storage

  • open buildings with two end walls

  • converted storage structures

  • asphalt, concrete or gravel floors with grain piles and tarp covering

  • ag baggers (including bags)

On-farm grain storage structures may account for aeration and drainage, and may require loading or unloading augers, drying and handling equipment.

How to apply

Producers must submit the EGSFP application, form FSA-413, and any additional required forms to their FSA county office either in person, by mail, email or fax starting later in March and by the Dec. 29 deadline. Form FSA-413-1, Continuation Sheet for EGSFP, must be submitted with the FSA-413 when a group of producers applies for assistance.

Payment calculation

FSA will use the producer’s self-certified cost of the additional on-farm grain storage capacity or drying and handling equipment needed multiplied by the producer’s share of grain.

This amount will then be multiplied by the cost-share factor of 75% or 90%. Eligible producers who certify they are socially disadvantaged, limited-resource, beginning or veteran farmers or ranchers by filing form CCC-860 with FSA will receive the higher 90% cost-share rate.

More information

For more information visit the program program webpage or the EGSFP fact sheet. USDA also has an existing Farm Storage Facility Loan Program that can immediately provide low-interest financing for eligible producers who may not be eligible for EGSFP but need on-farm storage capacity.

Source: USDA

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like