FSA

HANDBOOK

Farm Storage Facility Loan Program

For State and County Offices

SHORT REFERENCE

1-FSFL

(Revision 3)

UNITED STATES DEPARTMENT OF AGRICULTURE

Farm Service Agency

Washington, DC 20250

To access the transmittal page click on the short reference
.
UNITED STATES DEPARTMENT OF AGRICULTURE

Farm Service Agency

Washington, DC 20250

Farm Storage Facility Loan Program

1-FSFL (Revision 3) Amendment 5

Approved by: Deputy Administrator, Farm Programs

Amendment Transmittal

A Reasons for Amendment

Subparagraph 5 A has been amended to clarify that collateral may, with prior approval, be used

by the borrower to temporarily store other agricultural-related items until the next harvest season.

Subparagraph 32 A has been amended to provide new eligible commodities, hemp, seed cotton 

and wool.

Subparagraph 33 B has been amended to add “teff” as an eligible grain.

Subparagraph 33 C has been amended to add “ginseng” as an eligible perishable commodity.

Subparagraph 33 D has been amended to add purchased hay is ineligible for FSFL.

Subparagraphs 33 N, O, and P have been amended to add hemp, seed cotton and wool as FSFL 

eligible.

Subparagraph 34 A has been amended to add roller creepfeeder and tobacco as FSFL ineligible.

Subparagraph 36 B has been amended to:

• remove secondhand material as ineligible items for FSFL’s

• add a note that a down payment to the contractor, dealer, supplier or vendor does not mean 

the facility or equipment was purchased.

Subparagraph 36 D has been amended to add:

• that storage area for office space, store front, restrooms or breakrooms and condominium

storage are considered ineligible for FSFL financing

• an example to clarify eligible storage space.

6-7-22 Page 1
Amendment Transmittal (Continued)

A Reasons for Amendment (Continued)

Subparagraph 40 A has been amended to provide that STC must review each CCC-185 and 

approve the CCC-185D for FSFL’s with asphalt flooring.

Subparagraph 42 A has been amended to remove the requirements that the storage and handling 

trucks be $100,000 or less, have a GVW of 60,000 or less and be less than 15 years old.

Subparagraph 42 B has been amended to include replacement parts, warranty plans, and 

maintenance plans as ineligible and will not be financed in the FSFL.

Subparagraph 43 B has been amended to include:

• hanging carcass rail, winch, and hay squeeze are considered eligible equipment

• remove roller creepfeeder as eligible equipment

• examples of seed cotton packing, handling, storage, and transport equipment eligible for 

FSFL

• a note clarifying DAFP approval of wind turbines and when to contact the National Office

with questions about eligible and ineligible drying and handling equipment.

Paragraph 45 has been added to provide the types of structures for wool storage.

Paragraph 46 has been added to provide the types of structures for hemp storage.

Subparagraph 49 E has been added to provide provisions for storage need requirements for seed 

cotton.

Paragraph 55 has been added to provided storage need requirements for wool.

Paragraph 56 has been added to provide storage need requirements for hemp.

Subparagraph 57 A has been amended to add reference to the 2008 Farm Bill authorization for 

the 1 partial and 1 final principal disbursement.

Subparagraph 58 C has been amended to add that:

• fees for filing and recording UCC’s, instruments and other transactions must be processed 

using DLS

• if a collateral lien search is determined necessary by OGC for underlying real estate, the lien 

search is paid for by CCC.

Subparagraph 59 A has been amended to further clarify provisions for a maximum FSFL 

microloan amount and when a severance agreement is not required.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2
Amendment Transmittal (Continued)

A Reasons for Amendment (Continued)

Subparagraph 61 A has been amended to add that an FSFL disbursement calculator will be 

completed in DLS before the FSFL is disbursed and the calculator must be filed in the producer’s 

FSFL folder.

Subparagraph 61 C has been amended to include that the down payment must not include the 

trade-in value.

Subparagraph 68 A has been amended to clarify applicants who have filed bankruptcy must work 

with the bankruptcy trustee to determine if the applicant can obtain new debt and the State Office

must consult with OGC before FSFL approval.

Subparagraph 69 B has been amended to clarify FSFL’s with an aggregate outstanding balance 

of $50,000 or less, a financial analysis for entity members with the greatest shares is not required 

unless the STC determines it is necessary on a Statewide basis and not on a case-by-case basis.

Subparagraph 74 C has been amended to clarify required actions when the applicant’s 

administrative county is different from where the FSFL will be physically located.

Subparagraph 82 A has been amended to provide:

• State and County Office staff must use Data Facts, Inc. to order FSFL credit reports

• that State and County Offices must refer to subparagraph 85 G to determine if a credit report 

is required for members of the entity with the greatest shares.

Subparagraph 82 E has been added to provide that Data Facts, Inc. uses two different portals 

when ordering FSFL credit reports for individuals, joint producers, and entities.

Subparagraph 82 F has been amended to provide:

• FICO scores are now available for individual/joint reports 

• resources to assist with understanding and evaluating FICO scores and credit reports.

Subparagraph 82 H has been amended to clarify instructions for completing the monthly FSFL

credit report reconciliation report.

Subparagraph 82 J has been amended to clarify instructions when requesting initial setup 

instructions to order FSFL credit reports.

Subparagraph 82 K has been amended to:

• clarify procedure for resetting expired passwords when ordering FSFL credit reports.

• provide alternative credit report options.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3
Amendment Transmittal (Continued)

A Reasons for Amendment (Continued)

Subparagraph 85 F has been amended to clarify a reasonable timeframe for completing a 

financial analysis.

Subparagraph 85 G has been amended to add a note about entity aggregate balance of $50,000 or 

less.

Paragraph 86 has been added to provide information about the FSFL Loan Recommendation

Approval Authority Training Program.

Subparagraph 96 B has been amended to provide that RMA’s Pasture, Rangeland and Forage 

Program, PFR insurance is sufficient to insure hay.

Subparagraph 96 C has been amended to add evidence of insurance must be provided by the 

borrower and documented on CCC-195 Servicing when received by the County Office.

Subparagraphs 98 A and B have been amended to provide CCC must be listed on the automobile 

insurance as loss payee or mortgage payee.

Subparagraph 99 A has been amended to clarify the flood insurance requirements for storage 

facilities.

Subparagraph 109 A has been amended to clarify the requirement for environmental evaluations.

Subparagraph 110 A has been amended to update information for preparing environmental 

evaluations.

Subparagraph 121 B has been amended to clarify a DAFP waiver is required to change collateral 

used for security after FSFL disbursement.

Subparagraph 121 E has been amended to provide the Irrevocable Letter of Credit is considered

sufficient security for all FSFL’s (regardless of the loan amount) when all requirements are met

according to this paragraph and a financial analysis is not required, unless a more restrictive 

policy has been set by STC on a Statewide basis and not on case-by- case basis.

Subparagraph 122 I has been amended to provide the weblink for NASS Land Values and 2021

Summary.

Subparagraph 158 E has been amended to remove the requirement that State Offices must email 

the FSFL details to the National Office when a FSFL has been extended beyond 12 months.

Subparagraph 176 B has been amended to add instructions to document FSFL loan increase or 

decrease on the CCC-185 and to initial and date the change.

Subparagraph 195 A has been amended to require 2nd party review of the CCC-186 after it is 

printed.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4
Amendment Transmittal (Continued)

A Reasons for Amendment (Continued)

Subparagraph 196 B has been amended to provide additional guidance for when a CCC-297 is 

not required.

Subparagraphs 209 A, B, and C have been amended to clarify process on how FSFL reminder 

letters are mailed, State and County Office action after mailing, and to add a note about FSFL 

servicing during the pandemic.

Subparagraph 210 A has been amended to:

• remove that County Office must provide an annual reminder and notification letter to the 

borrower

• add a County Office must complete the CCC-195 Servicing for FSFL’s that are physically 

located in their county, but the FSFL is handled administratively in another county.

Subparagraph 210 C has been added to clarify when a State may edit the CCC-195 Servicing to 

account for individual State laws.

Subparagraph 210 D has been added to clarify the annual State Office CCC-195 Review Process.

Subparagraph 210 E has been added to clarify procedure for submitting National CCC-195 

Servicing Report to the National Office.

Subparagraph 211 E has been amended to refer to FSFL deferral policy in paragraph 247.

Subparagraph 215 A has been amended to update when County Offices are to conduct collateral 

checks for all outstanding loans.

Subparagraph 218 C has been amended to add that CED is the authorized representative to 

release vehicle title liens unless documented differently in the STC or COC minutes.

Subparagraph 242 B has been amended to add that real estate lien filings must be used as the 

recoverable fee in DLS when real estate taxes must be paid by CCC and repaid by the borrower.

Paragraph 247 has been added to provide financial hardship annual installment deferral policies

and procedures.

Subparagraph 262 G has been amended to remove from the timeline for FSFL annual 

requirements that an annual reminder and notification letter will be mailed from the County 

Office.

Subparagraph 291 A has been updated to clarify National Office contacts to report bankruptcy 

notifications and adds that bankruptcies must be entered in FSAFS according to 63-FI.

Subparagraph 291 C has been amended to clarify State and County Office action for bankruptcy 

reorganization plans.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5
Amendment Transmittal (Continued)

Amendment Transmittal (Continued)

Subparagraph 291 D has been added to require State Office reporting requirements to National 

Office.

Exhibit 2 has been amended to add or clarify definitions for eligible facility loan commodities,

mortgage, nonmoveable or nonsaleable collateral, off-farm labor, and storage and handling truck.

Exhibit 28 has been amended to provide updated instructions for CCC-185 and example of 

updated CCC-185. The updated CCC-185 asks if the FSFL project will include clean energy or 

energy efficient equipment.

Exhibit 30 has been amended to:

• update item 10Q to 10P on the instructions for completing CCC-195A

• provide an example of the revised version of the form with the following changes:

• correct the reference on CCC-195A Item 10 O to paragraph 195

• remove the reference to 2-FSFL Part 8 in Item 10 P and Item 10Q is now Item 10P.

Exhibit 31 has been amended to:

• update Item 10 G to 10 F on the instructions for completing CCC-195B

• provide an example of the revised version of the form with the following changes:

• correct the reference on CCC-195B Item 10 E to paragraph 195

• remove the reference to 2-FSFL Part 8 in Item 10 F and Item 10G is now Item 10F. 

Exhibit 52 has been amended to provide the County Office must review 2-FSFL, paragraph 52 

for paying the appraisal fee using DLS.

Exhibit 70 has been amended to include the most current automated version of the notification 

and reminder letter.

Exhibit 83 has been added to provide an example of an Adverse Determination Letter for Annual 

Installment Deferral.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6
Amendment Transmittal (Continued)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 7

Page Control Chart

TC Text Exhibit

1-4

7, 8

9

1-5, 1-6

2-1 through 2-6

2-10.5, 2-10.6 (add)

2-11, 2-12

2-15, 2-16

2-19, 2-20

2-27, 2-28

2-33 through 2-36

2-39 through 2-44

2-45

2-46 (add)

2-47, 2-48 (add)

2-49 (add)

3-5 through 3-8

3-19, 3-20

3-21 through 3-24 (add)

4-1 through 4-6

4-9 through 4-12

4-27 through 4-30

4-47, 4-48

5-1 through 5-6

5-6.5, 5-6.6 (add)

5-11 through 5-14

5-15 (add)

6-1 through 6-22

6-22.5, 6-22.6

7-3 through 7-6

7-15, 7-16

9-15

10-15, 10-16

11-39 through 11-42

12-1 through 12-4

12-7, 12-8

12-13, 12-14

12-17, 12-18

12-81, 12-82

12-87, 12-88

12-89 through 12-104 (add)

13-5, 13-6

14-1 through 14-4

1, pages 1-4

2, pages 5-8

28, pages 1-4

30, pages 1, 2

 page 3

31, pages 1, 2

 page 3

52, page 1

70, page 1

83, page 1 (add)
.
Table of Contents

Page No.

Part 1 Basic Provisions

Section 1 General Provisions

1 Overview.............................................................................................................. 1-1

2 FSFL Publicity Requirements.............................................................................. 1-3

3 Internet Web Sites................................................................................................ 1-4

4 FSFL Information ................................................................................................ 1-5

5 Facility, Drying and Handling Equipment and Storage and Handling Trucks 

Purpose and Useful Life ...................................................................................... 1-6

6 FSFL Signature Authority Documentation Requirements................................... 1-7

7-9 (Reserved)

Section 2 Approval Authorities

10 FSFL Approval Authority.................................................................................... 1-31

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval ...... 1-37

12 Using Alternative Options for In-Person STC or COC Meetings ....................... 1-41

13 Notification to Applicant of Approval or Disapproval........................................ 1-41

14 FSFL Approval Expiration .................................................................................. 1-42

15-24 (Reserved)

Section 3 Relief and Other Actions

25 Waivers................................................................................................................ 1-57

26 Appeals, Misaction, and Misinformation............................................................. 1-59

27-31 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 TC Page 1
Table of Contents (Continued)

Page No.

Part 2 FSFL Provisions

32 Eligible Commodities, Structure and Storage Needs Table................................. 2-1

33 Eligible FSFL Commodities................................................................................ 2-2

34 Ineligible FSFL Commodities.............................................................................. 2-11

35 Eligible Applicants............................................................................................... 2-12

36 Eligible and Ineligible Structures and Equipment ............................................... 2-15

37 Eligible and Ineligible Structures for Hay and Renewable Biomass Storage...... 2-20

38 Eligible and Ineligible Structures for Eligible Perishable Commodity

Cold Storage......................................................................................................... 2-23

39 Eligible and Ineligible Structures for Honey ....................................................... 2-25

40 Asphalt Flooring for FSFL Structures ................................................................. 2-28

41 Renovating Structures and Preowned Facilities .................................................. 2-31

42 Eligible and Ineligible Storage and Handling Trucks.......................................... 2-34

43 Storage and Handling Equipment ........................................................................ 2-38

44 Types of Structures and Equipment Eligible and Ineligible for Milk.................. 2-45

45 Types of Structures for Wool Storage ................................................................. 2-47

46 Types of Structures Eligible for Hemp Storage................................................... 2-48

Part 3 Determining Storage Need and Applicable Waivers

47 Storage Need Self-Certification........................................................................... 3-1

48 Determining Storage Need for Eligible Commodities 

Storing 2 Years of Production.............................................................................. 3-2

49 Determining Storage Need for Hay, Biomass, and Seed Cotton ......................... 3-5

50 Determining Storage Need for Eligible Commodities

Storing One Year of Production .......................................................................... 3-8

51 Determining Storage Need for Honey ................................................................. 3-14

52 Determining Storage Need for Maple Sap and Milk ........................................... 3-16

53 Storage Need Waivers.......................................................................................... 3-19

54 Ineligible Space and Larger Capacity.................................................................. 3-20

55 Storage Need Requirements for Wool ................................................................. 3-21

56 Storage Need Requirements for Hemp ................................................................ 3-22

6-7-22 1-FSFL (Rev. 3) Amend. 5 TC Page 2
Table of Contents (Continued)

Page No.

Part 4 FSFL Policies and Application Processing

Section 1 FSFL-Making Policies

57 Partial and Final Disbursement Options.............................................................. 4-1

58 FSFL Fees............................................................................................................ 4-3

59 FSFL Microloan Provisions................................................................................. 4-5

60 FSFL Amount and Terms (Except Microloan).................................................... 4-8

61 Downpayment...................................................................................................... 4-10

62 Interest Rate ......................................................................................................... 4-12

63 FSFL Policy on Other Grants and Loans............................................................. 4-13

64 Lobbying Activity Provisions.............................................................................. 4-16

65-67 (Reserved)

Section 2 Items Needed for FSFL Application

68 FSFL Availability ................................................................................................ 4-27

69 Obtaining Forms and Filing CCC-185’s.............................................................. 4-28

70-73 (Reserved)

Section 3 Processing CCC-185’s, Checklists, and FSFL Folders

74 Completing CCC-195, CCC-195A, and CCC-195B ........................................... 4-47

75 Application Processing and Producer File Folder Maintenance.......................... 4-49

76-81 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 TC Page 3
Table of Contents (Continued)

Page No.

Part 5 Credit and Financial Worthiness

82 Credit History and Credit Reports....................................................................... 5-1

83 FSFL and Federal Delinquent Debt Applicants................................................... 5-7

84 Federal Judgment Liens....................................................................................... 5-9

85 Financial Planning ............................................................................................... 5-10

86 FSFL LRA Training Program.............................................................................. 5-14.5

87-95 (Reserved)

Part 6 Other Requirements

Section 1 Insurance

96 Multi-Peril Crop Insurance, NAP Requirement, or Dairy Insurance Coverage .. 6-1

97 All-Peril Structural Insurance .............................................................................. 6-3

98 Automobile Insurance.......................................................................................... 6-4

99 Flood Insurance.................................................................................................... 6-5

100-108 (Reserved)

Section 2 Environmental Review

109 Overview.............................................................................................................. 6-21

110 Evaluating Potential Environmental Effects........................................................ 6-22.5

111 Other Actions....................................................................................................... 6-24

112 Local Land Use and State and County Building Code Requirements................. 6-25

113-119 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 TC Page 4
Table of Contents (Continued)

Page No.

Part 7 Securing FSFL’s

120 Security for FSFL’s.............................................................................................. 7-1

121 Additional Security Requirements....................................................................... 7-2

122 Valuation of Security ........................................................................................... 7-8

123-139 (Reserved)

Part 8 Liens

140 State Supplement Explaining State Legal Requirements..................................... 8-1

141 Completing CCC-10’s ......................................................................................... 8-1

142 Chattel Lien Instruments...................................................................................... 8-3

143 Real Estate Lien Instruments ............................................................................... 8-6

144 Lien Searches....................................................................................................... 8-7

145-152 (Reserved)

Part 9 FSFL Decision

153 Items To Be Reviewed for FSFL Approval ......................................................... 9-1

154 FSFL Approval .................................................................................................... 9-4

155 FSFL Disapproval................................................................................................ 9-6

156 Conditions of FSFL Approval.............................................................................. 9-7

157 Insurance Waivers................................................................................................ 9-9

158 Approval Extensions ........................................................................................... 9-13

159-169 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 TC Page 5
Table of Contents (Continued)

Page No.

Part 10 Final Review of Documents

170 Disbursements...................................................................................................... 10-1

171 Inspection............................................................................................................. 10-5

172 Final Review of Cost Documents........................................................................ 10-7

173 CCC-191 .............................................................................................................. 10-9

174 CCC-197 .............................................................................................................. 10-12

175 Disbursement Calculator...................................................................................... 10-13

176 Determining Final FSFL Amount and Making Changes to FSFL Amount......... 10-15

177-184 (Reserved)

Part 11 Closing FSFL’s

Section 1 Finalizing FSFL’s

185 Required Final Actions........................................................................................ 11-1

186 Processing Check Requests.................................................................................. 11-3

187 Closing FSFL’s Secured by Real Estate .............................................................. 11-6

188-194 (Reserved)

Section 2 Disbursing FSFL’s

195 Preparing CCC-186.............................................................................................. 11-39

196 CCC-297 .............................................................................................................. 11-41

197 Storing Original Security Documents.................................................................. 11-45

198 Overdisbursements and Underdisbursements...................................................... 11-45

199 Correcting Real Estate Lien Instruments ............................................................. 11-47

200-208 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 TC Page 6
Table of Contents (Continued)

Page No.

Part 12 Basic Servicing Policies

Section 1 Routine Servicing

209 Producer Reminder Notification.......................................................................... 12-1

210 CCC-195 Servicing.............................................................................................. 12-3

211 Collecting Installments........................................................................................ 12-5

212 FSFL Balances..................................................................................................... 12-8

213 Real Estate Taxes................................................................................................. 12-9

214 Monitoring Insurance Requirements.................................................................... 12-10

215 Inspections........................................................................................................... 12-12

216 Maintaining UCC Lien ........................................................................................ 12-14

217 FSFL Structures, Equipment and Trucks Used for Purposes

Other Than Originally Intended........................................................................... 12-15

218 FSFL’s Paid in Full and Releasing Security........................................................ 12-17

219 Discharging CCC-297’s....................................................................................... 12-20

220-230 (Reserved)

Section 2 Other Servicing

231 Changes to a Farming Operation ......................................................................... 12-41

232 Relocating FSFL Collateral ................................................................................. 12-42

233 Repairing or Replacing FSFL Collateral ............................................................. 12-43

234 Assumptions......................................................................................................... 12-46

235 UCC-1 Partial Releases Before FSFL Is Paid in Full.......................................... 12-53

236 Partial Release of Real Estate ............................................................................. 12-54

237 Real Estate Lien Subordination ........................................................................... 12-56

238 Deceased Borrowers ............................................................................................ 12-58

239-241 (Reserved)

242 Disbursements for Unpaid Real Estate Taxes...................................................... 12-81

243 Applicability of the Service Members Civil Relief Act....................................... 12-82

244 Divorce Policy ..................................................................................................... 12-85

245 Conveyance by Borrower to CCC ....................................................................... 12-86

246 CCC-400 .............................................................................................................. 12-86

247 Financial Hardship Annual Installment Deferral................................................. 12-89

248-261 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 TC Page 7
Table of Contents (Continued)

Page No.

Part 13 Delinquent Servicing

262 Delinquent FSFL’s............................................................................................... 13-1

263 Calling FSFL’s..................................................................................................... 13-6

264 Liquidation Actions ............................................................................................. 13-10

265 Reinstatements..................................................................................................... 13-13

266-270 (Reserved)

271 Sale of Collateral.................................................................................................. 13-31

272 Liquidating FSFL’s Secured With Portable Collateral........................................ 13-32

273 Liquidating FSFL’s Not Secured by Real Estate With Nonmovable or

Nonsaleable Collateral......................................................................................... 13-40

274 Liquidating FSFL’s Secured With Real Estate Liens.......................................... 13-41

275-290 (Reserved)

Part 14 Bankruptcy

291 Bankruptcy Actions ............................................................................................. 14-1

292-300 (Reserved)

Part 15 Fees

301 Program-Related Codes....................................................................................... 15-1

302 Issuing Payments for Lien Searches and Recording Fees ................................... 15-2

303 Reimbursable Fees............................................................................................... 15-3

12-21-17 1-FSFL (Rev. 3) Amend. 1 TC Page 8
Table of Contents (Continued)

Exhibits

1 Reports, Forms, Abbreviations, and Redelegations of Authority

2 Definitions of Terms Used in This Handbook

3-5 (Reserved)

6 CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and 

CCC-193-D, Farm Storage Facility Loan Deed of Trust for (State of ____)

7 Approval Notification Letter

8 Adverse Determination Notification Letter

9 Adverse Determination Notification Letter Based on Environmental Review

10 Example of FSA-850 for Storage and Handling Truck FSFL Request

11-19 (Reserved)

20 Worksheet for Determining Hay and Biomass Storage Capacity in a Structure

21 Worksheet for Determining Capacity of a Cold Storage Structure

22 Worksheet for Determining Capacity of a Honey Storage Structure

23 Example Worksheet for Determining Capacity of Milk Bulk Tank

24 FSFL Quick Guide

25-27 (Reserved)

28 CCC-185, Loan Application for Farm Storage Facility Loan Program

29 CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist

30 CCC-195A, Farm Storage Facility Loan (FSFL) Real Estate Security Checklist

31 CCC-195B, Farm Storage Facility Loan (FSFL) No Real Estate Security Checklist

32 Suggested FSFL Filing Guide for Eight Position Files

33-50 (Reserved)

51 Authorized Methods for Determining the Value of FSFL Real Estate Security

52 Instructions for Requesting and Paying for FSFL Real Estate Appraisals

53 CCC-10, Representations for Commodity Credit Corporation or Farm Service Agency 

Loans and Authorization to File a Financing Statement and Related Documents

54, 55 (Reserved)

56 CCC-190, Farm Storage Facility Loan Program Lien Waiver

57 CCC-194, Farm Storage Facility Loan Subordination Agreement

58 CCC-185-D, Determination for Farm Storage Facility Loan Program

59-63 (Reserved)

64 CCC-197, Final Farm Storage Facility Loan (FSFL) Program Cost Certification

65, 66 (Reserved)

67 CCC-186, Farm Storage Facility Loan Program Promissory Note and Security 

Agreement

68 CCC-297, Severance Agreement

69 Letter of Intent or Guarantee

70 Example of Annual Reminder and Notification Letter

71 CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist

72 Example of First Demand Letter for Installment Payment

73-80 (Reserved)

81 Deceased Borrower – Secured by FSFL Fixture Only Letter

82 Deceased Borrower – Loan Secured by FSFL Fixture and Real Estate Mortgage or Deed 

of Trust Letter

83 Example of FSFL Annual Installment Deferral Adverse Determination Letter

6-7-22 1-FSFL (Rev. 3) Amend. 5 TC Page 9
.
Par. 1

Part 1 Basic Provisions

Section 1 General Provisions

1 Overview

A Purpose

[7 CFR 1436.1] This handbook provides the terms and conditions under which CCC may 

provide low cost financing for producers to store, handle and/or transport eligible 

commodities. 

This handbook also provides policies and procedures to administer the FSFL program for the 

following:

• acquiring, constructing, installing and upgrading new or used, portable or permanently 

affixed, on-farm storage and handling facilities

• acquiring new or used, storage and handling trucks

• acquiring new or used, portable or permanently affixed storage and handling equipment.

