Virginia Farmer Finds Win-Win with USDA Storage Facility Loan

David Bosselman grows peanuts, cotton, soybeans, corn and wheat on his Suffolk, Virginia, farm.

By Melanie Lassiter, Virginia FSA County Executive Director and Lauren Moore, FSA Public Affairs Specialist

David Bosselman is a fourth-generation farmer. His sons, Brian and Hunter, are the fifth generation, growing peanuts, cotton, soybeans, corn and wheat on their family farm in Suffolk, Virginia.

“I started working with my daddy and granddaddy when I was about 10 years old. They started me out on a small tractor,” David said. “When I graduated from high school, I went to North Carolina State University for a semester and decided that I’d had enough of that. I came home, and I’ve been farming ever since.”

September 22 is the first day of fall, David’s favorite season. “I like to get out early, feel that air and start harvesting the crops.”

With harvest, comes the annual decision of where to take the crops – a decision driven in part by market prices and yield.  Farmers are faced with the dilemma of selling at harvest or storing in anticipation of improved prices. Many producers, like David, opt to invest in on-farm storage.

David increased on-farm storage capacity by adding two grain bins financed through USDA Farm Service Agency’s Farm Storage Facility Loan (FSFL)

“With all the benefits of the storage loan, it’s a profitable investment for any farmer wanting to build, upgrade, or expand their storage needs,” he said.

Storage facility loans provide low-interest financing for farmers to build or upgrade facilities, such as grain bins, hay barns and bulk tanks, to store their crops. Drying, handling and storage equipment is also eligible, including storage and handling trucks.

David added two grain bins with FSA’s Farm Storage Facility Loan (FSFL).

A second grain bin was needed after a granary was unable to take the Bosselman’s grain last fall. The additional storage allows them to keep their crops longer and have more leverage in the management of their crop sales, improving their bottom line.

“If a farmer needs additional crop storage, this program is the way to go,” David said. “Financially, the payments are very manageable, plus, I can pay the loan off early without incurring any penalties. It’s a win-win situation.”

In addition to taking advantage of the FSA loan, the Bosselmans participate in other USDA programs, including the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs through FSA, and the Environmental Quality Incentives Program through the Natural Resources Conservation Service (NRCS).

With fall harvest underway, now is a great time for farmers to contact their local FSA office to learn more about farm storage equipment and upgrades eligible under the Farm Storage Facility Loan Program. Find your local service center at  farmers.gov.