Washington, D.C. —
U.S. Senator John Thune today sent a letter to U.S. Agriculture Department (USDA) Secretary Edward Schafer asking that USDA's existing Farm Storage Facility Loan Program (FSFLP) be expanded to make livestock producers eligible.
The FSFLP provides low-interest USDA financing to build or upgrade approved farm storage and handling structures. "Livestock producers have told me that this program would be very beneficial to them, especially for obtaining low-interest financing to build storage structures for dried distillers grains," said Thune. "According to current rules, a livestock producer is eligible for the program only if he or she also grows an eligible commodity. Livestock producers who purchase, rather than grow their own feed are currently ineligible."
In his letter Senator Thune told the Secretary:
"Mr. Secretary, the purpose of the FSFLP is to provide low-interest loans for growers of eligible commodities to erect structures for on-farm grain storage, which enables them to more orderly market their grain and consequently realize higher selling prices.
The rapidly expanding ethanol industry has also provided a new feed source to cattle producers, dried distillers grains (DDGs). The production and availability of DDGs as an ethanol by-product has somewhat lessened the impact of higher feed prices for the livestock producers who are able to utilize the DDGs as feed in their livestock operations.
The DDG and nearly all other livestock feeds are easily destroyed by moisture and other weather conditions which mandate that feed be stored with adequate protection. DDGs, as with any other feed, can often be purchased in larger quantities than immediately needed and with discounts which, if adequate storage were available, would enable livestock producers to realize greater profits.
Therefore, Mr. Secretary, in order for USDA to make the FSFLP more equitable to all agricultural producers, I strongly encourage you to modify the Code of Federal Regulations which govern the FSFLP to make livestock producers who do not grow eligible commodities eligible to obtain low-interest loans and financing for structures to house DDGs and other feed products."
"Expansion of the FSFLP program is a win-win scenario for both livestock producers and the ethanol industry. With additional feed storage facilities livestock producers will be able to purchase and store greater quantities of DDGs, as well as other feed products, and be able to take advantage of marketing opportunities. The ethanol industry will benefit by the increased local DDGs demand," stated Thune.
A link to a USDA Farm Storage Facility Loan Program Fact Sheet is below:
http://www.fsa.usda.gov/Internet/FSA_File/frm_storfac_ln_07.pdf
The current FSFLP has provided assistance to South Dakota over the past seven years according to the following table:
The FSFLP provides low-interest USDA financing to build or upgrade approved farm storage and handling structures. "Livestock producers have told me that this program would be very beneficial to them, especially for obtaining low-interest financing to build storage structures for dried distillers grains," said Thune. "According to current rules, a livestock producer is eligible for the program only if he or she also grows an eligible commodity. Livestock producers who purchase, rather than grow their own feed are currently ineligible."
In his letter Senator Thune told the Secretary:
"Mr. Secretary, the purpose of the FSFLP is to provide low-interest loans for growers of eligible commodities to erect structures for on-farm grain storage, which enables them to more orderly market their grain and consequently realize higher selling prices.
The rapidly expanding ethanol industry has also provided a new feed source to cattle producers, dried distillers grains (DDGs). The production and availability of DDGs as an ethanol by-product has somewhat lessened the impact of higher feed prices for the livestock producers who are able to utilize the DDGs as feed in their livestock operations.
The DDG and nearly all other livestock feeds are easily destroyed by moisture and other weather conditions which mandate that feed be stored with adequate protection. DDGs, as with any other feed, can often be purchased in larger quantities than immediately needed and with discounts which, if adequate storage were available, would enable livestock producers to realize greater profits.
Therefore, Mr. Secretary, in order for USDA to make the FSFLP more equitable to all agricultural producers, I strongly encourage you to modify the Code of Federal Regulations which govern the FSFLP to make livestock producers who do not grow eligible commodities eligible to obtain low-interest loans and financing for structures to house DDGs and other feed products."
"Expansion of the FSFLP program is a win-win scenario for both livestock producers and the ethanol industry. With additional feed storage facilities livestock producers will be able to purchase and store greater quantities of DDGs, as well as other feed products, and be able to take advantage of marketing opportunities. The ethanol industry will benefit by the increased local DDGs demand," stated Thune.
A link to a USDA Farm Storage Facility Loan Program Fact Sheet is below:
http://www.fsa.usda.gov/Internet/FSA_File/frm_storfac_ln_07.pdf
The current FSFLP has provided assistance to South Dakota over the past seven years according to the following table:
Year | Number of Loans | Dollars |
2000 | 179 | 4,632,000 |
2001 | 178 | 5,564,535 |
2002 | 92 | 2,405,294 |
2003 | 214 | 6,561,039 |
2004 | 199 | 5,901,511 |
2005 | 198 | 6,803,864 |
2006 | 219 | 8,088,763 |
2007 | 215 | 9,071,069 |