B Sources of Authority

Authorities for the requirements in this handbook are as follows:

• 7 CFR Part 1436

• CCC Charter Act, 15 U.S.C. 714 et seq.

• Food, Conservation, and Energy Act of 2008, 7 U.S.C. 7971 and 8789.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-1
Par. 1

1 Overview (Continued)

C Related FSA Handbooks

The following FSA handbooks concern FSFL.

IF the area of concern is about... THEN see...

acreage reporting 2-CP.

actively engaged determinations 4-PL or 5-PL.

appeals 1-APP.

approved abbreviations, signatures, and authorizations 1-CM.

audits and investigations 9-AO.

automation 2-FSFL.

delegations of authority 16-AO.

disbursing, lien search, and UCC-1 recording fees 1-FI.

document retention period 32-AS.

*--environmental quality program 1-EQ.

environmental risk management 2-EQ.--*

establishing claims 58-FI.

interest rates 50-FI.

IRS reporting 62-FI.

MAL yield 8-LP.

misaction and misinformation 7-CP.

payments and deposits 64-FI.

prompt payment 61-FI.

safety guidelines 5-LP.

SSFL’s 12-SU.

web-based subsidiary files 3-PL (Rev. 2).

D State Supplements

SED’s are authorized to issue State supplements to this handbook.

State supplements may:

• not be issued to simply state verbatim, policies already established in this handbook

• be issued:

• when this handbook does not provide complete guidance

• to provide additional guidance for employees with limited experience

• when State law requirements are not specifically addressed in this handbook

• when STC have authority to be more restrictive or waive provisions.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-2
Par. 2

2 FSFL Publicity Requirements

A State Office Action

State Offices are encouraged to publicize the availability of FSFL’s by:

• providing press releases and fact sheets to regional news media within the State

• informing regional farm storage facility distributors about basic FSFL provisions

• informing regional banks and other farm lending institutions about basic FSFL provisions

• providing basic FSFL provisions on the State Internet web site, if available.

B County Office Action

County Offices shall publicize, at least twice each calendar year, preferably well in advance 

of the storage season for applicable crops, the availability of FSFL by:

• providing basic FSFL provisions in:

• periodic newsletters

• press releases

• radio announcements

• the County Office Internet web site, if available

• informing local farm storage facility distributors about the availability of FSFL’s

• informing local banks and other farm lending institutions about the availability of 

FSFL’s.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-3
Par. 3

3 Internet Web Sites

A PSD Web Site

PSD shall provide FSFL fact sheets on PSD’s web site at

http://www.fsa.usda.gov/programs-and-services/price-support/facility-loans/farm-storage/index.

B Forms Web Sites

Forms are available from the following web sites:

• FFAS Employee Forms/Publications Online Website at 

https://intranet.fsa.usda.gov/dam/ffasforms/forms.html

• USDA Service Center Agencies eForms web site at 

https://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home.

C FSFL Interest Rate Web Site

FSFL interest rates for the current month are available on PSD’s web site at 

https://www.fsa.usda.gov/programs-and-services/price-support/facility-loans/farm-storage/index.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-4
Par. 4

4 FSFL Information

A Administering the FSFL Program

[7 CFR 1436.2] The FSFL Program will be:

• administered under the general supervision of DAFP

• carried out in the field by STC’s, COC’s, and FSA employees.

Farm program staff administer numerous program areas. FLP staff is involved in the FSFL 

program by assisting, at a minimum, with the financial review. SED may establish priorities 

for farm program and FLP staff for FSFL activities.

B Restrictions

STC’s and COC’s, and representatives and employees thereof, do not have the authority to 

modify or waive any of the provisions of this handbook unless authority is provided by 

DAFP.

C STC Actions

STC will:

• take any action required by this handbook that has not been taken by COC

• correct, or require COC to correct, an action taken by COC that is not according to this 

handbook

• require COC to withhold taking any action that is not according to this handbook

• require all FSFL checklists to be completed for FSFL making and FSFL servicing

●*--require completion of the environmental review by trained FSA staff prior to initiation of 

action by an applicant to begin a project and/or approval of the request.--*

STC may:

• approve CCC-185D’s up to the maximum approval amount

• establish additional limits for COC approval on a Statewide basis and not on a 

case-by-case basis

• establish maximum per bu. or per unit of measure limits for net cost.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-5
Par. 4

4 FSFL Information (Continued)

D Determinations

No provision or delegation to STC or COC shall preclude the CCC Executive Vice President, 

or a designee, or the FSA Administrator, or a designee, from:

• determining any question arising under FSFL

• reversing or modifying any determination made by STC or COC.

5 Facility, Drying and Handling Equipment and Storage and Handling Trucks Purpose and 

Useful Life

A Facility Purpose

The intent of the FSFL Program is to provide on-farm storage to producers to store and 

handle eligible facility loan commodities they produce. FSFL collateral must be used for the 

purpose for which the FSFL storage, equipment and storage and handling truck was acquired, 

*--constructed or installed for the entire FSFL term, unless prior approval was authorized to 

temporarily use the FSFL components for other agricultural-related items until the next 

harvest season.--*

FSFL must not be approved to provide financing for purchased commodities or commercial 

storage facilities.

B Facility Useful Life

To ensure the FSFL will be adequately secured throughout the FSFL term, CCC has 

determined the useful life of the eligible collateral must be at least the term of the loan.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1-6
Par. 6

6 FSFL Signature Authority Documentation Requirements

A FSFL Signature Authority for Individuals

FSFL shall follow FSA signature authority requirements for individuals according to 1-CM.

B Entity Signature Authority for FSFL’s

The signature authority for all forms and documents for FSFL’s for corporations, limited 

partnerships, LLC’s, and other similar entities is a copy of any of the following applicable 

documents:

• the corporate charter, bylaws, articles of organization, operating agreement, or 

partnership papers executed according to State law, that designates officers, members, or 

managers as authorized signatories

• resolution by the corporation’s board of directors signed by the corporation’s secretary, 

or an officer, other than the signatory being extended signature authority

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-7
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

B Entity Signature Authority for FSFL’s (Continued)

• corporate minutes signed by the corporation’s secretary, or an officer, other than the 

signatory being extended signature authority.

Notes: A copy of the required documentation must be obtained and kept on file in the 

County Office.

The entire document presented does not have to be maintained. However, all 

applicable pages that identify the entity, pertinent authority, and any limitations, 

etc., must be maintained.

If the intent of the resolution is to extend signature authority to all officers of a 

corporation, then all officers must sign the resolution.

Exception: For a 1-person corporation, that person is authorized to sign for 

the corporation by default if documentation, such as a corporate 

charter, is on file in the County Office that does both of the 

following:

• identifies the “1 person”

• validates that 100 percent of the corporation’s shares are held 

by that “1 person”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-8
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

B Entity Signature Authority for FSFL’s (Continued)

It is the respective entity’s responsibility to:

• inform County Offices of all changes in signature authority

• ensure that current documentation is provided accordingly with respect to FSFL 

requirements.

The identification or list of officers and/or shareholders of a corporation does not, by itself, 

provide sufficient evidence of who has authority to act on behalf of the corporation.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-9
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

B Entity Signature Authority for FSFL’s (Continued)

An agent may:

• redelegate the authority to sign FSFL forms and documents for a corporation, limited 

partnership, LLC, or other similar entity

• grant this authority according to the following table.

IF the entity 

documents... THEN the...

allow for 

redelegation of 

signature 

authority

person authorized to sign for the entity according to subparagraph A may 

redelegate their authority to an agent on FSA-211.

Important: The person authorized to sign for the entity according to 

this subparagraph shall not redelegate this authority, if the 

entity documents do not allow for redelegation of 

signature authority.

Example 1: The XYZ Corporation charter designates Mary Brown as 

the corporate officer with signature authority for the 

corporation. The corporate charter provides that the 

authority to sign for XYZ Corporation may be 

redelegated. Mary Brown may redelegate her signature 

authority for XYZ Corporation to an agent by completing 

FSA-211.

Example 2: The ABC Corporation charter designates Mike Jones as 

the corporate officer with signature authority for the 

corporation. The corporate charter does not indicate that 

the authority to sign for ABC Corporation may be 

redelegated. Mike Jones cannot redelegate his signature 

authority for ABC Corporation.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-10
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

B Entity Signature Authority for FSFL’s (Continued)

IF the entity 

documents... THEN the...

do not allow for 

redelegation of 

signature 

authority

following may be used to authorize an agent to sign for the entity for:

• corporations, either of the following:

• FSA-211 signed by all officers

• resolution of the board of directors, signed by an officer of the 

corporation, providing name of agent authorized to sign for the 

corporation

• limited partnerships and other similar entities, FSA-211 signed by all 

members of the entity

• LLC’s, FSA-211 signed by all members or authorized managers.

Notes: Certain properly executed and completed affidavits, on file in a 

County Office should be used as evidence of signature authority. 

These affidavits should be honored as evidence of signature 

authority by State and County Offices.

County Offices shall review CCC-902E, Part C to ensure that 

members and their respective shares have not changed, if 

FSA-211 or an affidavit recently executed is used as evidence of 

signature authority.

Example: ABC Corporation charter designates Mike Jones as the 

corporate officer with signature authority for the corporation. 

The corporate charter does not indicate that the authority to 

sign for ABC Corporation may be redelegated. Mike Jones 

cannot redelegate his signature to sign for ABC Corporation. 

However, an agent may be authorized to sign for ABC 

Corporation, if all officers of ABC Corporation sign FSA-211.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-11
Par. 6 

6 FSFL Signature Authority Documentation Requirements (Continued)

C Joint Venture Signature Authority for All FSFL’s

Members of a joint venture may appoint an individual on FSA-211 to request FSFL on 

CCC-185. All members of the joint venture must sign FSA-211. Members of the joint 

venture are appointing an attorney-in-fact to act on behalf of the joint venture. 

Note: If an attorney-in-fact has not been appointed on FSA-211 to act on behalf of the joint 

venture, all members must sign CCC-185. 

All members of a joint venture, including spouses if required by State law, are required to 

sign the following FSFL security documents: 

• CCC-186 

• CCC-186-1 

• CCC-193 (Exhibit 6) 

• CCC-193-D (Exhibit 6) 

• CCC-298 

• CCC-400 

• all other real estate lien forms approved for use by a regional OGC

• UCC-1, if signatures are required. 

Note: FSA-211 for the joint venture does not authorize the appointed person to sign for 

individual members on FSFL security documents. 

County Offices shall review CCC-902E, Part C or CCC-901, Part A for joint ventures for 

member names to ensure that all members have signed FSA-211 and all applicable FSFL 

security documents. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-12 
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

C Joint Venture Signature Authority for All FSFL’s (Continued)

Determine acceptable evidence of signature authority for a joint venture as an entity 

according to the following table.

IF the individual 

signing for the joint 

venture is...

THEN acceptable evidence of authority is a valid FSA-211 

signed by...

a member of the joint 

venture

all members of the joint venture for CCC-185 only.

Note: Certain properly executed and completed affidavits, on file 

in a County Office should be used as evidence of signature 

authority. These affidavits should be honored as evidence 

of signature authority by State and County Offices, if the 

members and their respective shares are unchanged.

an agent all members of the joint venture.

The following are examples of FSFL signature requirements for joint ventures.

Example 1: ABC Joint Venture has a permanent TIN and is comprised of Jane Black, 

Bob Green, and Mike Brown.

ABC Joint Venture is the owner and operator of a farm and submits CCC-185. 

FSA-211 is on file in the County Office authorizing Mike Brown to sign for 

ABC Joint Venture. For CCC-186 and all applicable security documents 

listed in this subparagraph, all 3 members, including spouses, if required by 

State law, will be required to sign. FSFL disbursement will be issued to 

ABC Joint Venture using their permanent TIN.

Example 2: DEF Joint Venture does not have a permanent TIN and is composed of 

Mike Smith and Tom Williams.

DEF Joint Venture is the operator of a farm and submits CCC-185. Because 

DEF Joint Venture does not have a permanent TIN, CCC-185 must be 

submitted in the names of the 2 members with Mike Smith designated as the 

contact borrower. Both members shall be listed as co-applicants on all FSFL 

documents. Both members, including spouses, if required by State law, will 

be required to sign CCC-186 and all applicable security documents listed in 

this subparagraph. FSFL disbursement will be issued under Mike Smith’s 

TIN as the contact borrower.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-13
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

D General Partnership Signature Authority for FSFL’s

For all FSFL’s issued to general partnerships, the partnership must provide the Articles of 

Partnership. If no Articles of Partnership are available, IRS documents, such as IRS-1065 

(Schedule K-1) showing members and their respective shares, may be used. A written 

statement identifying all members and shares of the partnership and signed by all members of 

the partnership may be used as acceptable documentation the first year the partnership is in 

effect, or if the membership of the partnership has changed and the partnership has not filed 

any IRS forms.

Notes: Certain properly executed and completed affidavits, on file in a County Office should 

be used as evidence of signature authority. These affidavits should be honored as 

evidence of signature authority by State and County Offices.

County Offices shall review CCC-902E, Part E to ensure that membership of the 

general partnership and their respective shares have not changed.

Any member of a general partnership may:

• sign for the general partnership

• bind all members unless the Articles of Partnership are more restrictive.

Note: FSA considers this policy acceptable because the majority of States have laws that 

provide for this; however, this is not the case for any other business enterprise.

A member of a general partnership may:

• execute FSA-211 to appoint an attorney-in-fact to act on behalf of the general partnership

• bind all members, unless the Articles of Partnership restrict member’s authority.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-14
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

E Conservatorship, Estate, Guardianship, or Trust Signature Authority for FSFL’s

For an individual to sign FSFL forms and documents as administrator, conservator, executor, 

guardian, receiver, or trustee, evidence of authority consisting of 1 of the following 

documents that was executed according to State law is required:

• court orders of appointment

• court-approved certificate or letter of administration

• trust agreement or last will and testament that established the trust

• similar document approved by the regional OGC.

These documents, except trust agreements and documents approved by the regional OGC, 

shall contain the following:

• signature of an officer of the issuing court

• certification by an officer of the issuing court that the evidence of authority is in full force 

and effect.

F Charitable and Tax-Exempt Organization Signatory Authority for FSFL’s

Either of the following documents will authorize an individual to sign on behalf of a 

charitable organization, church, fraternal, or society organization on all FSFL forms and 

documents:

• letter of authorization signed by either of the following:

• legal head of the church or organization

• head of the local church body, if applicable

• FSA-211 on which individuals authorized in this subparagraph may redelegate authority 

to an agent.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-15
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

G Indian Tribe Signatory Authority for FSFL’s

On all FSFL forms and documents for an Indian tribe, a copy of tribal bylaws designating 

members authorized to sign and bind other members of the venture will be required to 

authorize a member to sign and obligate other members of the Indian tribal venture.

Note: Certain properly executed and completed affidavits, on file in a County Office before 

July 20, 2004, have been used as evidence of signature authority. These affidavits 

shall continue to be honored by State and County Offices. In addition, all affidavits 

filed after July 18, 2001, must be witnessed by an FSA employee or notarized to be 

considered acceptable.

H Spouse and Attorney-in-Fact Signatory Authority for Entities and Joint Operations

For any of the following entities and joint operations: charitable/tax exempt organizations, 

conservatorships, corporations, estates, general partnerships, guardianships, Indian tribes, 

joint ventures, limited partnerships, LLC’s, sole proprietorships, or trusts:

• spouses shall not sign on behalf of each other as an authorized signatory

• individuals who are appointed an attorney-in-fact for another individual shall not sign for 

that individual as an authorized signatory.

Example: Joe Blue is a member of B Inc. The charter for B Inc. authorizes Joe Blue to sign 

for the corporation. Joe Blue’s spouse shall not sign for Joe Blue as the 

authorized signatory for B Inc.

Joe Blue appointed Mary Smith as his personal attorney-in-fact on FSA-211. 

Mary Smith cannot sign for Joe Blue as the authorized signature for B Inc.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-16
Par. 6

6 FSFL Signature Authority Documentation Requirements (Continued)

H Spouse and Attorney-in-Fact Signatory Authority for Entities and Joint Operations 

(Continued)

Spouses may sign on behalf of each other’s individual interest in a corporation, joint 

venture, limited partnership, LLC, or other similar entity, unless a written notification 

denying a spouse this authority is provided to the County Office. Individuals who are 

appointed as an attorney-in-fact for another individual may sign for that individual’s interest 

in a corporation, joint venture, limited partnership, LLC, or other similar entity.

Examples: Jane Brown is a member of JBB Inc. The corporate charter for JBB Inc. 

requires all members to sign documents for the corporation. Jane Brown’s 

spouse may sign for Jane Brown’s individual member interest in the 

corporation. Jane Brown appointed Mike Black as her personal 

attorney-in-fact on FSA-211. Mike Black may sign for Jane Brown’s 

individual member interest in the corporation.

Jack Green is a member of JJJ Joint Venture. All members of JJJ Joint 

Venture signed FSA-211 appointing Jack Green attorney-in-fact for the joint 

venture. Jack Green’s spouse shall not sign for Jack Green as the authorized 

signatory for JJJ Joint Venture. Jack Green appointed Bill Brown as his 

personal attorney-in-fact on FSA-211. Bill Brown cannot sign for Jack Green 

as the authorized signatory for JJJ Joint Venture.

Jill White is a member of EE Joint Venture. No member of EE Joint Venture 

is authorized to sign for the joint venture and bind all members; therefore, all 

members must sign documents for the joint venture. Jill White’s spouse may 

sign for Jill White’s individual interest in the joint venture. Jill White 

appointed Mike Jones as her personal attorney-in-fact on FSA-211. 

Mike Jones may sign for Jill White’s individual interest in the joint venture.

I Sole Proprietorship Signatory Authority

A sole proprietorship is a business operation conducted by an individual under a name other 

than the name of the individual. This individual may sign all FSFL forms and documents for 

the business operation, if a signed CCC-902E, Part C lists only this 1 individual as a member 

of the proprietorship.

7-9 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-17

(through 1-30)
.
Par. 10 

Section 2 Approval Authorities 

10 FSFL Approval Authority 

A Delegations of Authority for All Forms Except CCC-185D 

The authority to approve all FSFL forms, except CCC-185D, and documents prepared 

according to this handbook may be delegated in writing by:

• COC to CED, except CCC-185D’s and applications in which CED has a monetary 

interest

• CED to Federal and non-Federal County Office employees, except CCC-185D’s, 

CCC-186’s, and applications in which the person approving has a monetary interest 

• STC to FLM, SFLO, FLO, or FSA employee with loan approval authority, except

CCC-185D’s and applications in which the person approving has a monetary interest 

• FLM to Federal and non-Federal County Office employees, except CCC-185D’s, 

CCC-186’s, and applications in which the person approving has a monetary interest. 

Notes: STC may authorize SED to designate offices where FLP employees will 

administer the FSFL program.

 *--COC and STC are not authorized to sign required environmental review 

documents for a complete application, including but not limited to FSA-850, 

FSA-851, FSA-858, or environmental assessments. See 1-EQ, subparagraph 31 B 

for environmental review signature requirements.--* 

See subparagraph 195 B for guidance on who has authority to sign CCC-186 as approving 

official for CCC.

B Authority to Approve FSFL’s and Sign CCC-185D 

CCC-185D approval must be obtained before any action is taken by the applicant to install 

the facility or drying and/or handling equipment. See paragraph 11. 

COC or STC only is the approval authority for CCC-185D. STC may redelegate 

CCC-185D approval authority to: 

• CED or FSA employee with loan approval authority for FSFL’s with an aggregate 

outstanding balance of $25,000 or less 

• SED or DAFO-appointed acting SED only.

An individual acting for CED, FSA employee with loan approval authority, DD or SED does 

not have CCC-185D approval authority. 

 *--Approval of CCC-185D is authorized only after completion of the appropriate level of 

environmental review as provided by 1-EQ, subparagraph 31 B.--* 

See subparagraph C for information on FSFL’s for employees and their relatives.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-31 
Par. 10 

10 FSFL Approval Authority (Continued)

B Authority to Approve FSFL’s and Sign CCC-185D (Continued)

To protect CCC’s financial interests, approval authority for FSFL’s is as follows. 

IF the total aggregate outstanding 

FSFL balance 1/ 2/ amount is...

THEN the approval 

authority is... Reference

$25,000 or less CED and/or FSA employee 

with loan approval 

authority, if designated` 

approval authority by STC

Subparagraph D

$100,000 or less COC. Subparagraph D.

$100,000.01 to $250,000 COC approval after DD 

review. 3/

Subparagraph E.

$250,000.01 or more STC. Subparagraph F.

Note: When the aggregate outstanding FSFL balance is equal to or exceeds $250,000.01, 

the approval authority is the STC. 

1/ For FSFL’s with partial and final disbursements, the two FSFL amounts are combined. 

2/ Aggregate outstanding FSFL balance includes the new request and any principal balance 

on existing FSFL’s. For example, producer has an outstanding FSFL for $90,000 and 

requests a new FSFL for $30,000. DD review of the $30,000 FSFL request is required 

before COC approval. 

3/ DD’s must review all CCC-185’s with a total aggregate outstanding FSFL principal 

amount between $100,000.01 and $250,000. FSFL approval date will be the date COC 

approves FSFL after DD review.

Exception: STC is the approval authority for all renewable biomass CCC-185D’s.

Notes: All increases to the original approved FSFL amounts must be referred to the 

original approval authority or a higher authority, if required, for the total 

aggregate outstanding FSFL balance amount. See paragraph 176. 

DD concurrence is necessary for all FSFL’s with asphalt flooring, regardless of 

the FSFL balance. 

The correct review process will vary depending on FSFL approval authority required and 

whether the applicant has taken delivery or begun construction. See subparagraphs D 

 *--through F and paragraph 11 for additional guidance. However, it is not possible to complete 

the requisite environmental reviews for approval of FSFL requests after the fact of initiating 

construction or site preparation, as provided by 1-EQ, subparagraphs 2 D and 5 A.--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-32 
Par. 10 

10 FSFL Approval Authority (Continued)

C Authority to Approve FSFL’s for Employees and Relatives

Use the following table for exceptions. 

IF the FSFL applicant is...

THEN the approval authority for CCC-185D

shall be...

a State, Federal, or non-Federal County 

Office employee, including CED’s

STC, STC-delegated SED, or STC-designated DD

Note: If the aggregate FSFL amount is over 

$250,000, only STC or STC-delegated 

SED is authorized to approve CCC-185D. 

COC member

a relative to County Office employees 

or COC members

Note: See Exhibit 2 for the definition 

of relative.

DD STC or STC-delegated SED.

STC member

SED STC.

a relative to DD or STC member

Note: See Exhibit 2 for definition of 

relative.

STC or STC-delegated SED.

a relative to SED

Note: See Exhibit 2 for definition of 

relative.

STC.

Notes: Questionable cases shall be referred to the next higher authority for determination. 

Potential conflict of interest cases shall be handled according to 3-PM and 22-PM.

STC may delegate to a DAFO-appointed acting SED any authorities that may be 

delegated to SED.

Employees are not allowed to work on their own application processing or loan servicing, or 

the application processing or loan servicing of their relative. The employee will only 

complete forms where he/she must sign and date as the applicant. Another employee with 

authority must complete all other required forms. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-33 
Par. 10 

10 FSFL Approval Authority (Continued)

D FSFL’s Within CED, FSA Employee With Loan Approval Authority and COC 

Approval Authority

For FSFL’s with the total aggregate outstanding FSFL balance of $25,000 or less, STC’s are 

authorized to designate loan approval to CED or an FSA employee with loan approval 

authority. Employees shall approve or disapprove FSFL by signing CCC-185D, only if STC 

has granted the employee approval authority. The designation must be documented in the 

STC regular meeting minutes. 

Note: CED is not required to have loan approval authority for this delegation. 

For FSFL’s with the total aggregate outstanding FSFL balance of $100,000 or less, COC 

shall approve or disapprove FSFL by signing CCC-185D. 

See Part 9 for detailed information about FSFL decision and paragraph 13 for notification to 

applicant. 

E FSFL’s Within COC Approval Authority After DD or State Office Designee Review

DD or State Office designee with loan approval authority shall, before approval by COC, 

review CCC-185 and CCC-185D where the total aggregate outstanding FSFL balance is 

equal to $100,000.01 to $250,000. If the review: 

• reveals discrepancies or errors, the file shall be returned to the County Office for 

correction

Note: After corrections have been made, DD or State Office designee shall again review 

the file.

• is acceptable, a statement similar to the following shall be entered in CCC-185D, item 5 

or documented in the producer’s FSFL folder: 

“From review of the completed documents and review of the financial documents, 

I concur with the FLM/FLO/SFLO’s recommendation, concurring with the financial 

ability of the applicant and I also recommend approval or disapproval of FSFL to 

COC.”

Note: DD or State Office designee shall sign and date the statement.

After the review is complete and all discrepancies are corrected, COC shall approve or 

disapprove FSFL by signing CCC-185D. 

FSFL approval date will be the date COC approves FSFL after DD review. 

