FSA, milk bulk tanks eligible for FSA facility loans

Important dates:

•Feb. 15: FSA Office closed for Presidents Day

•Feb. 26: CRP General sign-up deadline

•March 15: 2016 NAP Pasture and Spring-seeded Annual Crops sales deadline

•March 30: MPP Premium Payment Deduction authorization deadline

•March 31: 2015 Small Grains Loans and LDS request deadline

•Ongoing: Continuous CRP sign-up


Milk bulk tanks eligible for FSA facility loans.

Several commodities, including milk, were recently added as eligible commodities for the Farm Service Agency’s (FSA) low-interest Farm Storage Facility Loan (FSFL) program. To be considered eligible for a loan, the County FSA Committee must determine that the producer owned the milk-producing livestock, be it cows, goats, sheep or buffalo, for at least 30 calendar days.

Applicants must show a need for the milk bulk tank capacity. Producers may be required to provide verifiable records for the County Committee to determine the milk production for the requested storage. They may provide the milk quantity from the highest milk shipment receipt within the past 24 months. The committee will then determine a reasonable quantity of milk produced on an individual day and multiply it by 3. Any existing milk storage will be subtracted from this to determine the additional milk storage needed. If a new bulk tank is being purchased to replace an existing milk bulk tank, then no deduction is required. When necessary, a milk bulk tank can be upgraded to the next available tank size.

As with all FSFL storage structures, FSFL-financed milk bulk tanks must be used for the purpose for which they were constructed, assembled and installed for the entire term of the loan. These facilities must have a useful life of at least 15 years.

FSFL bulk tanks for milk must be properly drained, new and built of such quality that the structure protects the milk from contaminants, supports local climate conditions for the area and be able to be insured.

Eligible permanently affixed bulk milk tank components include bulk tanks, plate coolers, compressor, washing equipment, automation equipment, water lines, affixed tank washers, hot water tanks necessary for milk house use, hot air recovery systems, vats for storage of milk for further processing, milk house structure, condenser, safety equipment meeting OSHA requirements, equipment to maintain and monitor the quality of stored milk, electrical equipment, concrete aprons and floors essential to proper facility operation, as well as flooring suitable for the region where the facility is located, designed according to acceptable guidelines and made to avert water and drainage so the floor does not retain moisture.

For more information about Farm Storage Facility loans, please visit the Rock County FSA Office, or give us a call at 507-283-2369. 


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