See Part 9 for detailed information about FSFL decision and paragraph 13 for notification to 

applicant. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-34 
Par. 10 

10 FSFL Approval Authority (Continued)

F FSFL’s Within STC Approval Authority

STC or designated SED shall approve or disapprove the following: 

• CCC-185D’s with a total aggregate outstanding FSFL balance of $250,000.01 or greater 

• biomass CCC-185D’s

• CCC-185D’s where STC has set other limitations for COC approval

• FSFL’s with asphalt flooring. 

For FSFL’s where the producer’s total aggregate FSFL balance is over $250,000, DD or 

State Office designee with loan approval authority, before STC approval, must review the 

most recent FSFL documents to ensure that the producer is financially able to meet all FSFL 

obligations. 

If STC or designated SED disapproves the CCC-185D, the reasons must be explained in a 

memorandum to COC. 

See Part 9 for detailed information about FSFL decision and paragraph 13 for notification to 

applicant. 

STC is the approval authority for all renewable biomass FSFL’s. The following information 

must be immediately submitted by the State Office after STC approval to Toni Williams by 

e-mail to toni.williams@wdc.usda.gov: 

• resale collateral value for which the facility is approved

• type of storage approved 

• capacity of the storage facility

• county, FY, and FSFL number 

• total FSFL amount approved. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-35 
Par. 10

10 FSFL Approval Authority (Continued)

G Confidentiality of Applicant’s Financial Information

For CCC to ensure confidentiality of an applicant’s financial information, STC’s and COC’s 

shall:

• not view financial information, such as balance sheets and cash flow statements, 

provided by applicants

• not discuss an applicant’s financial information with anyone outside of the State or 

County Office

• obtain the FBP, FSFL Credit Presentation that provides recommendation for approval 

about the applicant’s credit from an FSA employee with FLP loan approval authority

• use the recommendation to determine whether the:

• applicant’s credit history is satisfactory

• applicant has the ability to repay the debt resulting from FSFL.

Notes: The applicant’s financial information shall be kept in the applicant’s FSFL folder. 

After a complete review by an FSA employee with FLP loan approval authority and 

STC and/or COC approval, SED may mandate sealing any or all of an applicant’s 

financial information in an envelope to be kept in the applicant’s FSFL folder.

Applicants may submit a written request for a copy of their credit report after it has 

been obtained from Data Facts, Inc.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-36
Par. 11 

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval 

 *--A Environmental Review Program and Environmental Risk Management 

All FSA actions including but not limited to FSFL requests require completion of an 

environmental review for compliance with NEPA. 

NEPA requires that: 

 Federal Agencies must consider all potential environmental impacts of their proposed 

actions by incorporating an analysis of impacts into their decision making processes and 

considering reasonable alternatives to those activities before implementing activities that 

have the potential to significantly impact the human environment 

 all environmental processes must be fully completed before an action is begun or can be 

approved; therefore, actions may not be approved contingent to completion of any 

portion of the environmental review process 

 agencies consult with and obtain comments from Federal Agencies that manage or have 

expertise about resources that are potentially affected (40 CFR 1502.25). 

FSA’s NEPA implementing regulations are found in 7 CFR Part 799. The process for 

implementing these regulations are described in 1-EQ and 1-FSFL, paragraph 110. 

Note: FSA-850’s completed for the environmental review for portable storage, equipment 

and/or storage and handling truck may not require a site visit provided there are no 

extraordinary circumstances. 

All FSFL’s secured by real estate will be evaluated for environmental risks by FSA staff by 

completing FSA-851, according to 2-EQ. This assessment is necessary to assess the 

suitability and value of proposed security and document lender liability due diligence. 

The environmental review consisting of completion of FSA-850 or an EA as appropriate 

must be satisfactorily completed by trained FSA staff to establish a FONSI with no 

extraordinary circumstances, before action is taken to initiate construction or approve

CCC-185D.

If FSA-850 or EA cannot be satisfactorily completed, CCC-185D will not be approved. 

There are no provisions for programmatic waiver requests, administrative exceptions, or 

misaction/misinformation regarding NEPA compliance. 

FSA-851 must be completed and the findings evaluated before perfecting a lien on real estate 

security as provided by 2-EQ. If there are unresolved issues associated with the proposed 

property, then alternative real estate may be provided.--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-37 
Par. 11

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval (Continued)

*--B Actions That Impede Completion of an Environmental Review

The following producer actions must not occur at the FSFL site location or staging location 

before the environmental review processes have been fully concluded as provided by 1-EQ, 

subparagraphs 2 D and 5 A. The CCC-185D can only be approved after successful 

completion of the environmental review. Premature action includes but is not limited to:

• accepted delivery of equipment and/or materials for projects involving ground 

disturbance or construction

• clearing or removal of vegetation

• site grading level, preparation, or foundation construction

• removal of or alterations to any structures that are 50-years-old or older or located within 

a historic district.

C Environmental Review Completed Before CCC-185D Approval

The environmental review is considered successfully completed when the required FSA-850 

or EA processes have been concluded including consultations and public notices as 

appropriate and signature requirements are met to establish an environmental determination 

has been made, according to 1-EQ,

Note: FSA-850 and EA preparer and official signature requirements can be found at 1-EQ, 

subparagraph 31 B.

Example: The producer requested FSFL to install a grain bin on October 25, 2018. 

FSA-850 was prepared and an environmental evaluation site visit was completed 

on October 27, 2018. Consultations with SHPO and FWS were completed and 

responses received November 20, 2018, found there were no potential 

environmental impacts. The FSA-850 preparer, who is CED, signed and dated 

FSA-850 on November 21, 2018 granting FSA-850 approval. COC determined 

the producer met all FSFL eligibility requirements and CCC-185D was approved 

on November 27, 2018.--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-38
Par. 11

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval (Continued)

D Programmatic Waiver Request

*--Producers may request a programmatic waiver request, in writing, when actions unrelated to 

the environmental review for NEPA compliance were started before CCC-185D approval.--* 

All of the following must have been completed before the producer performed the actions:

●*--FSA-850 or EA as applicable, was successfully approved with no adverse impacts or 

unresolved extraordinary circumstances identified, according to 1-EQ

• FSA-851 was completed as provided by 2-EQ, paragraph 13 and Exhibit 5, any related 

issues have been resolved and suitable security has been provided--*

• CCC-185 was completed, signed, and dated by the producer and received in the County 

Office

• $100 application fee per producer was received and deposited in DLS according to 

2-FSFL.

The producer’s written waiver request must:

• include the reasons why the producer started the action before receiving FSFL approval

• be documented in COC or STC minutes, as applicable.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-38.5

(and 1-38.6)
.
Par. 11

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval (Continued)

D Programmatic Waiver Request (Continued)

The following provisions must be met before forwarding the case to the appropriate 

approving authority:

• all required documentation for financial analysis for all applicants and/or entities was

received

• a favorable financial analysis must be received from the FSA employee with loan 

approval authority

●*--FSA-850 or EA must be satisfactorily completed before any action was taken to initiate 

ground disturbance or construction activities at the project or staging area and --*

approval of the FSFL

• all applicant eligibility, equipment eligibility, and collateral security requirements,

*--including satisfactory completion of the FSA-851, if necessary, must be met.

Example: The producer requested FSFL in the amount of $99,000 to install a grain bin on

September 21, 2018. CCC-185 was properly completed and the $100 application

fee was collected. FSA-850 was drafted by the preparer and an environmental 

evaluation site visit was completed on September 22, 2018. Consultations were 

sent on September 22, 2018, to SHPO and FWS who both responded on 

October 12, 2018, that they had no concerns. FSA-850 was finalized with 

attachments of the consultation responses and signed by the preparer and reviewer 

on October 12, 2018. The FSA employee with loan approval authority 

recommended approval of the FSFL on October 13, 2018. The producer started 

site preparation on October 14, 2018. COC determined the producer met all FSA 

eligibility requirements and CCC-185D was approved on October 29, 2018.--*

Based on policy in this subparagraph, FSFL can be approved by COC, as

applicable, according to subparagraph E.

Note: If deemed necessary by STC or the National Office, additional information may be 

requested, such as, but not limited to, site preparation documentation and/or invoices 

to assist with determining eligibility and environmental compliance.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-39
Par. 11

11 FSFL’s Where Any Delivery or Construction Has Begun Before Approval (Continued)

E Approval Authority for Producers Taking Actions Before CCC-185D Approval

*--All waiver requests for producers starting any actions after completion of the environmental 

review according to this paragraph must be reviewed, approved, or disapproved by the 

following table. The SEC is to be consulted regarding any issues or concerns regarding the 

NEPA environmental review or FSA-851 evaluation of real estate security.---*

IF the total aggregate outstanding FSFL 

balance amount is... THEN the approval authority is...

$100,000 or less COC.

$100,000.01 to $250,000 COC approval after DD review. 

$250,000.01 to $500,000 STC or STC can delegate approval authority to 

SED or DAFO-appointed acting SED only. 

The following provisions also are applicable:

• conditional approval for environmental compliance is not authorized

• interest rate of FSFL is based on CCC-185D approval date

• waiver provisions are not authorized for producers who requested FSFL after the FSFL 

project has been completed

• STC has authority to establish a more restrictive policy, statewide, if necessary.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-40
Par. 12 

12 Using Alternative Options for In-Person STC or COC Meetings 

A Conducting Meetings

When STC or COC meetings are conducted by conference call, e-mail, or polling process for 

CCC-185D approvals, the following actions are required: 

• record CCC-185D approval or disapproval in STC or COC meeting minutes, as 

applicable

• document in STC or COC meeting minutes, as applicable, the names of the committee 

members that were polled, dates of the poll, and the determinations. 

After CCC-185D is approved or disapproved by conference call, e-mail, or polling process, 

follow Part 9 for FSFL decision and paragraph 13 for notifying the applicant. 

B Signing CCC-185D When Alternative Option Is Used

If an alternative option is used to conduct STC and/or COC meeting:

• STC or COC chairperson, as applicable, must sign CCC-185D at the next opportunity 

• document the date and method of approval in CCC-185D, item 5. 

13 Notification to Applicant of Approval or Disapproval 

A Notifying Applicants 

The applicant must be notified by notification letter when CCC-185D: 

• approval has been entered and obligated in DLS 

• is disapproved. 

B Approval Notification Letter 

See Exhibit 7 for the Approval Notification Letter that is available electronically.

C Adverse Determination Notification Letter 

See Exhibit 8 for the Adverse Determination Notification Letter that is available 

electronically.

 *--D Adverse Determination Notification Letter Based on Environmental Review

See Exhibit 9 for the Adverse Determination Notification Letter Based on Environmental 

Review that is available electronically.--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-41 
Par. 14 

14 FSFL Approval Expiration 

A Approval Expiration 

FSFL approvals expire 6 months after the approval date, unless extended in writing.

An additional 6-month extension, for a total of 12 months from the original approval date, 

may be approved according to the following.

IF the total aggregate outstanding 

FSFL amount is... THEN approval authority is...

less than or equal to $250,000 COC after DD or State Office designee review.

greater than $250,000 STC or delegated authority to SED or 

DAFO-appointed acting SED only. 

Note: The delegation of authority must be 

recorded in STC minutes.

STC’s only are authorized to grant extensions of FSFL approvals beyond 12 months, not to 

exceed 18 months from the date of approval. 

B Requesting Extension of the Approval Expiration 

See paragraph 158 for detailed information on requesting extensions on the approval 

expiration date.

15-24 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1-42 

(through 1-56) 
Par. 25

Section 3 Relief and Other Actions

25 Waivers

A DAFP Waivers

*--DAFP may authorize STC’s and COC’s to waive or modify deadlines for other than NEPA 

compliance and other FSFL requirements in cases where lateness or failure to meet other--*

FSFL requirements does not adversely affect the FSFL operation.

STC’s and COC’s may prepare a request for waiver to the applicable FSFL requirement 

according to this paragraph.

When COR determines a corrective action is required because FSFL was improperly 

disbursed or serviced and the producer wants FSFL to remain outstanding, a DAFP waiver is 

required.

B County Office Action

To address special situations, County Offices shall:

• prepare a memorandum to STC containing the following:

• full details of the situation

• purpose of the request

• COC recommendations.

• provide copies of all applicable FSFL documents, including the following:

• CCC-185

• CCC-185-1

• CCC-185D

• CCC-186

• CCC-186-1

• COC and STC minutes

●*--FSA-850 or EA as appropriate with underlying supporting documentation for 

consultation with SEC

• FSA-851 when real estate security is involved--*

• servicing forms and information.

• forward the request to STC.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-57
Par. 25

25 Waivers (Continued)

C State Office Action

*--If STC concurs with COC request, State Offices must:

• consult with the SEC who in turn will consult the National Environmental Compliance 

Manager as necessary to resolve any issues regarding NEPA compliance--*

• prepare a memorandum to DAFP containing the following:

• full details of the situation

• purpose of the request

• STC and COC recommendations

• provide copies of all applicable FSFL documents listed in subparagraph B.

Note: The original file and FSFL documents shall not be sent.

The National Office may request, at any time and for any case, additional information after 

the DAFP waiver is received.

Documents may be e-mailed (encrypted) to Toni Williams at toni.williams@wdc.usda.gov, 

or to fsflpolicy@wdc.usda.gov.

D DAFP Action

DAFP shall:

• review

• approve or disapprove the request

• notify the applicable State Office.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-58
Par. 26 

26 Appeals, Misaction, and Misinformation 

A Adverse Determinations

Approving authorities making adverse determinations against FSFL applicants and borrowers 

shall:

• send the Adverse Determination Notification Letter (Exhibit 8) 

• provide mediation, reconsideration, and appeal rights according to 1-APP

• follow procedure in 1-APP to process and act on appeals.

Note: If the approval authority is STC, follow guidance in paragraph 155. STC will 

provide documentation to COC with the reasons for disapproval and authorize the 

COC to send the disapproval notification letter. 

B Misaction and Misinformation 

When there is misaction, misinformation, or a situation involving the finality rule, follow 

procedure in 7-CP.

Misaction and misinformation provisions do not apply to FSFL requests where the producer 

 *--started actions, according to paragraph 11, before CCC-185D approval or the issue is related 

to NEPA compliance. The FSFL request must be disapproved by the approval authority--*

and appeal rights provided according to 1-APP.

 For questionable situations, contact the National Office. 

27-31 (Reserved)

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1-59 
.
Par. 32 

Part 2 FSFL Provisions

32 Eligible Commodities, Structure and Storage Needs Table

A Helpful Table

This part provides detailed information for eligible commodities and structures as well as 

calculating storage needs. The following table identifies the maximum production storage 

capacity and applicable paragraphs for each commodity type. 

Commodity Type

Production 

Storage 

Capacity

Defining

Eligible 

Commodity

(paragraph)

Eligible

Structures 

(paragraph)

Storage 

Need 

Calculations

(paragraph)

Aquaculture 1 year 33 K 38 50

Butter, Cheese, Eggs, 

Yogurt

1 year 33 I 38 50

Floriculture 1 year 33 G 38 50

Grain, Oilseeds, Etc. 2 years 33 B 36 48

Hay 2 years 33 D 37 49

*--Hemp 1 year 33 N 46 56--*

Honey 1 year 33 F 39 51

Hops 1 year 33 L 50

Maple Sap 1 week 33 M 52A

Meat and Poultry 1 year 33 J 38 50

Milk 3 days 33 H 38 52B

Perishable Commodities, 

Nuts

1 year 33 C 38 50

Renewable Biomass 1 year 33 E 37 49

*--Seed Cotton 1 year 33 O 43 49

Wool 1 year 33 P 46 55--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-1 
Par. 33

33 Eligible FSFL Commodities

A Documentation Necessary to Add a Commodity

For any commodities not currently identified as eligible for FSFL’s, STC shall determine 

whether the requested new commodity is produced in that State using resources including, 

but not limited to, NAP availability and/or NASS data.

If the need has been determined by STC, the State Office shall prepare a written document to 

justify the addition of the new commodity and send it by email to Toni Williams at 

toni.williams@wdc.usda.gov.

The justification document should, at a minimum, provide the following

• general information about the commodity, including its use

• market for the requested commodity

• storage needs.

Note: State Offices must allow time for National Office approval of the requested 

commodity. In most cases, the Secretary’s office must make the final decision about

eligibility of a commodity.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-2
Par. 33

33 Eligible FSFL Commodities (Continued)

B Grain, Oilseed, Pulse and Other Commodities 

Eligible commodities authorized for FSFL’s include the following:

• grains, harvested as whole grain or other than whole grain include the following:

• barley

• corn

• grain sorghum

• oats

• quinoa

• wheat

●*--teff--*

• oilseeds include the following:

• canola

• crambe

• flaxseed

• mustard seed

• rapeseed

• safflower

• sesame seeds

• soybeans

• sunflower seeds

• other grains include the following:

• buckwheat

• millet

• speltz

• triticale

• rye

Note: Malted small grains are authorized.

• peanuts

• pulse crops include the following:

 chickpeas (large and small)

• dry beans

• dry peas

• lentils

• rice

• wild rice

 alfalfa, grass, and clover seed.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-3
Par. 33 

33 Eligible FSFL Commodities (Continued)

C Eligible Perishable Commodities

The following provides eligible perishable commodities eligible for cold storage FSFL’s.

Eligible Perishable Commodities

Almonds Chestnuts Lemons Potatoes

Apples Chicory/Radicchio Lettuce Potatoes, Sweet

Apricots Coconuts Limes Prunes

Aronia Berries Corn Macadamia Nuts Pumpkins

Artichokes Cranberries Mangos Radishes

Asparagus Cucumbers Mushrooms Raisins

Avocados Currants Nectarines Rhubarb

Bamboo Shoots Dates Okra Rutabaga

Bananas Eggplant Olives Saskatoon Berries

Beans Elderberries Onions Scallions

Beets Figs Oranges Shallots

Blueberries Garlic Papaya Squash

Broccoli Ginger Parsnip Strawberries

Brussel Sprouts *--Ginseng--* Peaches Tangelos

Cabbage Grapefruit Peas Tomatoes

Caneberries Grapes Pears Turnips

Cantaloupes Green Peanuts Pecans Walnuts

Carrots Greens Peppers Water Cress

Cashews Hazelnuts Pineapple Watermelon

Cauliflower Herbs Pistachios Yams

Celery Honeydew Plantain

Cherries Kiwifruit Plums

Kohlrabi Pomegranates

Leeks

Notes: Caneberries include blackberries and raspberries.

Contact Toni Williams at toni.williams@usda.gov for guidance and/or authorization 

for an unlisted eligible perishable commodity. 

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-4 
Par. 33 

33 Eligible FSFL Commodities (Continued)

D Hay 

Hay means a grass or legume that has been cut and stored, and includes the following:

• commonly used grass mixtures include the following:

• brome 

• costal Bermuda 

• fescue grass

 millet

• orchard grass 

• rye grass 

 sorghum/sudan

• timothy grass

• other native grass species prevalent in the region

• forage legumes include the following:

• alfalfa

• clovers 

• trefoil

• grain legumes include, but are not limited to, the following:

• lentils

• peas

• soybeans 

• all FSFL commodities that are baled after harvest for animal feed qualify as hay 

including wheat straw, peanuts, and corn stubble. For example; wheat stubble baled that

will be used for animal feed.

 *--Notes: Processed and purchased hay is ineligible for FSFL financing.--* 

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-5 
Par. 33 

33 Eligible FSFL Commodities (Continued)

E Renewable Biomass

Renewable biomass means any organic matter that is available on a renewable or recurring 

basis used for the production of energy in the form of heat, electricity, and liquid, solid, or 

gaseous fuels. Renewable biomass includes the following:

• algae

• crop residue including, but not limited to:

• corn stover 

• orchard prunings 

• various straws and hulls 

• plants and trees, excluding old growth timber

• renewable plant materials as follows:

• feed grains 

• other agricultural commodities including, but not limited to:

• soybeans 

• switch grass

• vegetative waste (compost) material including, but not limited to:

• food waste 

• wood residue 

• wood waste 

• yard waste.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-6 
Par. 33 

33 Eligible FSFL Commodities (Continued) 

F Honey Floral Sources 

The following provides honey floral sources that are eligible for FSFL. 

Note: The eligible floral sources are the same as for MAL and LDP. 

Floral Sources 

Alfalfa Mangrove 

Apple Manzanita 

Aster Mesquite 

Athel Mint 

Avocado Orange 

Basswood Partridge Pea 

Bird’s-foot Trefoil Raspberry 

Blackberry RattanVine 

Blueberry Safflower 

Brazil Brush Sage 

Brazilian Pepper Salt Cedar (Tamarix Gallica) 

Buckwheat Saw Palmetto 

Cabbage Palmetto Snowberry 

Catsclaw Sourwood 

Chinese Tallow Soybean 

Clover Spanish Needle 

Cotton Spikeweed 

Dandelion Star Thistle (Barnaby’s Thistle) 

Eucalyptus Sunflower 

Fireweed Sweet Clover 

Gallberry Titi 

Goldenrod Toyon 

Heartsease (Smartweed) Tulip Poplar 

Horsemint Tupelo 

Huajillo Vetch 

Kiawe Western Wild Buckwheat 

Knapweed (American) Wild Alfalfa 

Lima Bean Wild Cherry 

Loosestrife Yaupon 

Macadamia 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-7 
Par. 33 

33 Eligible FSFL Commodities (Continued) 

G Floriculture 

For FSFL purposes, floriculture is defined as potted or cut plants, bulbs, tubers, and seeds 

grown in a field or in a nursery. These would include but are not limited to: 

 flowering shrubs and bushes 

 potted flowering plants 

 foliage plants 

 potted herbaceous perennials 

 annual bedding/garden plants 

 cultivated greens 

 broadleaf evergreens 

 coniferous evergreens 

 deciduous shade trees 

 deciduous flowering trees 

 deciduous shrubs 

 ornamentals plants 

 fruit and nut plants 

 Christmas trees. 

H Milk 

The following are eligible species for a milk FSFL: 

 cow 

 goat 

 sheep 

 buffalo. 

 *--Note: The eligible species must be owned or leased for at least 30 calendar days.--* 

I Butter, Cheese, Eggs, Yogurt 

Eligible butter, cheese, eggs and yogurt must be from producing animal, hen, or other egg 

laying species or livestock that the producer owned or has leased for at least 30 calendar 

days. COC must determine this requirement is met. 

 *--The eligible producer’s individually packaged or bulk butter, cheese, eggs and yogurt 

products are eligible storage commodities.--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-8
Par. 33 

33 Eligible FSFL Commodities (Continued) 

J Meat and Poultry 

For FSFL purposes, the following are eligible livestock species: 

 adult or nonadult beef cattle 

 adult or nonadult beefalo 

 adult or nonadult buffalo 

 adult or nonadult dairy cattle 

 elk 

 moose 

 alpacas 

 deer 

 emus 

 goats 

 llamas 

 rabbits 

 poultry, including egg-producing poultry 

 sheep 

 swine. 

For storage purposes, the slaughtered meat and poultry may be: 

 cured (salt or sugar) 

 cut/sliced 

 smoked 

 ground. 

 *--Note: The producer must adhere to all applicable State laws for storing the slaughtered--*

meat and poultry in the FSFL storage collateral. 

For FSFL purposes, all other processing methods, such as but not limited to the following, 

are not eligible for a meat and poultry FSFL: 

 cooking 

 baking 

 churning 

 canning 

 jarring 

*--dyeing--*

 other methods determined by STC. 

For questionable situations, contact Toni Williams in the National Office at 

toni.williams@wdc.usda.gov. 

For a producer to be considered eligible for a meat and poultry FSFL, COC must determine 

 *--the producer owned or leased the eligible livestock species for at least 30 calendar days.--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-9 
Par. 33 

33 Eligible FSFL Commodities (Continued) 

K Aquaculture 

Aquaculture species, for FSFL purposes, are defined as any species of aquatic organisms 

grown as food for human consumption, or fish raised as feed for fish that are consumed by 

humans. Aquaculture species include, but are not limited to: 

 general species: 

 sturgeon fish

 fish eggs

 caviar

 catfish

 crustaceans: 

 crabs 

 crawfish for food 

 lobster 

 prawns, freshwater 

 shrimp, saltwater 

 fin fish which include: 

 bass, hybrid striped 

 carp 

 perch, yellow 

 tilapia 

 trout 

 mollusks: 

 abalone 

 clams 

 mussels 

 oysters 

 scallops 

 seaweed: 

 kelp 

 dulse 

 laver 

 gacilaria 

 sea lettuce. 

COC must determine the producer owns or has leased property with readily identifiable 

boundaries to produce the eligible aquaculture species for at least 30 calendar days. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-10 
Par. 33

33 Eligible FSFL Commodities (Continued)

L Hops

For hops to be considered eligible for the FSFL program, the producer must own or lease

property with readily identifiable boundaries. COC must determine this requirement is met. 

M Maple Sap

For maple sap to be considered eligible for the FSFL program, the producer must own or has 

leased the sugar bush with readily identifiable boundaries for at least 30-calendar days. COC 

must determine this requirement is met. 

Note: Maple syrup storage and handling is eligible for FSFL financing.

*--N Hemp

The 2018 Farm Bill authorizes the production of hemp at 0.3 or less of THC content in the 

United States. For hemp to be considered eligible for the FSFL program, the strain of the 

cannabis sativa plant species must be grown specifically for the industrial uses of its derived 

products.

Hemp growers will be required to obtain a USDA, State, or Tribal issued hemp production 

license or authorization number, and file an acreage report with FSA.

Notes: Processed hemp and/or purchased hemp is not eligible for FSFL financing. 

The AMS regulation providing eligibility for hemp production for the 2020 crop year 

is found at https://www.ams.usda.gov/rules-regulations/hemp. 

O Seed Cotton

FSFL requests may be accepted for seed cotton handling, storage, and transport equipment.

P Wool

For wool to be considered eligible for the FSFL program, the producer must maintain and 

own the sheep for 30 calendar days or more before date of shearing.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-10.5

(and 2-10.6)
.
Par. 34

34 Ineligible FSFL Commodities

A List of Ineligible FSFL Commodities

The following are ineligible FSFL commodities:

• a commodity without a food value or energy value

• cider

• corn gluten

• firewood

* * *

●*--honeybees (beehives)--*

• illegal substances

• juices processed from an eligible commodity

• manure

• marijuana (ineligible for Federal assistance)

• old growth timber

• processed commodities, unless identified in subparagraph 33 H, I, or J, which includes 

but is not limited to baking, canning and jarring

●*--roller creepfeeder

• tobacco--*

• waste from domestic/residential/municipal sources

• waste from food source operations or food processing plants

• wine.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-11
Par. 35 

35 Eligible Applicants

A Basic Requirements

[7 CFR 1436.5] Eligible applicant means any person, as defined in Exhibit 2, who, as a 

landowner, landlord, operator, producer, leaseholder, tenant, or sharecropper, meets all of the 

following eligibility requirements:

• demonstrates compliance with NEPA according to 40 CFR Parts 1500 through 1508, 

 *--7 CFR Part 799, and 1-EQ and 2-EQ--* 

• is in compliance with USDA provisions for HEL and WC according to 7 CFR Part 12 

• has no delinquent Federal nontax debt as defined by DCIA of 1996 unless the delinquent 

debt is resolved before FSFL is disbursed

• has not been convicted under Federal or State law for a disqualifying controlled 

substance violation according to 1-CM, Part 30 or a crop insurance violation under 7 

Part 718 

• is a producer of FSFL commodities as provided in paragraph 33

Notes: County Offices must review FSA-578’s, including late-filed, to ensure that the 

producer produces eligible FSFL commodities.

Purchased commodities are not authorized for FSFL benefits.

• has a satisfactory credit history as determined by CCC

• demonstrates the ability to pay the downpayment and repay the debt resulting from FSFL 

• demonstrates a need for increased storage capacity, unless the producer is submitting 

CCC-185 only for eligible handling and drying equipment, storage and handling trucks, 

or renovating an approved storage structure

• provides proof of multi-peril crop insurance offered under the Federal Crop Insurance

Program, NAP, or dairy insurance, on all eligible FSFL commodities

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-12 
Par. 35 

35 Eligible Applicants (Continued) 

A Basic Requirements (Continued) 

 demonstrates compliance with any applicable local zoning, land use, and building codes 

for the applicable farm storage facility structures 

 provides all-peril structural insurance and, if required, flood insurance. 

Note: If the county flood map is updated, either before or after FSFL disbursement, and 

the flood map indicates FSFL is in an area requiring flood insurance, the producer 

must immediately purchase insurance. This also applies if it is later discovered 

that flood insurance should have been required before FSFL disbursement. 

CCC-941 does not apply to FSFL’s. 

B Determining Borrowing Entity 

 *--County Offices must: 

 determine the borrowing entity from CCC-902 according to 5-PL 

 allow borrowers who are otherwise eligible to enter into joint FSFL’s with another 

eligible borrower, if adequate security requirements can be met 

 require FSFL’s to be joint when more than 1 borrower or entity has an interest in the 

 *--items(s) that will be financed with FSFL--*

Example: Two brothers with separate farming operations are submitting CCC-185 for 

1 grain storage bin. The brothers will be required to obtain 1 joint FSFL for 

 *--the bin. The bin will be jointly owned with each brother jointly and severally 

responsible and liable for the entire FSFL. They may not apply for 2 separate 

FSFL’s, such as each for one-half the FSFL principal.--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-13 
Par. 35 

35 Eligible Applicants (Continued) 

B Determining Borrowing Entity (Continued) 

*--not permit schemes to be perpetrated to the evade the FSFL limit per structure--* 

Note: The borrowing entity will be the producer: 

 of FSFL commodities that require storage at the proposed storage location 

 who meets all other requirements. 

 inform borrowers submitting joint CCC-185, or borrowers who are partnerships or joint 

ventures, that all reminders and pertinent information on FSFL will be sent only to the 

 *--contact borrower--* 

 inform borrowers on joint FSFL’s that the contact borrower will receive IRS-1098 for the 

entire amount. 

C Applicants Who Are Minors

Applicants who are minors may be approved for FSFL if: 

 minor meets all eligibility requirements 

 minor signs CCC-186 

 financially responsible adult, as approved by COC, cosigns CCC-186. 

 *--One application fee is required for the minor, if the minor is the only producer of the 

commodity, however, a financial analysis is required for the minor and the adult who will 

cosign CCC-186.--* 

D Multiple Borrowers 

 *--Multiple borrowers are allowed for FSFL’s. Each borrower signing CCC-186 is jointly and 

severally liable for the entire FSFL amount.--* 

At this time, one IRS-1098 will be issued to the contact borrower. 

Example: Three brothers obtained a joint FSFL. One brother will be the contact borrower 

and receive IRS-1098 for the entire FSFL. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-14 
Par. 36

36 Eligible and Ineligible Structures and Equipment

A FSFL Suppliers or Vendors

County Offices may not create a list of FSFL equipment suppliers or vendors. Potential 

conflict of interest cases shall be handled according to 3-PM and 22-PM.

B Eligible Items for FSFL’s

The net costs that may be financed under FSFL’s include the following:

• appraisal cost

• approved electrical lighting, motor wiring, and installation labor

Note: The FSFL program supports energy efficient equipment; therefore, solar power

may be included in the loan request. The solar power must be used as an energy 

source for the FSFL structure or equipment only.

●*--archaeological or biological studies or attorney fees--*

• eligible equipment to maintain and monitor commodity quality

• fees, such as title insurance and motor vehicle title fees

• installation costs

• material and labor for utility hookup from meter to structure

Note: Utility includes electric lines, natural gas lines, and liquefied petroleum tanks 

used for the structure to operate.

• material and labor for concrete pads or other approved and acceptable flooring

• on-farm material approved by COC

• off-farm labor as defined in Exhibit 2

• purchase price and sales tax of structure or materials

• shipping and delivery charges

• site preparation costs.

Note: When net cost expenses are reviewed, State and County Offices may question if net 

costs are excessive and request guidance from COC or STC to determine if the costs 

are within reason. For questionable situations, contact the National Office for 

additional guidance.

8-20-19 1-FSFL (Rev. 3) Amend. 4 Page 2-15
Par. 36

36 Eligible and Ineligible Structures and Equipment (Continued)

B Eligible Items for FSFL’s (Continued)

The net cost shall not include the following:

• on-farm labor as defined in Exhibit 2

• cost to tear down an existing structure

* * *

• real estate

• travel expenses of the vendors

• gas line or electrical hookups from the utility supply source to the producer’s meter.

*--Note: A down payment made to the contractor, dealer, supplier, or vendor for the storage 

facility or equipment does not mean the facility or equipment was purchased.--*

C Eligible Storage and Handling Facilities for All FSFL Eligible Commodities

Each storage facility is eligible for the maximum FSFL amount as provided in paragraph 60. 

If a storage structure is not determined to be a stand-alone structure, as defined in Exhibit 2, 

only one FSFL may be approved for the storage structure. A lien will be placed on the entire 

structure. Contact the National Office for questionable situations.

[7 CFR 1436.6] FSFL’s shall only be made for purchasing and installing eligible new or 

used, portable or permanently affixed, storage facilities, including pre-fabricated structures, 

drying or handling equipment, or remodeling existing facilities as follows:

• conventional type cribs or bins designed and engineered for FSFL commodity storage 

having a useful life of at least the term of the loan

• oxygen-limiting and other upright silo-type structures designed for FSFL commodity 

storage having a useful life of at least the term of the loan

• flat-type storage structures, including a permanent concrete floor and bulkheads, designed 

for and primarily used to store FSFL commodities for at least the term of the loan

• concrete foundations, aprons, pits, and pads, including site preparation, labor, and 

material, essential to the proper operation of the storage and handling equipment

• concrete pads without walls or separate, detachable sides on which an FSFL commodity 

is stored

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-16
Par. 36 

36 Eligible and Ineligible Structures and Equipment (Continued)

C Eligible Storage and Handling Facilities for All FSFL Eligible Commodities

(Continued)

• structures that are bunker-type, horizontal, or open silo structures, with at least 2 concrete 

walls and a concrete floor, designed for FSFL commodity storage and having a useful life 

of at least the term of the loan 

• renovating existing storage, according to paragraph 41, without an increase in storage 

capacity

• remanufactured oxygen-limiting storage structures built to the original manufacturer’s 

design specifications using original manufacturer’s rebuild kits designed for FSFL 

commodity storage and having a useful life of at least the term of the loan 

Notes: STC’s:

• are strongly encouraged to only allow rebuilt kits from the original 

manufacturer of oxygen-limiting storage structures to ensure that these 

structures are rebuilt correctly and ensure the safety of the structure

• are authorized to approve rebuilt kits from original manufacturer of 

oxygen-limiting storage structures for FSFL’s $25,000 or less 

• may request a DAFP waiver to allow companies other than the original 

manufacturer of the oxygen-limiting storage structure to supply rebuild kits 

for FSFL-financed structures. 

DAFP waiver requests shall:

• follow paragraph 25 

• be for the specific company located at a specified location

• be submitted before approving FSFL’s using manufacturer’s rebuild kits 

• include copies of all pertinent information about the following: 

• company 

• how their rebuild kits are manufactured 

• warranty offered on their rebuild kits. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-17 
Par. 36

36 Eligible and Ineligible Structures and Equipment (Continued)

C Eligible Storage and Handling Facilities for All FSFL Eligible Commodities 

(Continued)

• area of the shed/structure to house and protect electronic and control equipment

• walk-in including prefabricated storage coolers or containers

• cheese storage structures

• portable storage containers, essential to the proper storage of the eligible commodity

• bulk tanks suitable for storing honey, maple sap, and milk

• portable storage facilities and containers which are manufactured storage containers that 

may be used when transported, hitched, or mounted on a trailer or truck for the purpose 

of storing and handling eligible commodities

• uptake and discharge re-circulatory systems that are used for storage and holding tanks 

for aquaculture products, wherein the water used is exclusively from on-farm aquifers

and is discharged back on the farm

Note: FSFL’s are authorized when the holding or storage structure will have uptake or 

discharge water that comes from natural sources, tributaries, coastal and ocean 

waters, or perennial waterways.

• electrical equipment, such as lighting, motors, and wiring, integral to the proper operation 

of the storage and handling equipment, excluding installing electrical service to the 

electrical meter

• equipment to improve, maintain, or monitor the quality of stored FSFL commodities, 

such as cleaners, moisture testers, and heat detectors, along with a proposed storage 

facility

• handling and drying equipment determined by COC to be needed and essential to the 

proper functioning of a storage system, without showing a need and/or obtaining FSFL 

for the storage structure

• liquefied petroleum tanks to fuel dryers

• safety equipment, as required by CCC, such as lighting and inside and outside ladders.

Note: County Offices are not responsible for determining that equipment meets OSHA 

standards.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-18
Par. 36

36 Eligible and Ineligible Structures and Equipment (Continued)

D Ineligible Storage and Handling Facilities for All FSFL Eligible Commodities

Ineligible storage and handling equipment includes the following:

• structures of a temporary nature that require the weight or bulk of the commodity stored 

to maintain its shape, such as fence or bags, not having a useful life of at least the term of 

the loan

• storage area included in the capacity worksheet to house (store) handling equipment or 

storage and handling trucks in the storage structure 

*--Example: Storage area to park and house a hay wagon is ineligible storage area. Storage 

area to house a wash station is eligible.

● storage area for office space, store front, restrooms, or breakrooms--*

• storage structures to be used for purchased commodities or for commercial purposes, as 

defined in Exhibit 2

• structures determined by COC and/or STC that are not suitable for storing FSFL 

commodities for which a need is determined

●*--condominium storage--*

• feed handling and processing equipment.

Note: When necessary, STC’s or COC’s are authorized to review CCC-191s, bills, invoices 

and/or sales receipts to determine if the FSFL components are reasonably priced and 

determine final eligibility or ineligibility of the cost to be included in the FSFL.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-19
Par. 37

37 Eligible and Ineligible Structures for Hay and Renewable Biomass Storage

A Eligible Structures

All FSFL-financed storage structures for hay and renewable biomass commodities must be

used for the purpose for which they were constructed, assembled, or installed for the entire 

FSFL term.

FSFL eligible storage structures for hay and renewable biomass commodities:

• must have a useful life of at least the term of the loan

• must be built:

• of such quality that the structure can be insured

• to support snow load for the area

• with proper drainage.

• include structures suitable for storing the following:

• hay, that are built according to acceptable design guidelines from NIFA or land-grant 

universities

• renewable biomass, that are built according to acceptable industry guidelines.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-20
Par. 37

37 Eligible and Ineligible Structures for Hay and Renewable Biomass Storage (Continued)

A Eligible Structures (Continued)

Producers are required to submit a building plan to the County Office for any hay or 

renewable biomass storage structures requested for FSFL.

Note: The building plan does not have to be professionally prepared, but must include the 

following:

• type of structure or building design

• exact size and shape of proposed facility

• access

• details of site preparation, including leveling and soil compacting

• base materials, including type, size, and depth of rock or gravel used

• construction materials, including type and gauge of material used for the entire 

structure.

Many of the land-grant universities have the following available online:

• detailed building plans for hay structures

• plans for structures suitable for storing renewable biomass commodities.

B Eligible Components

FSFL’s for hay and renewable biomass storage structures may include the following:

• safety equipment meeting OSHA requirements

• equipment to maintain and monitor the quality of stored eligible hay and renewable 

biomass commodities, such as heat detectors

• electrical equipment

• concrete aprons essential to proper facility operation

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-21
Par. 37 

37 Eligible and Ineligible Structures for Hay and Renewable Biomass Storage (Continued)

B Eligible Components (Continued)

• flooring: 

• suitable for the region where the facility is located

• designed according to acceptable guidelines from NIFA or land-grant universities

• made to avert water so the floor does not retain moisture.

Notes: In some regions of the country, NIFA and land-grant universities do not

recommend storing hay and renewable biomass commodities on concrete. 

Acceptable alternatives have been developed that include using compacted 

coarse gravel or small rock.

Asphalt flooring may only be used if built to the specifications in

 *--paragraph 40 and in keeping with provisions of 2-EQ, paragraph 81 to manage 

related risks and FSA indemnified against related risks.--* 

C Eligible Items for FSFL’s

See subparagraph 36 B for eligible items. 

D Ineligible Items for FSFL’s

See subparagraph 36 D for ineligible items. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-22 
Par. 38 

38 Eligible and Ineligible Structures for Eligible Perishable Commodity Cold Storage 

A Eligible Structures 

FSFL-financed cold storage structures for eligible perishable commodities must be used for 

the purpose for which they were approved for the entire FSFL term. 

Note: See Exhibit 2 for the definition of cold storage facility. 

Cold storage facilities with a useful life of at least the term of the loan and eligible for 

FSFL’s include the following: 

 cold storage facility of wood pole and post construction, steel, or concrete suitable for 

storing eligible perishable commodities produced by the producer 

 walk-in including prefabricated, cold storage coolers that are suitable for storing the 

producer’s eligible perishable commodities 

 freezer units suitable for storing eligible commodities. 

FSFL eligible cold storage structures must be built: 

 of such quality that the structure can be insured 

 to protect the eligible commodity from contaminants 

 to support local climate conditions for the area. 

Cold storage facilities must be built according to acceptable design guidelines from the 

manufacturer, NIFA or land-grand universities. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-23 
Par. 38 

38 Eligible and Ineligible Structures for Eligible Perishable Commodity Cold Storage 

(Continued) 

B Eligible Components 

Cold storage structures may have components that are permanently affixed or portable. See 

*--subparagraph 43 B for eligible components and equipment.--* 

Notes: The area of a structure required to affix or station eligible handling equipment is 

eligible, in addition to the cold storage space. 

Contact the National Office if a component is not listed to confirm eligibility of the 

component or questionable situations. 

C Eligible Items for Eligible Perishable Commodity FSFL’s 

See subparagraph 36 B for eligible items. 

D Ineligible Structures and Components 

See subparagraph 36 D for ineligible items. In addition, the following are ineligible for 

eligible perishable commodity FSFL’s: 

 bin boxes 

 controlled atmosphere structures and components 

 store fronts to market the eligible perishable commodity 

 structures determined by STC or COC as not suitable for eligible perishable commodity 

cold storage. 

Note: Controlled atmosphere structures generally require rooms to be sealed so that gaseous 

exchange can be effectively controlled. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-24 
Par. 39

39 Eligible and Ineligible Structures for Honey

A Eligible Structures for Honey

FSFL-financed honey storage structures must be used for the purpose for which the structure 

was approved for the entire FSFL term.

Honey storage facilities loans, with a useful life of at least the term of the loan, may be 

approved for financing a facility or additions and/or modifications to an existing storage 

facility, if CCC determines there is a need for the capacity of the structure.

FSFL eligible storage structures for honey must be built:

• of such quality that the structure can be insured

• to protect the honey from adverse weather conditions built to support snow load for the 

area

• with proper drainage.

Honey storage facilities must be built according to acceptable design guidelines from NIFA 

or land-grant universities.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-25
Par. 39 

39 Eligible and Ineligible Structures for Honey (Continued)

B Eligible Components

FSFL’s for honey may include the following: 

• concrete aprons essential to proper facility operation 

• electrical equipment

• equipment to maintain and monitor the quality of stored honey, such as heat detectors 

• safety equipment meeting OSHA requirements

• flooring: 

• suitable for the region where the facility is located

• designed according to acceptable guidelines from NIFA or land-grant universities

• made to avert water so the floor does not retain moisture.

C Eligible Items for Honey FSFL’s

See subparagraph 36 B for eligible items. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-26 
Par. 39

39 Eligible and Ineligible Structures for Honey (Continued)

D Ineligible Structures and Components

See subparagraph 36 D for ineligible items. In addition, the following includes, but is not

limited to, structures and components ineligible for honey FSFL’s:

• controlled atmosphere structures and components

• processing equipment

• packing containers, such but not limited to retail honey containers

●*--storage space for storing bees or beehives--*

• structures of temporary nature that require the weight or bulk of the honey stored to 

maintain its shape

• structures determined by STC not suitable for honey storage.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-27
Par. 40

40 Asphalt Flooring for FSFL Structures

A Asphalt Flooring

Documentation from a number of land-grant universities, in certain regions, has concluded 

that asphalt flooring:

• is acceptable for usage in storage pads for agricultural commodities

• has proven to be even more resilient than concrete in bunker silos and storage pads

• is successful only if constructed properly.

FSFL applicants requesting to use asphalt flooring in structures to store corn, oats, wheat,

barley, and grain sorghum harvested as other than whole grain, must be advised by the 

County Office that:

• asphalt flooring must be constructed according to specific specifications in 

subparagraph B and 2-EQ, paragraph 81

• FSA is indemnified from any liability subsequently arising from the presence of asphalt 

or asbestos on the property

Note: If not constructed according to the specific specifications, FSFL approval and 

disbursement is not authorized.

●*--STC must review each CCC-185 and approve the CCC-185D for FSFL’s with asphalt--*

flooring.

B Specifications for Asphalt Flooring

COC’s or designee will be responsible for monitoring construction to ensure that the asphalt 

flooring is constructed according to all the specifications in this subparagraph.

Note: STC must determine:

• the number of field visits the County Office shall make to monitor construction

• if the following specifications may be modified on a case by case basis.

The following specifications must be followed for asphalt flooring for all commodities:

• 6- to 12-inch, well-packed, crushed gravel base with drainage both inside and outside the 

footing to prevent water from getting under the asphalt

• 4 to 6 inches of high-grade asphalt, including 3 to 5 inches of fine material and 1 inch of 

very fine material

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-28
Par. 40 

40 Asphalt Flooring for FSFL Structures (Continued)

B Specifications for Asphalt Flooring (Continued)

• compacted at least twice with a 20-ton roller: 

• first with a vibrating roller

• second with a finishing roller to remove ripples 

• sealed with an asphalt sealer.

C Required FSFL Spot Checks of Asphalt Flooring

County Offices are required to periodically conduct collateral checks of all outstanding 

FSFL’s according to paragraph 215. See subparagraph 215 B for additional requirements on 

asphalt flooring. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-29 
Par. 40

40 Asphalt Flooring for FSFL Structures (Continued)

D STC Action

For FSFL’s storing FSFL commodities, STC’s shall:

• determine, with the assistance of their land-grant university and NIFA, if asphalt is a 

viable option instead of concrete in their State

• if determined viable in the State:

• advise County Offices that asphalt flooring is acceptable only if properly constructed

• approve on a case-by-case basis, CCC-185D’s for using asphalt flooring.

E COC and County Office Action

For FSFL’s storing FSFL commodities, COC’s and County Offices must:

• inform FSFL applicants requesting to use asphalt flooring in their structures:

• that STC approval, on a case-by-case basis, is required

• of construction specifications required for asphalt flooring according to 

subparagraph B

●*--FSA must be indemnified from any liability that may be associated with the presence 

of asphalt or asbestos on the property as provided by 2-EQ, paragraph 81--*

• submit each CCC-185 and CCC-185D to STC for approval before construction.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-30
Par. 41

41 Renovating Structures and Preowned Facilities

A Renovating Facilities

Approval of CCC-185D for renovated structures must comply with all eligibility

*--requirements, including the environmental review. See 1-EQ, paragraph 43 regarding 

consultations and special limitations regarding structure which may be over 50 years old or 

located within historic districts--*

Existing structures for all FSFL eligible commodities are eligible for FSFL renovations as 

long as all requirements are met. Authorized loan terms for FSFL renovations are 3 and 5 

years only.

Note: National Office, when a case is submitted for review, will determine if a longer term 

should be authorized.

Storage that is deteriorated to the point where it is, in STC or COC’s opinion, no longer 

functional for storage purposes, will not be considered as existing storage capacity.

CCC-185D’s may be approved for financing additions to, or modifications of, an existing 

storage facility with an expected useful life of at least the term of the loan, if COC 

determines that the modification is:

• necessary to renovate the storage capacity of the unit

• not for maintaining, repairing, or replacing worn out items, such as motors, fans, and 

wiring that do not have a useful life of at least the term of the loan

• for items, such as the following:

• replacing cement or wooden floors

• grain kit for flat storage walls and bulkheads, as needed

• drying, aeration, or handling equipment

• replacing any deteriorated bin walls or rings, roof panels, or other roofing material 

and related off-farm labor costs

• refrigeration units.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-31
Par. 41

41 Renovating Structures and Preowned Facilities (Continued)

B Preowned Structures

FSFL’s may be approved for components of used or preowned structures that are purchased 

and/or moved to a new location. Allowable net cost items are items such as the following:

• purchase of the used or preowned structure

• site preparation

• foundation material and off-farm labor

• off-farm labor to erect the used or preowned structure

• doors, roof panels, and rings needing replacement

• dryer systems

• installation.

The producer is responsible for the costs to disassemble and move the structure. 

FSFL’s will not be used to purchase real estate. The producer is responsible for the cost of 

the underlying real estate.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-32
Par. 42

42 Eligible and Ineligible Storage and Handling Trucks

A Eligible Storage and Handling Trucks

FSFL-financed storage and handling trucks new or used must be used for the purpose for

which they were acquired for the entire FSFL term.

A storage capacity calculator worksheet is not required for eligible storage and handling

truck FSFL requests.

Eligible storage and handling trucks, new or used, include the following, for FSFL purposes:

• cold storage trucks; a van or truck designed to carry perishable freight at specific

temperatures. Cold storage trucks differ from simple insulated and ventilated vans

which are commonly used for transporting fruit. Cold storage trucks can be ice-cooled

or equipped with any variety of mechanical refrigeration systems.

• flatbed trucks; truck that has an open body in the form of a platform with no side

walls for easy loading and unloading. These trucks can be categorized into different

sizes which range from light, medium, or heavy duty, compact or full-size, or short

and expandable beds.

• grain trucks; a piece of farm equipment * * * made to accommodate grain products and

are traditionally truck chassis units with a mounted grain “dump” body where grain

*--commodities are transported from a field to either a point of sale or a storage bin.

Note: Similar trucks are eligible to transport other eligible FSFL commodities, such 

as but not limited to, onions and potatoes.--*

• storage trucks with a chassis unit; commonly referred to as a box truck, box van or

straight truck, is a truck with a cargo body mounted on the same chassis with the

engine and cab.

●*--semi-trucks or truck tractors, any vehicle configuration consisting of a power-unit 

designed in combination to draw or pull a semi-trailer or farm machinery. 

Notes: All laws and regulations on the use of agriculture vehicles must be followed;

including but not limited to, any weight restrictions imposed by State or local 

authorities.

There is no limit on the number of storage and handling truck FSFL requests a 

producer may submit; however, COC or STC must review the business operation to 

ensure the storage and handling trucks are not being purchased for a commercial 

operation and/or purposes, according to the definition in Exhibit 2.--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-33
Par. 42

42 Eligible and Ineligible Storage and Handling Trucks (Continued)

A Eligible Storage and Handling Trucks (Continued)

* * *

FSA-850 must be completed for a storage and handling truck; however, a site visit is not

required. See Exhibit 10 for an example of FSA-850 for a storage and handling truck

FSFL request.

The new or used storage and handling truck must not have been purchased before the 

FSFL request (CCC-185) was submitted in the County Office, FSA-850 completed and 

CCC-185D approval provided.

State Offices must contact the National Office when there are questions about eligible and

ineligible storage and handling trucks.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-34
Par. 42

42 Eligible and Ineligible Storage and Handling Trucks (Continued)

A Eligible Storage and Handling Trucks (Continued)

Producers requesting a storage and handling truck FSFL must:

• properly register the truck with the applicable State MVA and all State and local MVA

laws and insurance

• obtain a clear Certificate of Title

• use the FSFL collateral for at least the entire FSFL term

*--provide a valid VIN for the truck--*

• obtain the required State emissions and vehicle inspection

• obtain full coverage (comprehensive and collision) automobile insurance policy

which must be renewed annually throughout the term of the loan.

Notes: * * *

The automobile insurance policy must be provided to the County Office, 

according to paragraph 98.

See paragraph 98 for State supplemental policy requirements.

For questionable situations, consult with the regional OGC and/or an FSA 

employee with loan approval authority to ensure that registration and/insurance 

requirements are in accordance with all State and local MVA laws.

The required lien search fees and UCC-1 filings are paid by CCC.

FSFL’s for storage and handling trucks have different requirements for maximum term of 

the loan. See subparagraph:

• 59 B for FSFL microloan terms

• 60 D for regular FSFL terms.

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2-35
Par. 42

42 Eligible and Ineligible Storage and Handling Trucks (Continued)

B Ineligible Storage and Handling Trucks

Ineligible storage and handling trucks include the following for FSFL purposes:

• pick-up trucks; a light or heavy duty truck having an enclosed cab and an open bed

with low sides and tailgate

• dump trucks; a truck chassis with a dump body that can be tilted and mounted to

the frame used for transporting loose material and discharging its contents

through an open tailgate

●*--truck repairs and replacement parts

• warranty plans

• maintenance plans.--*

Also, ineligible for FSFL financing are storage and handling trucks:

• with a salvaged title

• determined by STC or COC to not have a lifespan of at least the entire FSFL term

• determined by STC or COC as not suitable for the applicable commodity

• cannot meet all of the requirements in subparagraph A.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-36
Par. 43 

43 Storage and Handling Equipment

A FSFL for Portable or Permanently Affixed Equipment

FSFL-financed equipment and handling components must be used for an eligible commodity 

and for the purpose the funds acquired to purchase, construct, assemble or install for the 

entire FSFL term and may be portable or permanently affixed.

FSFL’s are for storage and handling equipment and storage and handling trucks only. 

Equipment for crop production, feeding livestock or harvesting is not eligible for FSFL’s.

The new or used equipment and handling components must not have been purchased before 

CCC-185 was submitted in the County Office and CCC-185D is approved/disapproved. 

Note: A down payment made to the dealer or vendor for the equipment does not mean the 

equipment was purchased. 

Along with the FSFL request, a dated statement with the intent to purchase, or sales 

contract/order, must be provided and must include the location and description of the 

equipment and handling components. 

A storage calculator worksheet is not required for handling equipment only FSFL requests. 

 *--An environmental review for NEPA compliance must be completed for handling 

equipment FSFL requests; however, a site visit is not required, unless there will be 

ground disturbance for any of the equipment installation related infrastructure, or there 

are extraordinary circumstances as provided by 1-EQ, paragraph 25. Ground disturbance 

includes removal of vegetation as well as action related to running utility lines. See 

Exhibit 10 for an example of FSA-850 for a handling equipment FSFL.--* 

State and County Office employees must be allowed to inspect the equipment and 

handling components using CCC-295A or CCC-295C when necessary, before approval. 

The inspection results will assist with determining a fair and reasonable value, according 

to subparagraphs 122 J and K. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2-37
Par. 43

43 Storage and Handling Equipment (Continued)

B Eligible Equipment

Eligible equipment necessary for eligible FSFL commodities may include the following:

• augers

• automatic bale stackers

• back-up generators

• baggers/unloaders, excluding bags

• bale accumulators

• bale band-its, excluding ties

• bale bed carrier

• bale wrappers, excluding wrapping supplies

• bottler systems for honey and milk, excluding the honey and milk containers

• boxers

• brush polishers

• bulk bin tippers

• case palletizers

• circulation fans

• cold dip tanks

• conveyors

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-38
Par. 43

43 Storage and Handling Equipment (Continued)

B Eligible Equipment (Continued)

• dryers

• drying sheds, trailers and tunnels

• dumpers

• dump carts

• electrical equipment, such as lighting, motors, and wiring integral to the proper operation 

of an eligible structure

• fans

• food safety-related equipment, such as sanitizing or pre-washing filter tanks

• forklifts

• freezers, including blast freezers

• front and rear-end loader attachments

• fruit and/or vegetable hoppers

• generators

• grain carts with auger systems

• grain hauler trailers

• grain vacuums

• gravity flow wagons

• gripper attachments

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2-39
Par. 43

43 Storage and Handling Equipment (Continued)

B Eligible Equipment (Continued)

●*--hanging carcass rail and winch--*

• hay spears and attachments

●*--hay squeeze--*

• hay wagons

• hoppers

• hydrolifts

• hydrocoolers

• ice machines

• lines to evaporator

• liquidated petroleum tanks to fuel dryers

• pallet jacks

• pilers

• plumbing installed from the milk bulk tank for cleaning purposes

• quality graders

• racking systems

• refrigeration units or systems

* * *

• roller spray units

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-40
Par. 43

43 Storage and Handling Equipment (Continued)

B Eligible Equipment (Continued)

• safety equipment meeting OSHA requirements

Note: County Offices are not responsible for determining that equipment meets OSHA 

standards. 

• sealants

• self-dumping or non-dumping hay trailers

• self-propelled fork lifts

• shelves

• sizers

• skid steers

• solar panels

• sorting bins and/or tables

• telehandler

• walk-in coolers

• washers

Note: Not to include truck washers or waxers. 

• waxers

• weight graders

• weight scales:

• portable

• concrete installed weight scales to weigh the FSFL commodity

Note: FSFL requests for weigh scales exceeding $100,000, must be reviewed on a case 

by basis by STC to determine whether the need is justified for the producer’s 

operation. 

●*--winch--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-41
Par. 43

43 Storage and Handling Equipment (Continued)

B Eligible Equipment (Continued)

• equipment to improve, maintain, or monitor the quality of stored FSFL commodities, 

such as cleaners, moisture testers, and heat detectors, along with a proposed storage 

facility

• handling and drying equipment determined by COC to be needed and essential to the 

proper functioning of a storage system

• electrical equipment, such as pumps, lighting, motors, and wiring, integral to the proper 

operation of the storage and handling equipment, excluding installing electrical service to 

the electrical meter. 

* * *

*--The following are examples of seed cotton packing, handling, storage, and transport 

equipment eligible for FSFL: 

• module builder 

• boll buggy

• storage structures, such as shed or concrete pad

• tractor implements to carry and stage modules

• hauling equipment, such as module truck, semi-trailer, or trailer

• other types of equipment COC determines essential to secure the quality of lint before 

ginning.--*

Note: STC’s may request DAFP approval of a wind turbine on a case by case basis.

State Offices must contact the National Office when there are questions about eligible and 

ineligible drying and handling equipment. 

*--The purchase or use of energy efficient equipment is encouraged for FSFL financing.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-42
Par. 43

43 Storage and Handling Equipment (Continued)

C Ineligible Equipment

Ineligible storage and handling equipment includes the following for all commodity types:

• ATV/gator

• backhoes

• chicken houses

• combines 

• crushers

• extractors

• feed handling and processing equipment

• fuel trailers

• greenhouses

• grinders

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-43
Par. 43

43 Storage and Handling Equipment (Continued)

C Ineligible Equipment (Continued)

• hay balers

• hay mowers 

• hay rakes

• hay tedders

• hops baler

• hops picker

• livestock pens and trailers

• malting equipment

• milking machine pulsation units

• milking parlor equipment

• pay (wheel) loaders

• processing equipment

• production and feed facilities

• robotic milkers

• seed carts (pull type or trailered)

• silage blowers

• storage structures and handling equipment determined by STC or COC that are not 

suitable for the applicable commodity and do not have a lifespan of at least the term of 

the loan

• storage structures to be used for a commercial purpose, as defined in Exhibit 2

• structures of a temporary nature not having a useful life of the term of the loan

● tractors, excluding truck tractors.

Note: The cost to purchase or install ineligible equipment must not be included in FSFL.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-44
Par. 44

44 Types of Structures and Equipment Eligible and Ineligible for Milk

A Eligible Structures

FSFL-financed milk bulk tanks must be used for the purpose for which the milk bulk tank 

was constructed, assembled, or installed for the entire term of the loan. 

Milk bulk tank facilities, with a useful life of at least the term of the loan, may be approved 

for financing, including new facilities, or additions and/or modifications to an existing 

storage facility, if CCC determines there is a need for the capacity of the structure. 

FSFL eligible bulk tanks for milk must be:

• new, used, portable, or permanently affixed and built:

• of such quality that the structure can be insured

• to protect the milk from contaminants

• to support local climate conditions for the area

• properly drained.

Milk bulk tanks must be built according to acceptable design guidelines from the 

manufacturer, NIFA, or land-grant universities. The applicant shall provide this information 

to the County Office, if requested.

B Eligible Components

The following are eligible permanently affixed or portable bulk milk tank components:

• bulk tanks

• plate coolers

• freezers

• 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

• bottler system, excluding bottles

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-45
Par. 44

44 Types of Structures and Equipment Eligible and Ineligible for Milk (Continued)

B Eligible Components (Continued)

• electrical equipment

• concrete aprons and floors essential to proper facility operation

• flooring:

• suitable for the region where the facility is located

• designed according to acceptable guidelines from NIFA or land-grant universities

• made to avert water and drainage so the floor does not retain moisture.

All eligible components financed with FSFL funds must be insured and must not be used for 

commercial purposes.

C Ineligible Components

Ineligible storage and handling equipment includes the following:

• robotic milkers

• milk pulsators

• pasteurization units.

Note: FSFL financing is intended for post-milking equipment.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-46
Par. 45

*--45 Types of Structures for Wool Storage

A Eligible Structures

FSFL-financed structures for wool must be used for the purpose for which constructed, 

assembled, or installed for the entire FSFL term. 

Wool storage facilities, with a useful life of at least the term of the loan, and eligible for 

FSFL’s include the following: 

• a facility of wood pole and post construction, steel or concrete, suitable for storing wool 

produced by the borrower 

• walk-in prefabricated storage structures that are suitable for storing the wool production 

• a barn or hay shed. 

FSFL eligible storage structures for wool must be built: 

• of such quality that the structure can be insured 

• to protect the wool from contaminants

• to support local climate conditions for the area. 

Wool storage facilities must be built according to acceptable design guidelines from the 

manufacturer, NIFA, or land-grant universities.

B Types of Wool Handling, Drying Equipment and Storage and Handling Trucks 

Authorization is provided to approve FSFL’s for new or used wool handling, drying 

equipment and storage and handling trucks, provided it has a useful life of at least the term 

the loan. 

The following are examples of wool handling, drying equipment and storage and handling 

trucks eligible for FSFL: 

• other types of handling and drying equipment, portable or stationary, that are unique to 

the wool industry and COC determines are essential to the proper functioning of a wool 

storage facility 

• related equipment such as motors, electrical boxes and connections, pumps, lighting 

fixtures and wiring and COC determines are required for proper functioning of a wool 

storage facility 

• trucks and trailers 

• wagons.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-47
Par. 45

*--45 Types of Structures for Wool Storage (Continued)

B Types of Wool Handling, Drying Equipment and Storage and Handling Trucks 

(Continued)

Notes: If there are questions about any of the provisions, State Offices must contact the 

National Office for guidance. 

Wool storage, handling, drying equipment, and storage and handling trucks financed 

with FSFL must not be used for commercial purposes and processing equipment is 

ineligible.

46 Types of Structures Eligible for Hemp Storage 

A Eligible Structures 

Hemp storage facilities, with a useful life of the term of the loan, and eligible for FSFL’s 

may include the following: 

• new facility of wood pole and post construction, steel or concrete, suitable for storing 

hemp produced by the borrower

• new walk-in prefabricated, permanently installed cold storage coolers that are suitable for 

storing the producer’s hemp production 

• conventional type cribs or bins designed and engineered for FSFL commodity storage 

having a useful life of at least the term of the loan

• oxygen-limiting and other upright silo-type structures designed for FSFL commodity 

storage having a useful life of at least the term of the loan 

• flat-type storage structures, including a permanent concrete floor and bulkheads, designed 

for and primarily used to store FSFL commodities for at least the term of the loan 

• concrete foundations, aprons, pits, and pads, including site preparation, labor, and 

material, essential to the proper operation of the storage and handling equipment 

• concrete pads without walls or separate, detachable sides on which an FSFL commodity 

is stored--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-48
Par. 46

*--46 Types of Structures Eligible for Hemp Storage (Continued)

A Eligible Structures (Continued)

• structures that are bunker-type, horizontal, or open silo structures, with at least 2 

concrete walls and a concrete floor, designed for FSFL commodity storage and 

having a useful life of at least the term of the loan.

Notes: If a storage structure is not determined to be a stand-alone structure, as 

defined in Exhibit 2, only one FSFL may be approved for the storage structure 

and a lien will be placed on the entire structure. 

FSFL eligible storage structures for hemp must be: 

• built of such quality that the structure can be insured 

• built to protect the hemp from contaminates 

• built to support the snow load for the area 

• equipped with proper drainage. 

Hemp storage facilities must be built according to acceptable design 

guidelines from the manufacturer, NIFA, or land-grant universities.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2-49
.
Par. 47 

Part 3 Determining Storage Need and Applicable Waivers

47 Storage Need Self-Certification

A Self-Certification Storage Need for All Eligible Commodities

The provision in this paragraph applies to producers of all eligible FSFL commodities who 

have applied for a Microloan. See paragraph 59. 

Producers may self-certify to the storage capacity need when the aggregate outstanding 

balance is equal to $50,000 or less. A written storage need waiver request from the producer 

is not required at the time of loan request and during the term of the FSFL. 

Note: For the producer to be eligible to self-certify to the storage need, County Offices must 

verify the producer’s aggregate outstanding FSFL balance does not exceed $50,000. 

B Self-Certification Calculator Worksheet 

The storage need self-certification, must be:

• completed on a worksheet calculator available at http://www.fsa.usda.gov/programsand-services/price-support/Index

• filed in the producer’s FSFL folder. 

The self-certified information will be used by STC’s and COC’s when reviewing the FSFL

request to determine production reasonableness for the storage capacity need. 

SED’s may approve State Office developed storage capacity worksheet calculators for

determining the FSFL storage structure need. National Office concurrence is not required.

Important: For all storage structure FSFL’s, the: 

• storage capacity calculator worksheet must be attached to CCC-185

• producer must sign and date the storage capacity calculator worksheet

certifying to the requested storage need. 

Notes: In most instances, using the producer’s actual yield and production records for the 

eligible commodity, provides more accurate information for calculating the 

producer’s storage need.

According to 2-CP, subparagraph 322 C, State and County Offices may spot check 

any producer not identified on the national producer selection list if there is reason to

question the producer’s compliance with any program provisions. The National 

Office will annually determine if additional producers should be added to the national 

producer selection list for compliance. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-1 
Par. 48 

48 Determining Storage Need for Eligible Commodities Storing 2 Years of Production

A Storage Need Determinations 

When an applicant is not self-certifying to the storage need as provided in paragraph 47, 

County Offices shall calculate the FSFL storage need using guidelines in this paragraph. 

This requirement applies only to FSFL requests that are to build or increase the size of 

storage structures.

Storage capacity calculators are located on PSD’s web site at

http://www.fsa.usda.gov/programs-and-services/price-support/Index 

SED’s may approve State Office developed storage capacity worksheet calculators for

determining the FSFL storage structure need. National Office concurrence is not required.

STC’s may establish storage specifications for commodities that can be properly stored for 2 

years for their State using STC knowledge, NIFA, land-grant universities, available ARS 

publications, and extension guidelines. 

B General Statements on Calculating Acreage

A 3-year average acreage must be calculated for each FSFL commodity that requires storage 

at the proposed location, from the producer’s share of up to the 3 most recent FSA-578’s. 

Note: County Offices must use FSA-578’s for determining the average acreage of each 

eligible commodity.

A reasonable 1-year acreage and yield projection may be used instead of an average for any 

the following: 

• newly acquired farms 

• FSFL crops being grown for the first time

• cases where crop rotations adversely affect the acreage production

• cases where prevented planting or disasters adversely affect the average production. 

Notes: Follow 2-CP policy for failed and prevented planting. 

Producers may request an STC waiver to allow prevented planted acres that do not

fall within the 2-CP failed and prevented planting guidelines. 

For questionable situations, State Offices shall contact Toni Williams by e-mail to 

toni.williams@wdc.usda.gov. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-2 
Par. 48 

48 Determining Storage Need for Eligible Commodities Storing 2 Years of Production

(Continued)

B General Statements on Calculating Acreage (Continued)

When a farming operation reorganizes and the same individuals or entities continue to 

operate the farm, the cropping history applicable to the previous operation may be used. 

Late-filed FSA-578’s must be filed according to 2-CP and a late fee may be paid for each 

crop year FSA-578 was filed late; however, State Offices may request a DAFP waiver 

according to paragraph 25 when late-filed FSA-578’s do not meet the requirements in 2-CP, 

paragraph 21. STC’s can approve FSFL request of $100,000 or less. Other cases require a 

DAFP waiver. 

For FSFL’s for structures to store silage, use the average acreage harvested as silage.

For FSFL’s for structures for hay, use only the hay acreage from established farms.

STC’s are authorized to determine statewide, predominant use (intended vs actual) for hay 

acreage.

C Basic Information on Grain or Silage Yield Calculation 

The same unit of measure for yields must be used for each commodity. 

COC must determine the yield used for the storage calculation to be reasonable. The 

following are possible options for yields: 

• MAL yields established according to 8-LP

• crop insurance proven production yields 

• proof of actual production history provided by applicant. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-3 
Par. 48 

48 Determining Storage Need for Eligible Commodities Storing 2 Years of Production

(Continued)

D Formula for Eligible Commodities Storing 2 Years of Production

Applicants shall demonstrate a need for storage capacity as determined by the following 

formula. 

Step Action

1 Determine applicant and applicable farm operation from CCC-902.

2 Determine up to a 3-year average acreage for each FSFL commodity, as provided in 

subparagraph B, using the applicant’s share of crop on each tract and farm.

3 Multiply each average acreage times the applicable crop yield as provided in 

subparagraph C and total. Multiply the result by 2.

4 Deduct existing storage capacity (as defined in Exhibit 2) owned by the applicant

for the applicable crops.

5 IF result from step 4 is... THEN...

greater than zero the applicant is eligible for the needed capacity, 

not to exceed the producer’s proposed capacity or 

capacity to be upgraded.

less than zero notify the applicant that they are ineligible. 

Provide appeal rights according to 1-APP.

greater than zero, but less than 

proposed storage capacity

see paragraph 54.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-4 
Par. 49

*--49 Determining Storage Need for Hay, Biomass, and Seed Cotton--*

A Storage Need Determinations

Applicants must show a need for hay or renewable biomass storage as determined by the 

formula in this paragraph.

Before STC can approve an application for a renewable biomass FSFL, the applicants must

provide a contract or letter of commitment with the company or facility that will purchase the 

applicant’s biomass commodity.

Note: The contract or letter of commitment must be for at least 1 entire production and 

marketing cycle.

When an applicant is not self-certifying to the storage need as provided in paragraph 47, 

County Offices shall calculate the FSFL storage need using guidelines in this paragraph.

Storage capacity calculators are located on PSD’s website at

http://www.fsa.usda.gov/programs-and-services/price-support/Index.

SED’s may approve State Office developed storage capacity worksheet calculators for

determining the FSFL storage structure need. National Office concurrence is not required.

B Hay and Biomass Acreages

A 3-year average acreage must be calculated for hay or renewable biomass storage using up 

to the 3 most recent FSA-578’s.

See subparagraph 48 B for general information on calculating acreage.

C Hay and Biomass Yields

The unit of measure for hay and renewable biomass commodities will be in tons.

If State and County Offices are unable to determine an annual yield for any of the hay or 

renewable biomass commodities with the assistance of NIFA, land-grant universities, or 

available ARS publications, contact PSD.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-5
Par. 49

*--49 Determining Storage Need for Hay, Biomass, and Seed Cotton (Continued)--*

D Formula for Hay and Biomass Storage

An applicant’s needed storage can be determined with NIFA and land-grant university 

assistance or with the worksheet in Exhibit 20.

Applicable laws, regulations, construction codes, and zoning restrictions may affect the size 

of a facility and where it can be located.

The applicant shall provide the County Office with either of the following:

• dimensions of the facility to convert into cubic feet of available space

• capacity of the proposed structure in pounds or tons from the contractor constructing the 

storage facility.

COC’s shall use either of the following conversion factors and the worksheet in Exhibit 20 to 

determine the capacity of a proposed facility:

• 1 pound of hay requires 0.125 cubic feet of space

• 1 short ton of hay requires 250 cubic feet of space.

Note: These factors shall be used to determine the storage capacity of a structure unless the 

applicant supplies the County Office with detailed documentation of a different 

conversion factor.

The following publications may also assist State and County Offices in determining the 

capacity of a proposed structure:

• Oklahoma State University publication BAE-1716, titled “Round Bale Hay Storage”, 

available at

http://osufacts.okstate.edu/docushare/dsweb/Get/Document-1772/BAE-1716web.pdf

* * *

• Iowa State publications available at https://www.mwps.iastate.edu/building-plans.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-6
Par. 49

*--49 Determining Storage Need for Hay, Biomass, and Seed Cotton (Continued)--*

D Formula for Hay and Biomass Storage (Continued)

Applicants shall demonstrate a need for storage capacity as determined by the following 

formula. See Exhibit 20 for an example of the need calculation.

Step Action

1 *--Determine applicant entity and applicable farm operation from CCC-902, if 

available for other farm program purposes.--*

2 Determine up to a 3-year average acreage for each FSFL commodity, as provided in

subparagraph B, using the borrower’s share of crop on each tract and farm.

3 Multiply each average acreage times the applicable crop yield as provided in

subparagraph C and total. Multiply the result by 2.

4 Deduct existing storage capacity (as defined in Exhibit 2) owned by the applicant, 

for the applicable crops

5 IF result from step 4 is... THEN...

greater than zero the applicant is eligible for the needed capacity, 

not to exceed the applicant’s proposed capacity

or capacity to be upgraded.

less than zero notify the applicant that they are ineligible. 

Provide appeal rights according to 1-APP.

greater than zero, but less than 

proposed storage capacity

see paragraph 54.

*--E Storage Need Determinations for Seed Cotton

Applicants must show a need for the seed cotton capacity as determined by the following 

formula and information in this paragraph.

The quality of seed cotton can only be maintained for a limited period of time. The seed 

cotton storage need will be determined based on production from 1 year.

When an applicant is not self-certifying to the storage need as provided in paragraph 47, 

County Offices will calculate the FSFL storage need using guidelines in paragraph 50.

Storage capacity calculators are located on PSD’s website at

http://www.fsa.usda.gov/programs-and-services/price-support/Index.

SED’s may approve State Office developed storage capacity worksheet calculators for 

determining the FSFL storage structure need. National Office concurrence is not 

required.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-7
Par. 50

50 Determining Storage Need for Eligible Commodities Storing One Year of Production

A Storage Need Determinations for Eligible Perishable Commodities

Subparagraph 33 C provides a complete list of eligible perishable commodities.

Applicants must show a need for the cold storage capacity as determined by the following 

formula and information in this paragraph.

The cold storage need will be determined based on production from 1 year.

The quality of all eligible perishable commodities can only be maintained for a limited period 

of time. Cold storage facilities can extend this period of time and maintain the quality of 

eligible perishable commodities. 

See Exhibit 21 for a worksheet that can be used to compute the storage need requirement and 

capacity of a proposed structure for eligible perishable commodities.

When an applicant is not self-certifying to the storage need as provided in paragraph 47, 

County Offices shall calculate the FSFL storage need using guidelines in this paragraph.

Storage capacity calculators are located on PSD’s website at

http://www.fsa.usda.gov/programs-and-services/price-support/Index.

SED’s may approve State Office developed storage capacity worksheet calculators for

determining the FSFL storage structure need. National Office concurrence is not required.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-8
Par. 50 

50 Determining Storage Need for Eligible Commodities Storing One Year of Production

A Storage Need Determinations for Eligible Perishable Commodities (Continued)

County Offices may determine the need for cold storage by using 1 of the following: 

• the basic formula storage calculation according to subparagraph D

• verifiable information to determine a 3-year average that may include, but is not limited 

to: 

• actual acreage yields used to produce the eligible commodity, by type or in aggregate 

Notes: For aquaculture, actual yield (not acreage). 

For other animal-type production, per producing animal. 

• actual production records, by crop or aggregated by categories

• records of sales, volume sold, or other business records that can be extrapolated to 

demonstrate cold storage need

Example: Farmers market sales may not be broken out by commodity, but controlled 

by stall space or vehicle size.

• production shares as part of a community-supported agriculture business. 

Notes: In some instances, using the producer’s actual yield for the eligible perishable 

commodities and production records provides more accurate information for 

calculating the producer’s cold storage capacity need.

Producers may request the storage need waiver, in writing, according to 

subparagraph 53 B. The waiver determination must be maintained in the FSFL 

folder and documented in STC or COC meeting minutes, based on the requested 

FSFL amount.

A COC-determined 1 year-acreage and yield projection may be used instead of an average 

for any of the following: 

• newly acquired farms 

• eligible perishable commodity being grown for the first time

• cases where disasters adversely affect the average production of the eligible perishable 

commodity. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-9 
Par. 50 

50 Determining Storage Need for Eligible Commodities Storing One Year of Production

(Continued)

B Eligible Perishable Commodities’ Acreage

A 3-year average acreage must be calculated for eligible perishable commodities’ storage 

from the producer’s share of up to the 3 most recent FSA-578’s.

See subparagraph 48 B for general information on calculation of acreage.

C Eligible Perishable Commodity Yields

COC’s:

• must determine a reasonable yield for each eligible perishable commodity included on 

CCC-185 for a cold storage facility 

• may review and use STC NAP yield determinations

• may use the following resources in determining a reasonable yield:

• ARS publications 

• detailed producer records

• Internet

• land-grant university located in the State or neighboring State

• NIFA in the State

• must use the same unit of measure for yields for each commodity. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-10 
Par. 50

50 Determining Storage Need for Eligible Commodities Storing One Year of Production

(Continued)

C Eligible Perishable Commodity Yields (Continued)

Contact the Cooperative Extension Service at the State’s land-grant university, or where 

relevant a local laboratory, to assist with reasonable yields and determining needed storage 

capacity for eligible perishable commodities in situations where that information cannot be 

reasonably furnished by the applicant.

Notes: State Offices can contact PSD for assistance, if they are unable to find a yield for a 

specific eligible fruit or vegetable.

Request National Office guidance when the producer’s operation is unusual or if the 

producer is seeking to increase the operation’s storage capacity to support a growing 

demand. DAFP review of the situation may result in waivers of certain FSFL 

provisions that restrict the producer’s eligibility for FSFL.

Agriculture departments in each State have identified specific units of measure for eligible 

perishable commodities sold in their State. To determine the unit of measure that applies to a 

specific commodity in a particular State, contact the State’s Department of Agriculture or 

check FSA’s NCT web site.

To access NCT, go to http://fsaintranet.sc.egov.usda.gov/fsa/applications.asp to access the 

FSA Intranet page. Under “Applications Directory”, CLICK “G-O”, scroll down to “NCT –

National Crop Table”, which is listed by crop years, and click on the applicable grouped 

years to display the NCT - Main Menu. Follow the search options to search by year, crop, 

and State.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-11
Par. 50

50 Determining Storage Need for Eligible Commodities Storing One Year of Production

(Continued)

D Formula for Eligible Perishable Commodity Cold Storage

The following must be determined before defining the size of refrigerated storage needed:

• volume of product to store

• produce containers (pallet bins, boxes, bulk)

• volume required per container

• aisle space needed (mechanical or manual operation)

• lateral and head space

• available site space.

Note: The area of a structure required to house eligible handling equipment and space 

required to move the storage containers are eligible, in addition to the cold storage 

space.

Example: The applicant stores pumpkins in 1,000 pound pallet boxes. Forklifts are 

required to move the pallets. Space for the driving lanes can be included in the 

cold storage request.

Kansas State University, Cooperative Extension Service publication MF-1039, titled 

“Storage Construction, Fruits & Vegetables”, may assist County Offices in determining the 

cold storage needed by an applicant.

Note: Because MF-1039 is no longer available online, State Offices may request a copy 

from PSD by e-mail to toni.williams@wdc.usda.gov.

Capacity of the proposed structure can be obtained from the manufacturer or contractor 

constructing the storage facility. The applicant should provide this information to the County 

Office.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-12
Par. 50 

50 Determining Storage Need for Eligible * * * Commodities Storing One Year of Production 

(Continued) 

D Formula for Eligible Perishable Commodity Cold Storage (Continued) 

See Exhibit 21 for a worksheet that can be used to compute the storage need requirement and 

capacity of a proposed structure for eligible perishable commodities. 

Applicants must show a need for the cold storage capacity as determined by the following 

formula and information in this paragraph. See Exhibit 21. 

Step Action 

1 Determine applicant entity and applicable farm operation from CCC-902. 

2 Determine the 3-year average acreage for each FSFL commodity as provided in 

subparagraph B. 

3 Multiply each average acreage times the applicable crop yield, determined to be 

reasonable by COC, and total the result. 

4 Deduct existing storage capacity, owned by the applicant, for the applicable crops. 

5 IF result from step 4 is... THEN...

greater than zero the applicant is eligible for the needed capacity, 

not to exceed the applicant’s proposed capacity or 

capacity to be upgraded.

less than zero notify the applicant that they are ineligible. 

Provide appeal rights according to 1-APP. 

greater than zero, but less than 

proposed storage capacity 

see paragraph 54. 

Note: The cold storage need requirement will be determined based on previous production 

for 1 year, unless a storage waiver is requested according to paragraph 53. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 3-13 
Par. 51 

51 Determining Storage Need for Honey

A Storage Need Determination

An applicant’s honey storage need can be determined with the assistance of NIFA, land-grant 

universities, ARS publications, and NASS reports. 

Applicable laws, regulations, construction codes, and zoning restrictions can affect the size of 

a facility and where it can be located. 

The following must be determined before defining the size of honey storage needed: 

 aisle space needed 

 honey containers 

 lateral and head space 

 volume of product to store 

 volume required per container 

 available site space. 

Note: Honey stored in jars (processed) is considered ineligible for FSFL storage. 

B Basic Information on Yield Calculation for Honey 

COC’s must determine whether the applicant’s production and yield from subparagraph C is 

reasonable. COC’s shall use the following resources in determining a reasonable yield: 

 ARS publications 

 land-grant university located in the State or neighboring State 

 NASS reports 

 NIFA in the State 

 detailed producer records for past 3 years. 

If the applicant participated with NAP, documentation may be provided to assist in 

determining the applicant’s honey production. 

County Offices may review the NASS Honey Annual Report that contains the number of 

colonies producing honey, yield per colony, honey production, average price, price by color 

class, and value by State in the U.S. 

The latest NASS Honey Annual Report is available at 

http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1191. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-14 
Par. 51 

51 Determining Storage Need for Honey (Continued)

B Basic Information on Yield Calculation for Honey (Continued)

The honey storage need requirement will be determined based on production for 1 year, and 

the honey storage need will be determined to allow the storage of 1 year’s honey production. 

If the capacity of the proposed structure can be obtained from the construction contractor of 

the honey storage facility, the applicant shall provide the information to the County Office. 

C Formula for Honey Storage 

Applicants must show a need for the honey storage capacity as determined by the following 

formula. 

Step Action

1 Determine the average of the applicant’s share of honey production for the most 

recent 3 years of honey requiring storage at the proposed location. 

Note: COC shall determine whether the average annual production is reasonable.

2 Determine honey storage space needed to store 1 year’s honey crop with the 

assistance of NIFA, land-grant university, or ARS publications.

3 Determine capacity of proposed structure using the worksheet in Exhibit 22, or 

other verifiable documentation. 

Note: All documentation used must be verifiable and kept in the FSFL folder.

4 Compare capacity of proposed honey facility with storage needed to determine 

whether applicant is eligible for additional storage.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-15 
Par 52 

52 Determining Storage Need for Maple Sap and Milk

A Maple Sap Storage Need Determination

The quality of maple sap can only be maintained for a limited period of time. Maple sap bulk 

tank facilities can extend this period of time, but in most cases a maple sap bulk tank facility 

will not maintain the quality of maple sap for longer than 30 calendar days.

The maple sap bulk tank storage need will be determined as based on production for 1 season 

divided by the average number of weeks of sap production. 

A useful web site to assist County Offices with determining maple sap bulk storage need can 

be found at http://www.uvm.edu/~pmrc/jones.pdf. 

To account for production expansion, and on a case-by-case basis, STC or COC may 

authorize no more than a 50 percent increase in the maple sap bulk tank facility. The 

producer must submit a written request and the increase must be documented in the STC or 

COC minutes.

Example: The maple sap starts running on February 16 and ends on March 30 which 

equals 42 days divided by 7 days = 6 weeks of maple sap production. The 

producer has 10,000 taps that will produce, on average 10.75 gallons of maple 

sap through the season. 

10,000 x 10.75 = 107,500 gallons of maple sap divided by 6 weeks producing 

an average of 17,918 gallons of maple sap per week in storage x 1.5 percent = 

maximum eligible storage tank for loan would have a capacity no greater than 

26,877 gallons. 

Follow guidance in paragraph 51 for maple sap storage need calculations. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-16 
Par 52 

52 Determining Storage Need for Maple Sap and Milk (Continued) 

B Milk Storage Need Determination

Applicants must show the need for the milk bulk tank capacity as determined by the 

following formula. Applicants may be required to provide verifiable records for COC to 

determine milk production for the requested storage. See Exhibit 23 for additional guidance. 

Step Action 

1 The applicant may provide milk quantity from the highest milk shipment receipt 

within the past 24 months. 

Note: COC will determine if the milk pick up is daily or intermittent.

2 *--COC will determine the milk produced on an individual day and multiply results 

by 3. For every other day milk pick-up, multiply results by 1.5.--* 

3 Subtract the existing milk storage from the result of Step 2 to determine additional 

milk storage needed. 

Note: If the applicant has existing milk bulk tank storage, the storage must be 

subtracted from the milk storage need unless the new bulk tank is being 

purchased to replace the existing milk bulk tank. 

COC’s may: 

 determine if the applicant’s production/yield for milk is reasonable using guidance above 

 use practical knowledge of the producer’s dairy business when determining a reasonable 

yield. 

A COC determined reasonable yield based on the daily milk production per animal and the 

average number of animals milked per day may be used to determine the average for any of 

the following: 

 newly acquired farms 

 eligible milk being produced for the first time 

 cases where disasters adversely affect the average production. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 3-17 
Par 52

52 Determining Storage Need for Maple Sap and Milk (Continued) 

B Milk Storage Need Determination (Continued)

The capacity of the milk bulk tank can be obtained from the manufacturer of the bulk tank. 

The applicant shall provide this information to the County Office, if requested. 

When necessary, the milk bulk tank can be upgraded to the next available tank size from the 

manufacturer. 

Example: The applicant provides a milk shipment indicating the need of a bulk milk tank for 

20,000 lbs. of milk production, or 2,325 gallons. The next available bulk milk 

tank size is 2,500 gallons, or 21,500 lbs. Therefore, the upgrade for the bulk milk 

tank size of 2,500 gallons is eligible. 

Note: The above example provides the industry average conversion of 8.6 lbs. per gallon. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-18 
Par. 53

53 Storage Need Waivers

A Storage Need Waiver for All Commodities, Except for Eligible Perishable Commodities

The provisions in this subparagraph apply to producers who have not previously filed 

FSA-578’s.

STC’s may authorize:

• the acceptance of actual yield and production records to determine a 3-year average

• on a case-by-case basis, a waiver of late-filed fees when accepting late-filed FSA-578’s

for FSFL requests of $100,000 or less.

Notes: The producer must request the storage need waiver in writing. The waiver 

determination must be maintained in the FSFL folder and documented in STC or 

COC meeting minutes.

STC has authority to establish a more restrictive policy and may redelegate authority 

to COC only for provisions provided in this subparagraph.

County Offices may request additional information from the producer to verify the reported 

yield and production.

Notes: See subparagraph B for eligible perishable commodity storage need waiver 

provisions.

In questionable situations, State Offices shall contact Toni Williams by e-mail to 

toni.williams@wdc.usda.gov.

B Storage Need Waiver for Eligible Perishable Commodity Producers

The provisions provided in subparagraph A may apply to eligible perishable commodity

producers with both of the following:

• an aggregate outstanding FSFL balance of $100,000 or less

• a minimum of 3 different types of eligible perishable commodities.

Note: The 3 different eligible perishable commodities may be butter, grapes, and oranges.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3-19
Par. 54

54 Ineligible Space and Larger Capacity

A Ineligible Space in a Flat Storage Structure

When a storage structure has space that is not used primarily for eligible commodity storage, 

such as office or marketing space, compute the maximum FSFL amount, as follows.

Step Action

1 Determine a factor for eligible space by dividing the square footage that is primarily 

used for eligible commodity storage by the total square footage of the building.

2 Determine the total net cost of the building.

3 Multiply the result from step 2 times .85 and multiply that result times the factor 

from step 1.

Example: Applicant proposes to build a 75,000 square foot flat storage building. Net cost is 

$75,000. Eligible storage space is 74,000 square feet. Factor for eligible space is 

.99 (74,000 divided by 75,000). The maximum FSFL amount is $63,112.50 

($75,000 times .85 times .99).

B Larger Capacity Than Needed

When a storage structure has a larger capacity than the applicant’s needed capacity, the net 

cost shall be prorated and the maximum FSFL amount computed as follows.

Step Action

1 Divide eligible net cost by the bu. of capacity.

2 Multiply per bu. cost times bu. of capacity for which the applicant is eligible.

3 Multiply result times .85.

Example: Applicant proposes to build a 60,000 bu. storage bin. Net cost is $75,000. 

Eligible storage need is 50,000 bu. Net cost per bu. is $1.25 ($75,000 divided by 

60,000 bu.). Eligible net cost is $62,500 ($1.25 times 50,000 bu.). Maximum 

FSFL amount is $53,125 ($62,500 times .85).

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-20
Par. 55

*--55 Storage Need Requirements for Wool

A Determining the Wool Storage Need

For a person or legal entity to be considered eligible for a wool FSFL, COC must determine 

the person or legal entity own and maintain the sheep for 30 calendar days or more before 

date of shearing. 

Applicants must show a need for the wool capacity as determined by the following formula 

and information in this paragraph. 

Wool storage need is determined based on production for 2 years. County Offices will 

determine the need for wool storage by using either of the following: 

• the sheep owner’s share of actual wool yields and production records to determine a 3-

year average 

• records of sales, volume sold, or other business records that can be extrapolated to 

demonstrate the storage need but not limited to production shares as part of a 

community-supported agriculture business. 

A COC-determined reasonable 2-year average and yield projection may be used instead of an 

average for any the following: 

• newly acquired farms 

• wool being produced for the first time 

• cases where disasters adversely affect the average production. 

Note: In most instances, using the sheep owner’s actual yield and production records 

provides better information for calculating the sheep owner’s wool storage need. 

COC’s will:

• determine whether the applicant's production/yield for wool is reasonable using guidance 

in this subparagraph 

• use actual factual knowledge of the sheep owner’s farming business when determining a 

reasonable yield.

B Determining the Capacity of the Wool Structure

The capacity of the proposed structure can be obtained from the manufacturer of the storage 

facility for wool. If requested, the applicant must provide this information to the County 

Office.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-21
Par. 56

*--56 Storage Need Requirements for Hemp

A Determining the Hemp Storage Need 

For a producer to be considered eligible for a hemp FSFL, COC must determine that the 

producer owns or has leased property with readily identifiable boundaries. 

Applicants must show a need for the hemp capacity as determined by the following formula 

and information in this paragraph. The conversion factor for converting from net cubic feet 

to cwt is .352.

The hemp storage need will be determined based on production for 2 years. 

STC’s have the authority to: 

• establish a more restrictive policy and may redelegate authority to COC’s only for 

provisions provided in this subparagraph

• approve a waiver to self-certify to the hemp storage capacity need on CCC-185 for 

FSFL’s with an aggregate outstanding balance equal to $50,000 or less, on a Statewide 

basis, not a case-by-case basis

Note: According to 2-CP, subparagraph 728 A, State and County Offices may spot check 

any producer not identified on the National producer selection list if there is reason to 

question the producer’s compliance with any program provisions. 

County Offices may determine the need for hemp storage by using any of the following: 

• producer’s share of up to the 3 most recent FSA-578’s 

• verifiable information to determine a 3-year average that may include, but is not limited 

to:

• actual yields 

• actual production records 

• records of sales, volume sold, or other business records that can be extrapolated to 

demonstrate the storage need

• production shares as part of a community-supported agriculture business.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-22
Par. 56

*--56 Storage Need Requirements for Hemp (Continued)

A Determining the Hemp Storage Need (Continued)

A COC-determined reasonable 1-year acreage and yield projection may be used instead of an 

average for any the following: 

• newly acquired farms 

• eligible commodity being produced for the first time 

• cases where disasters adversely affect the average production. 

B Determining Reasonable Hemp Production/Yield 

COC’s: 

• must determine a reasonable yield for hemp

• may review and use STC NAP yield determinations

• may use the following resources in determining a reasonable yield: 

• ARS publications 

• detailed producer records 

• Internet 

• land-grant university located in the State or neighboring State 

• NIFA in the State. 

County Office staff may contact the Cooperative Extension Service at State’s land-grant 

university, or a local laboratory where relevant, to assist with reasonable yields and 

determining needed storage capacity for hemp in situations where that information cannot be 

reasonably provided by the applicant. 

State Offices can contact PSD for assistance if they are unable to find a yield for hemp. 

Requests for PSD guidance are encouraged when the hemp producer’s operation is unusual 

or if the applicant is seeking to increase the operation’s storage capacity to support a growing 

demand. 

PSD review of the situation may result in waivers of certain FSFL provisions that restrict the 

producer’s eligibility for FSFL.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-23
Par. 56

*--56 Storage Need Requirements for Hemp (Continued)

B Determining Reasonable Hemp Production/Yield 

COC’s may: 

• determine whether the applicant’s production/yield for hemp is reasonable using 

guidance in subparagraph A 

• use practical knowledge of the producer’s farming business when determining a 

reasonable yield.

C Determining Capacity of Hemp Structure

Capacity of the proposed structure can be obtained from the manufacturer of the hemp 

storage facility. If requested, the applicant will provide this information to the County 

Office.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3-24
Par. 57

Part 4 FSFL Policies and Application Processing 

Section 1 FSFL-Making Policies

57 Partial and Final Disbursement Options

A FSFL Disbursement Policy

 *--The 2008 Farm Bill Section 1614 (e) provides authority for 1 partial and 1 final principal 

disbursement so that borrowers can facilitate purchasing and constructing a storage facility, 

acquiring drying and handling equipment, and acquiring storage and handling trucks. A--*

partial disbursement is not required.

At the time of application, in CCC-185, item 3D, applicants indicate whether they are 

requesting 1 or 2 disbursements. National Office program manager approval is required to 

change this election after FSFL has been approved in DLS.

B Partial Disbursements

One partial disbursement:

• may be requested by the borrower when a portion of the FSFL project has been acquired 

or completed

• will be commensurate with the amount of the approved FSFL project that has been

completed, supported by documentation and inspected, if applicable

• can be disbursed up to the maximum amount of 50 percent of the projected and approved

total FSFL amount, not to exceed $250,000.

If the applicant requests the partial disbursement:

• there will be two FSFL’s with 2 installment payments due each year

• a separate CCC-186 and closing in DLS will be required for the partial and final FSFL 

amounts

• only 1 manual CCC-185 will be required for the partial and final FSFL amounts.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-1
Par. 57

57 Partial and Final Disbursement Options (Continued)

B Partial Disbursements (Continued)

County Offices shall:

• assist producers with completing 1 CCC-185 for the total FSFL amount requested

• enter the partial and final FSFL request in DLS following instructions in 2-FSFL, 

paragraph 31

• see paragraph 187 for FSFL security requirements for FSFL’s with partial and final 

disbursements

• see paragraph 58 for application fees for FSFL’s with partial and final disbursements

• ensure all CCC-185D conditions are met before partial disbursements are disbursed

• ensure a CCC-186 is properly signed and dated for the partial disbursement.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-2
Par. 58

58 FSFL Fees

A County Office Action

County Offices shall:

• charge FSFL applicants a nonrefundable application fee of $100 per borrower per FSFL

• collect the application fee when CCC-185 is submitted.

Note: The application fee is necessary to cover the costs to CCC for making FSFL’s. 

These costs include the following:

• credit reports

• lien searches

• UCC-1 filings.

If in CCC-185, item 3D the applicant elects the partial and final disbursement option, only 

1 application fee is required even though there will be 2 separate FSFL’s disbursed.

A spouse is not required to pay a separate FSFL application fee if required by State law to 

sign the FSFL security documents, and is not an eligible producer on a farm whose 

production is used to determine FSFL eligibility.

The application fee for assumptions must be collected at the time the assumption is 

requested.

B Multiple Borrowers

A husband and wife would be considered 2 borrowers and each charged an application fee if 

both are receiving farm program payments on the farm whose production is used to 

determine FSFL eligibility.

Note: If a spouse does not receive a share of the farm program payment and is only signing 

CCC-186 because of a State or STC requirement, only 1 fee is required.

Farming entities, excluding joint ventures that are paid under one TIN, will be considered 

1 applicant and charged 1 application fee.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-3
Par. 58

58 FSFL Fees (Continued)

C Fees for Filing and Recording UCC’s, Instruments, and Other Transactions

 *--Filing and recording fees must be processed using DLS and shall be paid according to the

following.

IF the transaction is for...

THEN the fee 

is paid by...

a collateral lien search (includes lien searches determined necessary 

by OGC for underlying real estate)--*

CCC.

a credit report

fees charged by a local or State municipality for expenses associated 

with a real estate lien search for CCC-297 (Exhibit 68) purposes

filing UCC-1 

filing UCC-1 as a fixture filing 

continuation of UCC-1 and UCC-1 as a fixture filing using UCC-3

motor vehicle lien search, lien filing fee, and recording fees

all other instrument filing and recording transactions related to a lien 

on real estate used to secure FSFL

the borrower.

fees for motor vehicle emission inspection and other required state 

inspections

attorney fees related to a lien on real estate used to secure FSFL

fees charged by superior lienholders to subordinate or release 

collateral to CCC

filing a discharge of CCC-297

filing a release or discharge of a real estate lien, such as a mortgage

filing and recording a subordination agreement related to a lien on 

real estate used to secure FSFL

real estate lien, deed, or title search related to a lien on real estate used 

to secure FSFL

recording CCC-297

terminating UCC-1 using UCC-3

See paragraph 302 for assistance when processing and ordering checks for filing fees as 

displayed in this table.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-4
Par. 59

59 FSFL Microloan Provisions

A FSFL Microloan Amount

The maximum amount of an FSFL microloan shall not exceed an aggregate outstanding

FSFL balance of $50,000. 

 *--If a producer submits an FSFL microloan request for $30,000, and subsequently, submits an

FSFL microloan request for $40,000, and the $40,000 FSFL microloan is disbursed before 

the $30,000 FSFL microloan request, the producer is only eligible for an FSFL microloan of 

no more than $10,000. 

If the producer wants to proceed with the $30,000 FSFL request, the $30,000 FSFL 

microloan request must be deleted in DLS and re-entered in DLS as an FSFL regular loan. 

The application fee provided for the $30,000 FSFL microloan can be used for the FSFL 

regular loan.--*

State and County Offices are required to verify in DLS, the aggregate outstanding FSFL 

balance does not exceed $50,000 at the time of loan approval and disbursement. 

A nonrefundable $100 application fee per borrower is required per FSFL microloan request. 

A financial analysis is required for all FSFL microloan requests except when the loan will be 

secured with an Irrevocable Letter of Credit.

 *--A severance agreement is not required from the holder of any prior lien on the real estate 

parcel on which the facility is located for a FSFL microloan.--*

Partial and final disbursements are applicable to an FSFL microloan.

The producer must select on CCC-185, item 3 B whether the FSFL request is for an FSFL 

microloan. State and County Offices must not assume the request is an FSFL microloan. 

Refer to paragraph 60 for additional information on loan amount. The variances for an FSFL 

microloan versus regular FSFL’s are the following:

• down payment requirement of 5 percent

• availability to self-certify to the storage need

• the aggregate outstanding loan amount threshold of $50,000.00.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-5
Par. 59

59 FSFL Microloan Provisions (Continued)

B FSFL Microloan Terms

The FSFL microloan shall have a maximum term of 3, 5, or 7 years for new and 3 or 5 years

for used storage structures, equipment and storage and handling trucks, from the date of the

execution of CCC-186.

STC has authority to establish policy when determining whether new and used equipment

may be listed on one FSFL request or separate requests.

The STC authority must be documented in the STC regular meeting minutes.

Example: John Clark submitted one FSFL request in the amount of $46,000, for a new

portable grain vacuum and used batch dryer. The maximum loan term for the 

new portable grain vacuum is 7 years. The maximum loan term for the used 

batch dryer is 5 years. Because both eligible FSFL components are on the 

same FSFL request, the maximum loan term is 5 years (using the maximum 

loan term for used equipment).

Notes: Based on authorization provided to STC’s in this subparagraph for determining if new

and used equipment can be included on one FSFL request, the loan term must be 

limited to the eligible FSFL component with the lowest term.

The STC authorization and example also applies to a regular FSFL (maximum loan

amount $500,000) when a new and used storage structure, handling equipment or

storage and handling truck FSFL request is received.

All FSFL-financed equipment, structures and storage and handling trucks (new or used) must

have a useful life for at least the FSFL term.

An FSFL microloan should be made available to producers of all commodities, provided that

eligibility requirements are satisfied.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-6
Par. 59 

59 FSFL Microloan Provisions (Continued) 

C Down Payment 

A minimum down payment for an FSFL microloan shall be: 

 5 percent of the eligible net costs 

 made by the applicant to the contractor, seller, supplier, or vendor. 

Example: The producer’s FSFL microloan request was approved for $50,000. Supported by 

a dated sales contract, the net cost of the equipment included on the FSFL 

microloan request is $53,000. The minimum down payment of 5 percent of 

$53,000, is $2,650. Although, the total net cost of the equipment is $53,000, and 

the dated sales contract indicates $2,650 was paid to the supplier, the FSFL 

microloan maximum amount of $50,000, will be disbursed to the producer. The 

difference of $350 must be paid by the producer at or prior to closing. 

An FSFL disbursement calculator for the microloan must be completed and filed in the 

producer’s FSFL folder before the FSFL microloan is disbursed. 

See paragraph 61 for other provisions of down payment requirements. 

D Monthly Interest Rate 

The interest rate for FSFL microloans are the same as the interest rate for a regular FSFL. 

See paragraph 62. 

E Processing Microloans 

See paragraph 47 for guidance on self-certification by the applicant. All other processing 

and security requirements for FSFL microloans are the same as a regular FSFL. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-7 
 Par. 60 

60 FSFL Amount and Terms (Except Microloan) 

A Maximum Amount 

The maximum amount of each FSFL shall not exceed $500,000. A borrower may have 

multiple FSFL’s. Each separate FSFL must meet all eligibility, financial and security 

requirements for FSFL. 

Only one FSFL is allowed on a stand-alone structure. Therefore, if 2 adjoined storage 

structures are built, only one FSFL is authorized for the eligible components and a lien will 

be placed on the adjoined structures. 

Note: See Exhibit 2 for a definition and example of stand-alone structure. 

B Determining FSFL Amount 

The principal amount of any FSFL shall be 85 percent or less of the net cost of the 

applicant’s needed storage, drying and/or handling equipment, not to exceed $500,000 for 

each FSFL. 

 *--Each borrower signing CCC-186 is jointly and severally liable for the entire FSFL 

amount.

Grants and loans from any Federal Government Agency for the same purpose as the FSFL 

loan shall be subtracted from the FSFL amount before disbursement. See paragraph 63.--* 

C Net Cost 

[7 CFR 1436.9] The cost on which FSFL shall be based is the net cost of the following: 

*--items listed in paragraphs 36 through 43--*

 accessories 

 eligible facility 

 services to the applicant after discounts and rebates. 

Note: STC may establish a maximum per bu. or per unit of measure for net cost. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 4-8 
Par. 60

60 FSFL Amount and Terms (Except Microloan) (Continued)

D Maximum Term

[7 CFR 1436.7] The FSFL maximum term shall be 3, 5, 7, 10, or 12 years from the date of 

the execution of CCC-186 based on total FSFL principal as follows if:

• $100,000 or less, 3, 5, 7-year FSFL term only

• $100,000.01 to $250,000, 3, 5, 7, or 10-year FSFL term

• $250,000.01 to $500,000, 3, 5, 7, 10, or 12-year FSFL term.

Used storage structures, equipment, and storage and handling trucks shall have a maximum 

term of 3 or 5 years from the date of the execution of CCC-186. 

The term must be specified when CCC-185 is submitted, because the required financial 

analysis must take into account the annual installment payment amount.

Applicants may select the term in CCC-185, item 3C based on the amount requested.

After FSFL is approved in DLS, the term or disbursement type cannot be changed unless the 

final FSFL amount is changed because the project cost was more than estimated and an 

increase is requested by the applicant. A decrease in the FSFL amount may be necessary, if 

after reviewing acceptable documents, such as, but not limited to, receipts and/or sales 

invoices and it is determined the FSFL amount should be decreased.

Based on whether the FSFL amount will be decreased or increased, a different term category 

may be required. For questionable situations, contact the National Office.

STC has authority to establish policy when determining whether new and used equipment

may be included on one FSFL request or separate requests. If the STC approves the use of 

one request, the loan term must be limited to the eligible FSFL component with the lowest

term.

See Exhibit 24 for a quick guide on loan types, down payments, maximum loan amount and 

terms.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-9
Par. 61

61 Down Payment

A Minimum Down Payment

[7 CFR 1436.10] A minimum down payment shall be:

• 15 percent of the eligible net costs

• the difference between the net cost of the storage facility, storage truck and/or storage 

handling and process equipment and the amount of FSFL determined by paragraph 60

• made by the FSFL applicant to the contractor, dealer, seller, supplier or vendor before

the final FSFL disbursement.

Notes: See subparagraph 59 C for the minimum down payment requirement applicable to 

FSFL microloan and provisions.

 *--An FSFL disbursement calculator will be completed in DLS before the FSFL is 

disbursed and the calculator must be filed in the producer’s FSFL folder.--* 

B Allowances

The down payment may be the proceeds of a loan from a nongovernment source. FSA 

employees with loan approval authority shall ensure that down payments obtained from 

nongovernment loans are accounted for when determining the applicant’s ability of repaying 

FSFL.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-10
Par. 61

61 Down Payment (Continued)

C Exclusions

The down payment shall not include any of the following:

• deferred payment

●*--store credit or discount--*

• grant or loan proceeds from any Government Agency (paragraph 63)

• post-dated check

• promissory note to the supplier or contractor

• rebate

●*--trade-in value.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-11
Par. 62

62 Interest Rate

A FSFL Interest Rate

[7 CFR 1436.12] The interest rate for FSFL shall be the rate:

• equivalent to Treasury securities of a comparable term in effect during the month of the 

initial FSFL approval by STC or COC, or FSA delegated official for loans with an 

aggregate outstanding balance of $25,000.00, or less

• in effect for the FSFL term

• the same for a partial and final disbursement.

B Monthly Announcements

Interest rates may be different for the 3, 5, 7, 10, or 12-year terms and will be:

• updated monthly

• published on FSA’s Internet web site

• posted in County Offices

• automatically downloaded to the FSFL interest rate table in DLS.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-12
Par. 63 

63 FSFL Policy on Other Grants and Loans 

A Duplication and Reporting of Benefits 

In general, and subject to program regulations and statutory authority, programs administered 

by FSA do not allow for duplicating benefits. 

In an effort to ensure that there is no possible duplication of benefits, all financial assistance 

from all sources must be identified before the partial or final FSFL is disbursed. 

B FSFL’s 

For FSFL purposes, Federal Government grants or loans must be disclosed to the County 

Office. 

The following table provides additional guidance. 

IF the County Office is ready to 

make the final FSFL disbursement 

and the borrower... THEN the... 

has received a grant or loan from 

another Federal Government Agency 

for the same structure or equipment, for 

the same or overlapping time period 

amount of the grant or loan must be subtracted 

from the total eligible cost of FSFL before 

disbursement. 

Note: If the grant or loan was included in the 

FSFL amount, this would be a duplication 

of benefits and not allowed under FSA 

programs. 

has applied for or has been approved 

for, but not yet received, a grant or loan 

from another Federal Government 

Agency for the same structure or 

equipment, for the same or overlapping 

time period 

amount of the grant or loan may be included in 

FSFL; however, the producer must agree to 

repay the grant or loan amount towards FSFL 

when it is received. 

uses a nongovernment loan for the 

required downpayment for FSFL 

County Office shall ensure that the loan was 

accounted for when determining the producer’s 

ability to repay FSFL. 

The above policies include federal grants and loan funds. The STC, on a statewide basis, has 

authorization to determine whether state grants and loan funds should be subtracted from the 

total FSFL eligible costs before loan disbursement. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-13 
Par. 63 

63 FSFL Policy on Other Grants and Loans (Continued) 

B FSFL’s (Continued) 

Notes: If there is a possible duplication of benefits on a previously disbursed FSFL, County 

Offices shall: 

*--follow paragraph 198 for the applicable procedure for notification and demand--*

letters 

 prepare and send all FSFL notification and demand letters. 

NRRS does not prepare notification and demand letters for FSFL’s until FSFL 

collateral has been liquidated. 

Example: The total cost of an FSFL structure is $100,000. The producer receives a REAP 

grant for $25,000 for the same structure for the same or overlapping time period. 

The REAP grant is subtracted from the total cost of the structure. The producer is 

required to contribute at least 15 percent, or in this example $11,250, of their 

own money to the project. The maximum amount the producer can receive for 

FSFL is $63,750, determined as follows. 

$100,000 Total cost of structure. 

- 25,000 REAP grant received for the same structure. 

$ 75,000 Maximum FSFL amount before required down payment. 

- 11,250 Required 15 percent down payment. 

$ 63,750 Total eligible amount allowable for FSFL. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 4-14 
Par. 63

63 FSFL Policy on Other Grants and Loans (Continued)

C Applicable Grant and Loan Amounts

There may be costs associated with securing a Federal Government grant or loan. The 

following are examples of eligible costs, with documentation, that may be subtracted from 

the grant or loan amount to be applied to FSFL.

• Grant writer fee. Grant writers are being hired to write grant proposals for many 

Government grants. The fee charged by the grant writer is either a flat fee or a 

percentage of the final grant.

• Energy audits. REAP grants and loan applicants may be required to provide and pay for 

an energy audit for their proposed project. If a REAP grant or loan is approved, the cost 

of the energy audit may be subtracted from FSFL.

Example: An approved FSFL applicant has hired a grant writer to prepare the grant proposal 

for a $250,000 grain storage facility. The fee charged by the grant writer is 

10 percent of the final grant award. The REAP grant is awarded for $62,500. 

The grant recipient owes the grant writer $6,250. The applicable grant amount for 

FSFL purposes is $56,250. This amount must be subtracted from the total cost of 

the structure, as follows.

$250,000.00 Total cost of structure.

- 56,250.00 REAP grant received less the grant writer fee.

$193,750.00 Maximum FSFL amount before required down payment.

- 29,062.50 Required 15 percent down payment.

$164,687.50 Total eligible amount allowable for FSFL

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-15
Par. 64

64 Lobbying Activity Provisions

A Applicability

Lobbying disclosure requirements apply to applicants and recipients of FSFL proceeds 

exceeding $150,000.

B Filing Forms

FSFL recipients must file the form specified in this table for each FSFL exceeding $150,000.

IF monies received have... THEN...

not or will not be used to lobby 

or otherwise influence the 

actions of a Federal official 

about a particular FSFL

CCC-674 is not required because CCC-186, item 11 

contains lobbying disclosure certification language. FSFL 

applicants certify to compliance when signing CCC-186.

or will be used to lobby or 

otherwise influence the actions 

of a Federal official about a 

particular FSFL

file SF-LLL (subparagraph C). CCC-674 is not required

because CCC-186, item 11 contains lobbying disclosure 

certification language. FSFL applicants certify to 

compliance when signing CCC-186.

Note: File SF-LLL-A (subparagraph D), if applicable.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-16
Par. 64

64 Lobbying Activity Provisions (Continued)

C Example of SF-LLL

The following is an example of SF-LLL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-17
Par. 64

64 Lobbying Activity Provisions (Continued)

C Example of SF-LLL (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-18
Par. 64

64 Lobbying Activity Provisions (Continued)

D Example of SF-LLL-A

The following is an example of SF-LLL-A.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-19
Par. 64

64 Lobbying Activity Provisions (Continued)

E County Office Action

County Offices shall follow procedures in this table each time CCC-185 exceeding $150,000 

is submitted and the borrower will use FSFL to lobby or otherwise influence the actions of a 

Federal official according to subparagraph B.

Step Action

1 Provide the producer a copy of SF-LLL and SF-LLL-A with instructions to complete 

and return completed SF-LLL and SF-LLL-A, as applicable, to the County Office.

2 Disburse FSFL after the producer returns the completed SF-LLL and SF-LLL-A, as 

applicable, to the County Office.

3 File the original completed SF-LLL and SF-LLL-A, as applicable, in the FSFL folder 

in the County Office.

Examples: A producer is approved for FSFL totaling $160,000. FSFL partial 

disbursement of $75,000 is made. The final disbursement of $85,000 cannot

be made until SF-LLL for the final disbursement is received. Both FSFL 

numbers shall be referenced.

A producer is approved for FSFL totaling $400,000. FSFL’s for a partial 

disbursement of $200,000 and a final disbursement of $200,000 cannot be 

made until SF-LLL is received for each disbursement.

F Assistance

For situations not covered in this paragraph, County Offices shall contact PSD through the 

State Office’s Price Support Specialist for additional assistance.

65-67 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-20

(through 4-26)
Par. 68

Section 2 Items Needed for FSFL Application

68 FSFL Availability

A Signup

CCC-185 may be obtained from any of the following:

• any FSA office

• FSA’s employee forms web site at https://inside.fsa.usda.gov/

• eForms’s web site at https://www.sc.egov.usda.gov/.

See Exhibit 28 for detailed information on completing CCC-185.

Electronic CCC-185’s may be accepted from applicants that have Level 2 eAuthentication 

credentials. See https://www.eauth.usda.gov/MainPages/eauthsitemap.aspx for guidance 

on obtaining Level 2 eAuthentication credentials.

FAXed CCC-185’s are acceptable; however, an original signature must be obtained on 

CCC-185 before FSFL approval.

Note: The new or used storage, drying and handling equipment and/or storage and handling 

truck must not have been installed or purchased before the FSFL request (CCC-185) 

was submitted in the County Office, FSA-850 completed and CCC-185D approval. 

[7 CFR 1436.4] County Offices shall accept CCC-185’s and supporting documents:

• anytime during normal office hours

• to ensure that eligibility requirements can be determined timely before STC or COC 

meeting at which CCC-185 and CCC-185D will be reviewed and approved or 

disapproved.

CCC-185 should always be accepted regardless of the time of month STC or COC will meet.

 *--Applicants in an active bankruptcy must receive approval through the bankruptcy court to 

obtain new debt. The State Office must consult with OGC to ensure the court approval was 

obtained before FSFL approval.--*

*--Notes: FSFL application processing, including environmental review can proceed while 

waiting for court approval.

The communication with the bankruptcy trustee and OGC must be filed in the 

producer’s FSFL folder.--*

Manual CCC-185’s must be typed or completed using black or blue ink.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-27
Par. 68

68 FSFL Availability (Continued)

B Where to Apply

CCC-185’s from eligible producers for FSFL’s for all commodities shall be submitted to the 

administrative County Office that maintains the applicant’s farm records of the farm or farms 

to which CCC-185 applies.

If some or all of the land does not have farm records established, CCC-185 must be 

submitted to the County Office that services the county where the facility or producer’s 

farming operation is located unless STC has established other guidelines.

C Producer Action Before CCC-185D Approval

FSFL applicants, who authorize delivery, site preparation, or construction actions without an 

approved CCC-185D, do so at their own risk and without creating any liability on CCC’s 

behalf.

State and County Offices must ensure that an environmental review was completed before

the producer authorized delivery of equipment, site preparation, or foundation construction. 

See paragraphs 11, 109, 110, and 1-EQ for additional information.

69 Obtaining Forms and Filing CCC-185’s

A Obtaining Forms

Applicants may:

• obtain forms from the web sites provided in paragraph 68

• provide additional CCC-185 information to the County Office by fax, e-mail, hand 

delivery, or mail. If a document requires a signature, the original signature must be on 

file before FSFL approval.

Note: Electronic CCC-185’s may be accepted from applicants that have Level 2 

eAuthentication credentials. FAXed CCC-185’s are acceptable; however, an original 

signature must be obtained on CCC-185 before the FSFL is processed.

B Items Needed for an FSFL Application Package

The following forms and supporting documentation are needed for an FSFL application 

package and must be filed in the FSFL folder:

• CCC-185

● environmental review documents as provided by 1-EQ including Exhibit 15

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-28
Par. 69

69 Obtaining Forms and Filing CCC-185’s (Continued)

B Items Needed for an FSFL Application Package (Continued)

• storage capacity calculator (except for FSFL requests that are only for storage and 

handling equipment and/or storage and handling truck or requests for improvements to 

existing structures without increasing storage capacity of existing storage structure)

• AD-1026

• CCC-10, see paragraph 141 for detailed information

●*--CCC-901 or CCC-902, if available for other farm program purposes--*

• FSA-2004, if applicable, see paragraph 82 for additional information

• FSA-2037 or similar financial statement form, see paragraph 85

• FSA-2038 or similar projected income and expense form, see paragraph 85

• documentation to support proposed FSFL structure plan, if applicable, as follows:

• building plan, specifications, or detailed drawing

• cost estimates

• dimensions of proposed structure

• purchase orders

• legal description of the parcel where the facility will be placed if the loan request 

includes a storage structure that will be permanently affixed to the real estate

• legal description of all properties offered as additional security, if applicable

• plat map or aerial photograph with the structure’s location marked

• a contract with a buyer, if submitting a renewable biomass CCC-185

• planting history if not on file, see paragraph 48

• written authorization of access to the proposed storage site if the structure is being placed 

on real estate not owned by the applicant

• valid State-issued driver’s license or State-issued ID card, if required by State law for 

UCC filing information

• application fee according to subparagraph 58 A

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-29
Par. 69

69 Obtaining Forms and Filing CCC-185’s (Continued)

B Items Needed for an FSFL Application Package (Continued)

• proof of crop insurance or other program coverage according to paragraph 96 

• letter of intent from financial institution about Irrevocable Letter of Credit according to 

subparagraph 121 E, Exhibit 69 if applicable.

Note: If the applicant intends to utilize an Irrevocable Letter of Credit as security for the 

entire FSFL, the letter of intent from the financial institution should be received 

with the application package. This will allow the County Office to waive the 

financial review; in addition, the County Office will not initiate actions pertaining 

to perfecting security liens unless required by STC, statewide, not on a case by 

case basis. Otherwise, a financial analysis is required, and the Irrevocable Letter 

of Credit must be provided at the time of loan closing. 

• for an entity applicant, entity documents documenting the following:

• list of entity members and the number of shares and percentage of ownership

• balance sheet and projected income and expense information for members with the 

greatest share according to subparagraph 85 G

• authorization to incur debt

• parties required to sign security and debt instruments.

 *--For FSFL requests with an aggregate outstanding balance of $50,000 or less, a financial 

analysis for entity members with the greatest shares is not required unless STC 

determines it is necessary on a Statewide basis and not on a case-by-case basis.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-30
Par. 69 

69 Obtaining Forms and Filing CCC-185’s (Continued) 

C Accepting CCC-185’s 

For CCC-185’s not supported by existing farm records, the applicant must provide all the 

documentation required to the County Office to determine if the applicant is eligible.

STC or COC is responsible for taking appropriate action on CCC-185 and CCC-185D. 

County Offices must:

• assist the applicant in completing CCC-185, if necessary, for the entire FSFL amount and 

obtain the applicant’s signature 

• collect the application fee when the completed CCC-185 is submitted and deposit 

immediately according to subparagraph 75 B 

• discuss key program provisions with the applicant

●*--promptly hold an environmental review kick-off meeting to complete 1-EQ, Exhibit 15 

to formally caution applicants that they must not take any actions with respect to their 

proposed actions during the period of environmental review and processing that could 

have a potential adverse impact on the environment or limit the range of alternatives.--*

Note: Ensure that CCC-185 is typed or completed in black or blue ink. 

70-73 (Reserved)

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 4-31 

(through 4-46) 
.
Par. 74

Section 3 Processing CCC-185’s, Checklists, and FSFL Folders

74 Completing CCC-195, CCC-195A, and CCC-195B

A Using CCC-195’s, CCC-195A’s, and/or CCC-195B’s

CCC-195, CCC-195A, and CCC-195B were developed to assist State and County Offices to 

avoid the types of errors that have been found by COR reviews. See Exhibit:

• 29 for an example of CCC-195

• 30 for an example of CCC-195A

• 31 for an example of CCC-195B.

CCC-195 is required to be completed for all FSFL’s. In addition to CCC-195, CCC-195A 

(real estate security) or CCC-195B (no real estate security) will be used after it is determined 

whether the FSFL requires additional security.

It is not the intent of CCC-195, CCC-195A, or CCC-195B to supersede or replace procedure. 

County Offices are required to use CCC-195, CCC-195A, and CCC-195B, as applicable, as 

reminders of the most frequently found errors when completing FSFL’s.

B State Office Modifications

State Offices shall, only as necessary to incorporate individual State laws, modify CCC-195, 

CCC-195A, and CCC-195B for State usage by using the blank lines provided on CCC-195, 

CCC-195A, and CCC-195B, or by further editing the document in Microsoft Word.

Important: SED’s may authorize the State Office to modify FSFL CCC-195 checklists to 

incorporate individual State laws. National Office concurrence is not

required. 

Note: The current version of CCC-195, CCC-195A, and CCC-195B are available at 

https://intranet.fsa.usda.gov/dam/ffasforms/forms.html.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-47
Par. 74

74 Completing CCC-195, CCC-195A, and CCC-195B (Continued)

C County Office Responsibilities

County Offices shall:

• prepare CCC-195 for all CCC-185’s

• prepare CCC-195A or CCC-195B for all CCC-185’s

• maintain CCC-195 and CCC-195A or CCC-195B in each FSFL folder

• check, initial, and date the appropriate box for each item as it is performed

• for items that are not applicable, CHECK () “N/A”

• obtain all required signatures on CCC-195 and CCC-195A or CCC-195B on or before 

FSFL disbursement.

Notes: The employee completing the applicable actions shall initial and date the appropriate 

box.

Do not line through items when initials and dates are required.

 *--When the applicant’s administrative county is different from where FSFL will be physically 

located, the producer’s administrative county will process FSFL, and the servicing county 

will be the county where FSFL is physically located unless determined otherwise by STC. 

See subparagraph 210 A.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4-48
Par. 75 

75 Application Processing and Producer File Folder Maintenance

A FSFL Folders

County Offices shall: 

• prepare a 6- or 8-position or similar folder for each CCC-185 

• file all applicable documents in the folder

Note: See Exhibit 32 for a suggested filing guide.

• safeguard the original CCC-186 and all security documents according to 32-AS, 

paragraph 59. 

When there are separate FSFL’s for partial and final disbursements, all documents for both 

FSFL’s shall be filed in the same folder.

B Processing Application Fees

County Office must collect the application fee when accepting CCC-185, input the 

application fee in DLS according to 2-FSFL, and deposit immediately according to 64-FI.

See paragraph 301 for additional guidance. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4-49 
Par. 75 

75 Application Processing and Producer File Folder Maintenance (Continued)

C Notify Applicant of Missing Information 

An employee shall review the application information submitted for completeness and 

*--missing forms or information according to paragraph 69 and promptly initiate the 

environmental review kick-off meeting with completion of 1-EQ, Exhibit 15 according to 

1-EQ, subparagraph 2 D.--* 

CCC-185 and other forms should be reviewed for completeness. For example, verify that the 

applicant answered the DCIA question in CCC-185, item 11. 

If all required items are not received within 15 workdays of application receipt, the County 

Office must notify the applicant in writing of the items needed. The letter must: 

• grant 15 workdays for the applicant to provide the missing information

• notify the applicant that a new application fee will be collected if the FSFL request is 

withdrawn and the applicant must re-apply for the FSFL.

If no response is received within 15 workdays from the applicant, the County Office may 

withdraw the FSFL request in DLS and no further action is required by the applicant. 

If a response is received within 15 workdays from the applicant, requesting no more than 15 

additional workdays, the County Office may approve the request. No additional extensions 

are authorized.

Note: The letter notifying the applicant of missing information may be sent by certified 

mail, if necessary.

Contact the National Office for questionable situations. 

D Entering Application Information Into DLS

The FSFL application shall be entered into DLS according to 2-FSFL. Ensure the FSFL

information is correctly entered as a final disbursement only or as a partial/final 

disbursement, based on CCC-185, item 3D. 

It is very important to enter the FSFL request in DLS as soon as the producer has provided 

the application fee and sufficient information. 

E DLS-Assigned Loan Number 

The FSFL number will automatically be assigned by DLS when the application is entered. 

FSFL numbers will be the FY followed by the next sequential number for that county. For 

example: “2018-00001”. The FSFL number must coincide with the FY the application 

approval/disposition occurs. If FSFL request is not processed in the FY that the request was 

received, see 2-FSFL for the appropriate action to be taken. 

76-81 (Reserved)

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 4-50 
Par. 82

Part 5 Credit and Financial Worthiness

82 Credit History and Credit Reports

A Obtaining Credit Reports

State or County Offices shall:

• request credit reports for all FSFL applicants only from the credit reporting agency under 

*--contract with CCC which is currently Data Facts, Inc.--*

• obtain a current report of the FSFL applicant’s credit history

• ensure that only FSFL credit reports are requested from the agency under contract to 

supply CCC with FSFL credit reports

• not collect the cost of the report from the applicant

• request credit reports before the required financial analysis is completed

• ensure that reports requested for another County Office are processed timely and 

immediately sent to the requesting office.

State and County Offices requesting entity credit reports shall also request individual or joint 

 *--reports for the members of the entity with the greatest shares. See subparagraph 85 G to 

determine if a credit report is required for members of the entity with the greatest shares.--*

Examples: If there is a:

• 4-member partnership, each sharing 25 percent, a credit report is required

for all members of the partnership

• 2-member partnership, 60 percent for 1 member and 40 percent for the 

other member, a credit report is required for the member with the 60 

percent share.

*--For FSFL requests with an aggregate outstanding balance of $50,000 or less, a financial 

analysis for entity members with the greatest shares is not required unless STC determines it 

is necessary on a Statewide basis and not on a case-by-case basis.--*

Notes: FLP FBP shall not be used to obtain FSFL credit reports. However, if an FLP credit 

report is available, that report may be used for FSFL purposes if generated within 

90 calendar days of both CCC-185 and submission of information required for the 

financial analysis.

If the applicant provides a Letter of Intent from a lender that an Irrevocable Letter of 

Credit will be utilized for the entire loan amount according to subparagraph 121 E, a 

credit report and financial review is not required. 

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-1
Par. 82

82 Credit History and Credit Reports (Continued)

B Applicant Authorization

The Fair Credit Reporting Act requires, at a minimum, a signature from all FSFL applicants 

for whom a credit report will be requested. Immediately before requesting a credit report 

from Data Facts, Inc., a signature is required from all FSFL applicants and/or entity 

members for which CCC needs a credit report to determine eligibility.

Signature on CCC-185 is acceptable for Fair Credit Reporting Act compliance. If additional 

signature space is needed to authorize the credit report, use CCC-185, item 12.

County Offices may use FSA-2004 for authorization if the individual for whom FSA is 

requesting a credit report has not signed CCC-185. The Fair Credit Reporting Act requires a 

signature from the individual authorizing the credit report. In community property States, 

a husband or wife cannot sign FSA-2004 on behalf of the spouse.

Producers may submit a written request for a copy of their credit report after it has been 

obtained from Data Facts, Inc.

C Available Credit Reports

Credit reports will be available for the following FSFL applicants:

• “Individual”, 1 specific person who is solely responsible for their debts

• “Joint”, 2 married individuals who, according to the law in a specific State, jointly own 

assets and are responsible for the debts of each other

• “Entity”, legal entities doing business as any of the following:

• corporations

• estates

• limited and general partnerships

• LLC’s

• trusts.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5-2
Par. 82

82 Credit History and Credit Reports (Continued)

D Ordering Credit Reports

Unless State Offices have been notified in writing by their regional OGC, use the “Joint” 

search option if husbands and wives on the same CCC-185 are searched.

State and County Offices shall not request individual or joint mortgage reports.

Ensure that the correct legal name and address are entered when requesting a credit report. 

CCC is charged for each request submitted, even if the information is incorrect. This 

includes typographical errors.

When requesting any type of credit report, only click “Submit” once.

To prevent being charged for duplicate credit reports, designated employees shall turn off 

pop-up blockers on the FSFL credit report web site as follows:

• go into the web site provided when authorized to request credit reports

• CLICK the following:

• “Tools”

• “Pop-up Blocker”

• “Turn Off Pop-up Blocker”.

 *--E Ordering Credit Reports for Individuals, Joint and Entities

FSA has a contract with Data Facts, Inc. for ordering credit reports. Data Facts has 2 

different platforms when ordering credit reports for individuals/joints and entities. The Data 

Facts Compliance Team will provide end users with an user ID and instructions to create a 

password for both portals.

FSFL credit reports for entities only will be ordered through the Experian Business IQ portal 

https://gateway.secure.experian.com/BusinessIQ/login.html. 

FSFL credit reports for individuals/joints only will be ordered through a portal within Data 

Facts, Inc. called Tazworks at https://datafacts.instascreen.net/sso/login.taz.

User manuals for ordering credit reports entities and individuals/joints are available at 

https://inside.fsa.usda.gov/program-areas/dafp/dafp-training/index.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-3
Par. 82

82 Credit History and Credit Reports (Continued)

F Analyzing Credit History Reports

The authorized individual performing the financial analysis shall:

• analyze credit reports to detect:

• patterns of late payments or non-payments

• bankruptcy and foreclosures

• heavy usage of short-term or high-interest loans or credit cards

• use pertinent information from the financial statements and credit history reports to 

prepare recommendations to COC

• protect the hard copy of the credit report according to PII policy

● consider the FICO score (available on the credit report) when determining credit 

worthiness.

Notes: FICO scores are used by lenders to make accurate reliable and fast credit risk 

decisions. 

The scores are highly predictive measures of applicant and customer risk.

FICO scores are not available for Experian business credit reports.

The following resources are also available to assist in understanding credit reports and credit 

scores:

• https://www.myfico.com/credit-education/whats-in-my-credit-report

• https://www.lifelock.com/learn-credit-finance-what-is-credit-report.html

• https://www.myfico.com/credit-education/what-is-a-fico-score.--*

G Centralized Payment

Payments for all FSFL credit reports shall be made to the approved contractor from the 

National Office. State and County Offices shall not pay for FSFL credit reports.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-4
Par. 82

82 Credit History and Credit Reports (Continued)

 *--H Monthly Reconciliation of Credit Report Invoice

Before the National Office is able to pay the monthly invoice for FSFL credit reports 

requested the previous month, the entire invoice must be reconciled.

State Offices must provide to the National Office at FSFLPolicy@usda.gov, the name(s) of 

the State Office contact(s) who are responsible for reconciling the monthly credit report

invoice for their State. The National Office will provide PSD SharePoint access to the FSFL

Credit Report folder to those State Office contacts. 

Following are the steps included in the monthly reconciliation.

Each month, the National Office will post the invoice to the PSD Share Point Site at 

https://usdagcc.sharepoint.com/sites/fsa-dafp/psd/policy/SitePages/Home.aspx. Access 

the report according to the following:

• Navigate to “FSFL Credit Reports”

• Navigate to “Applicable Month”

• Navigate to “Applicable Year”.

• The National Office will notify the State Office contacts by email to provide:

• notification that that the monthly invoice has been posted to the FSFL SharePoint Site

• date the reconciliation report is due

• name of the National Office POC who will assist in answering questions about the 

monthly reconciliation.

The most current version of the FSFL Reconciliation Spreadsheet is available at the DAFP 

Training Site under National Farm Storage Facility Loan Training Policy & Automation at 

https://inside.fsa.usda.gov/program-areas/dafp/dafp-training/index.

State Offices must determine the date the reconciliation reports from County Offices are 

required in the State Office to adhere to the due date of the monthly reconciliation to PSD.

Because the invoice cannot be paid until it is completely reconciled, the reconciliation report 

from State Offices that requested credit reports the previous month must be posted to the 

PSD SharePoint site by the date provided by the National Office. There are no exceptions--*

to submitting this report.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-5
Par. 82

82 Credit History and Credit Reports (Continued)

 *--H Monthly Reconciliation of Credit Report Invoice

The following are National Office contacts for resolving credit report discrepancies:

• Toni Williams at toni.williams@usda.gov

• Kimberly Kempel at kimberly.kempel@usda.gov

• Robin Dickerson at robin.dickerson@usda.gov

• FSFL Policy Mailbox at fsflpolicy@usda.gov--*.

I State Office Determination of Sites and Designated Employee at Each Site

To request credit reports from Data Facts, Inc., for FSFL applicants, State Offices shall 

determine the:

• offices to be set up from the following:

• all County Offices

• select County Offices throughout the State (a district or area office)

• State Office

• employees in the selected offices to be authorized.

The selected employee will be:

• responsible for all FSFL credit reports submitted from that location

• required to submit the reconciliation information in subparagraph G to the State Office 

by the due date.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-6
Par. 82

82 Credit History and Credit Reports (Continued)

J Request for Initial Set Up

After State Offices have determined the offices and designated employees to be set up to 

request FSFL credit reports, the following information shall be sent to Toni Williams, PSD 

by e-mail at toni.williams@usda.gov:

• employee’s name

• title

• GSA number

• County Office name

• office address

• phone number of office and employee

• e-mail address.

 *--The information will be forwarded to Data Facts, Inc., who will contact individuals for--*

initial set up and training instructions. The amount of time required before initial set up will 

depend on the number of offices submitted at the same time.

When the e-mail is received advising that the account has been established, the employee 

must login * * * the same day the logon ID and password is received. Otherwise, the 

temporary password expires, and the process must be repeated.

 *--Data Facts, Inc. has created user manuals for ordering Individual/Joint Reports (Tazworks) 

and Entity Reports (Experian BusinessIQ). The user manuals are available on the DAFP 

Training Site at https://inside.fsa.usda.gov/program-areas/dafp/dafp-training/index.--*

K Account Password Maintenance

Designated employees set up to request FSFL credit reports must access the specified 

request site once every 90 calendar days or their password will need to be reset.

It is recommended that a calendar event be established using Microsoft Outlook Calendar to 

remind the employee to change their password.

*--Employees must email directly support@datafacts.com to reset an expired password.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-6.5
Par. 82

82 Credit History and Credit Reports (Continued)

 *--L Alternative Credit Report Options

State and County Offices may authorize using the following alternate methods to assist with 

a FSFL financial analysis.

• FLP credit report that is already on file with FLP may only be used if generated within 

90 days of both the CCC-185 and submission of information required for the financial 

analysis. FSA will not pay for an FLP credit report for FSFL’s.

• If an Irrevocable Letter of Credit is used for entire loan amount, a credit report is not

required.

• The producer may obtain a “free” online credit report from a credit reporting agency for 

loans with an aggregate outstanding balance of $50,000 or less. The “free” online credit 

report must be dated within 90 calendar days of the FSFL request. A producer will not be 

reimbursed for a credit report if charged.

Note: The “free” online credit report must be from 1 of the 3 national credit reporting 

agencies: Equifax, Experian, or TransUnion.

• For FSFL’s with an aggregate outstanding balance of $25,000 or less, a financial analysis 

is not required, unless determined required by STC on a Statewide basis and not on a

case-by-case basis, if the FSFL applicant is in good standing (no delinquent payments

within 24 months) with the FSFL and FLP programs.

Note: The FSA employee with loan approval authority may enter in FBP notes that a

financial review was waived according to 1-FSFL, subparagraph 82 K and 

recommend approval of FSFL. 

If 1 of the authorized alternate methods is used as part of the financial review the method 

selected must be documented on the CCC-195 Processing checklist “Remarks” section.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-6.6
Par. 83

83 FSFL and Federal Delinquent Debt Applicants

A FSFL Compliance With DCIA

County Offices shall:

• identify producers who are delinquent on Federal debts according to DCIA

• require FSFL applicants to certify to DCIA compliance on CCC-185.

FSFL approval authority shall not approve FSFL’s for delinquent Federal debtors, unless the 

delinquent Federal nontax debt will be resolved on or before FSFL disbursement. See 58-FI.

Note: A Federal nontax debt is a debt that an individual owes to the Federal Government, 

other than taxes, according to IRS; for example, a Federal student loan.

B CAIVRS

FLP employees have access to the CAIVRS reporting system. If an FLP employee has 

accessed CAIVRS within the past 90 calendar days for the FSFL applicant, the information 

obtained from the CAIVRS reporting system may be used.

A CAIVRS report will not be obtained for an FSFL application unless a report has 

previously been obtained for an FLP application. County Offices will not order a CAIVRS 

report for FSFL only applications. 

C Identifying Applicable Parties for Delinquent Debt 

Delinquent Federal debt includes debt by any applicant.

If the applicant is a joint applicant, all individuals are reviewed for delinquent Federal debt 

status.

If the applicant is a joint venture, all members are considered. This includes spouses if 

required by State law.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5-7
Par. 83

83 FSFL and Federal Delinquent Debt Applicants (Continued)

C Identifying Applicable Parties for Delinquent Debt (Continued)

If the applicant is an entity, all members shall be considered. Applicable entities include, but 

are not limited to, the following:

• corporations

• estates

• general partnerships

• limited partnerships

• LLC’s

• sole proprietorships

• trusts.

D Resolving Delinquent Federal Debt

Applicants delinquent on Federal debt may provide proof that the delinquency is paid in full 

before FSFL approval.

If the applicant is unable to resolve the delinquency before FSFL approval, FSFL approval 

authority shall:

• not determine that the applicant is ineligible for FSFL

• notify applicant that the delinquency will be offset if the delinquent Federal nontax debt 

is not resolved before FSFL disbursement

• offset the delinquent Federal debt at FSFL disbursement

Note: If the delinquent Federal debt will be offset at disbursement, FSFL approval 

official must increase the down payment amount when considering whether a 

feasible plan can be achieved.

• apply the offset amount to the delinquent debt.

If the delinquent Federal debt is offset at FSFL disbursement, the applicant is still responsible 

for the entire FSFL amount, including the amount offset. In addition, if the delinquency is 

offset, the applicant must provide additional down payment to ensure that all bills for the 

FSFL structure are paid in full at or before disbursement.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5-8
Par. 84

84 Federal Judgment Liens

A Background

U.S.C. Title 28, Section 3201, enacted in 1999, provides that a debtor with a judgment lien 

against the debtor’s property as a result of debt to the U.S. shall not be eligible to receive any 

grant or loan that is made by the Federal Government until the judgment is paid in full or 

otherwise satisfied.

B Outstanding Federal Judgment Liens

The FSFL applicant and anyone who will sign CCC-186 shall not have any outstanding 

unpaid judgment liens obtained by the U.S. in any court.

Exception: These judgments do not include Federal judgment liens filed as a result of 

action in the U.S. Tax Courts.

C County Office Action

County Offices shall:

• perform searches of recorded judgment dockets and applicable real estate records to 

identify applicants who may have outstanding Federal judgment liens

• not approve CCC-185D’s for applicants who have unresolved Federal judgment liens 

filed against them

• continue FSFL processing if applicants prove they have satisfied Federal judgment liens

• not use FSFL proceeds to pay Federal judgment liens.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5-9
Par. 85

85 Financial Planning

A Analyzing Balance Sheets and Cash Flow Statements

Use FSA-2037 and FSA-2038 or similar forms, prepared by either the applicant or a financial 

institution within 90 calendar days of submission, to determine the following:

• that the applicant has the financial ability to make the down payment according to 

subparagraph D

• that the applicant has the financial ability to timely repay FSFL according to 

subparagraph E

• whether COC or STC should approve or disapprove FSFL

• the level of collateral security needed.

B Acceptable Balance Sheets and Cash Flow Statements

Use 1 of the following to make the determinations in subparagraph A:

• FSA-2037 and FSA-2038 available at the FSA eForms web site at 

https://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home

• balance sheet and cash flow statement approved for usage in the State

• balance sheet and cash flow statement that provides all the information necessary to make 

the determinations in subparagraph A.

Note: Existing plans used for FLP may be used, but must be revised to plan for FSFL debt. 

FLP staff must be consulted before any revisions to existing plans take place.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5-10
Par. 85

85 Financial Planning (Continued)

C When a Cash Flow Statement Is Not Necessary

Employees performing financial analysis may waive analysis of cash flow and accept only a 

balance sheet meeting the requirements of subparagraphs A and B from FSFL applicants

*--when all of the following conditions apply.

Aggregate outstanding 

total of all FSFL’s, 

including the new FSFL Debt to Asset ratio

Net worth of the 

requested FSFL 

amount or greater

Required down 

payment from 

working capital is 

at least

Up to $10,000.00 50 percent or less 2 1 time

$10,000.01 - $30,000.00 40 percent or less 4 3 times

$30,000.01 - $50,000.00 30 percent or less 6 5 times

For loan amounts provided in the table:

• FSA employee with loan approval authority must review the balance sheet, and 

• all requirements must be met, including the applicants must be current on all payments to 

all creditors, including FSA and CCC.

Example: Requested loan amount: $7,000 (FSFL ML) 

Debt to Asset ratio: 33 percent (required 50 percent or less)

Net worth is: $200,000 (required at least 2 times of FSFL amount ($7,000) = 

$14,000)

Working capital: $130,000 (required 5 percent down payment = $350).--*

D Planning for Down Payment

Prepare or obtain a plan for the applicant’s current FY:

• total cost of the storage facility, storage and handling truck, and/or handling equipment

• approximate amount of FSFL

• using actual expenses, if available

• showing enough cash available to make the required down payment

• showing increased down payment needed to pay any offset that may occur according to

paragraph 83 for delinquent Federal debt.

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 5-11
Par. 85

85 Financial Planning (Continued)

E Planning for Future Installments in Typical Year

Prepare a projected plan for the applicant’s FY in which the first FSFL installment is due 

showing the projected installment amount for FSFL.

The employee performing the financial analysis will determine whether the applicant has a 

feasible plan.

F Obtaining Additional Information if Needed

County Offices may:

• verify debts and assets only when debt and asset information provided by the applicant is 

different than shown on the credit report or through a lien search

• if applicable, prepare FSA-2015 for each applicant’s creditor according to the instructions 

on FSA-2015

• before requesting information on FSA-2015 from the applicant’s creditors, have the 

applicant sign FSA-2004 to give FSA the authority to verify their debts and assets.

Note: FSA-2004 shall be filed in the FSFL folder.

If information provided is not sufficient to evaluate an applicant’s ability to repay FSFL, 

FSA-2002 and FSA-2003 may be requested.

Note: Use:

• FSA-2002 for 3 years financial history

• FSA-2003 for 3 years production history.

 *--If authorized by STC, on a Statewide basis, up to 3 years of tax returns may be 

requested to assist with the financial analysis.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-12
Par. 85

85 Financial Planning (Continued)

G Financial Analysis

*--The financial analysis of an FSFL applicant must be performed by either an FLP or County 

Office employee with FLP loan approval authority within a reasonable timeframe, no later 

than 45 calendar days after a complete application package is received in the County Office

(including all required forms, supporting documentation requested, and the application 

fee).--* 

The FBP, FSFL Credit Presentation recommendation for approval or disapproval, based on 

the applicant’s credit history and financial information, shall be provided to COC or STC. 

The FBP, FSFL Credit Presentation recommendation must include:

• FSFL amount

• FSFL term

• down payment ability

• whether producer can timely repay FSFL

• if additional security is required, see paragraph 122 for the summary of the valuation of 

security policy.

Example: “Based on FSFL applicant’s credit history and financial information, I 

recommend approval of the FSFL in the amount of $________ with a loan term of 

____ years. The information provided demonstrates the applicant is creditworthy 

and has the ability to make the down payment and timely repay FSFL.”

If it is determined during the financial analysis that the producer cannot reasonably make the 

annual installment payments for the requested FSFL, the FSA employee with loan approval 

authority may recommend a lower amount for FSFL.

The Farm Business Plan User Guide provides guidance for FSA employees with loan

approval authority to use the FBP, FSFL Credit Presentation to document their 

recommendation of FSFL approval or disapproval.

Note: The Farm Business Plan User Guide is located at 

https://inside.fsa.usda.gov/program-areas/daflp/software-manuals/index.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-13
Par. 85

85 Financial Planning (Continued)

G Financial Analysis (Continued)

If an Irrevocable Letter of Credit is used as security for FSFL and a letter of intent or 

guarantee is provided with the FSFL application package, a financial analysis and credit 

report are not required, unless it is required by STC. This determination will be on a 

statewide basis and not on a case-by-case basis. The acceptable Irrevocable Letter of Credit 

must be provided at or before FSFL closing. 

If an increase of up to 10 percent of the FSFL is requested by the producer after FSFL has 

been approved, a new financial analysis is not required, unless it is required by STC. See 

subparagraph 176 B.

A financial analysis is required for the members of the entity with the greatest share.

Examples: If there is a:

• 4-member partnership, each sharing 25 percent, a financial analysis is 

required for all members of the partnership

• 2-member partnership, 60 percent for 1 member and 40 percent for the 

other member, a financial analysis is required for the member with the 60 

percent share.

STC may determine whether a financial analysis is required for all members. This 

determination will be on a statewide basis and not on a case-by-case basis.

*--Note For FSFL requests with an aggregate outstanding balance of $50,000 or less, a 

financial analysis for entity members with the greatest shares is not required unless 

STC determines it is necessary on a Statewide basis and not on a case-by-case 

basis.--* 

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-14
Par. 86

*--86 FSFL LRA Training Program

A FSFL LRA Background

The FSFL LRA training program was implemented to train CED’s to complete a financial 

analysis and recommend FSFL loan approval or disapproval to COC or STC for loans with 

an aggregate outstanding balance of $50,000 or less. The FSFL LRA training includes FSFL 

loan making, as well as reviewing and recommending FSFL credit actions in FBP. 

Currently, the intent of the program is:

• to perform financial analysis for FSFL only with an aggregate outstanding balance of 

$50,000 or less

• alleviate FSFL workload burdens currently placed on DAFLP staff 

• improve the delivery of FSFL’s in counties without a full-time DAFLP presence.

• to provide an individually paced training to SED-selected CED's at no cost. 

B LRA Requirements

LRA trainees will be required to commit to the individually self-paced FSFL LRA training 

program for up to 6 months and must successfully complete a comprehensive proctored exam 

at the conclusion of the training. 

There is no cost associated with enrolling and completing the FSFL LRA training program. 

The FSFL LRA training course is outlined in the following table:

FSFL LRA Training Course Outline

Step Action

1 Review/Study the FSFL LRA training manual and material provided by PSD.

2 Obtain access to FBP from State Office FBP Coordinator and complete FBP 

training assignments.

3 Complete quizzes 1 through 7 in AgLearn.

4 Complete final exam in AgLearn (proctored).

5 Complete FSFL LRA survey in AgLearn.

6 Complete a financial review for 2 case files assigned by the respective State Office 

contact within 30 calendar days.

7 The DD, State Office specialist or FLP employee will notify PSD that the financial 

review was adequately completed.

8 Receive a certificate of completion from the National Office.

9 Start completing financial reviews for FSFL’s with an aggregate outstanding 

balance of $50,000 or less. Before loan disbursement, the State Office or DD will 

review the first 3 loans completed per county, per FY.

--*

87-95 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 5-15
..
Par. 96

Part 6 Other Requirements

Section 1 Insurance

96 Multi-Peril Crop Insurance, NAP Requirement, or Dairy Coverage

A Requirements

For the purposes below, a crop of economic significance is defined as any insurable FSFL 

commodity that contributes 10 percent or more of the total expected value of all commodities 

grown by the applicant. 

MPCI, NAP, or dairy coverage is required on all eligible insurable commodities for all 

borrowers with an outstanding aggregate balance of $25,000.01 or more:

• stored in the FSFL-funded facility

• economic significance on all farms operated by the borrower in the county where the 

storage facility is located.

MPCI, NAP, or dairy coverage is not required for drying and handling equipment or storage 

and handling trucks, unless:

• determined necessary when the financial analysis is performed; or

• a more restrictive policy has been set by STC on a Statewide basis and not on case-bycase basis.

MPCI, NAP, or dairy coverage is not required when an Irrevocable Letter of Credit is 

provided to secure the FSFL, unless determined necessary by the STC.

FSFL dairy producers are required to provide an insurance policy that insures both of the 

following, at a minimum:

• dairy cattle death

• unexpected decreases in milk production.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 6-1
Par. 96

96 Multi-Peril Crop Insurance, NAP Requirement, or Dairy Coverage (Continued)

A Requirements (Continued)

If it is determined insurance is not available for the applicable commodity, the producer may 

request a waiver for the term of the loan and STC or COC may approve or disapprove.

County Offices shall require the producer to provide proof of multi-peril crop insurance 

and/or verify NAP, or dairy coverage before disbursement, except if subparagraph D applies.

If multi-peril crop insurance, NAP, or dairy coverage is not available for some of the 

renewable biomass commodities, then COC minutes must document the unavailability of 

multi-peril crop insurance, NAP, or dairy coverage for each FSFL to which this applies.

Note: LGM or MPP are not required for FSFL eligibility.

B Acceptable Forms of Insurance

Acceptable forms of crop insurance are any level of coverage offered under FCIC, NAP, or 

dairy insurance policies.

Rainfall and Vegetation Index, Whole-Farm Revenue Protection, farm and ranch insurance 

policies are acceptable and must specify the eligible commodities being covered.

*--RMA’s Pasture, Rangeland and Forage Program, PFR insurance is sufficient to insure hay.--*

C Acceptable Proof of Insurance

County Offices shall accept proof of crop insurance, NAP, or dairy coverage, such as the 

following:

• statements of coverage for the applicable crop year

• applications for insurance for the applicable crop year signed by the agent

• other forms of proof acceptable to CED.

Evidence of insurance or a copy of CCC-471 shall be maintained in the FSFL folder.

*--Evidence of insurance must be provided by the borrower and documented on the CCC-195 

Servicing when received by County Office.--*

D Failure to Meet Multi-Peril, NAP, or Dairy Coverage Requirements

County Offices shall ensure multi-peril crop insurance, NAP, or dairy coverage requirements 

are met before FSFL closing unless a waiver has been granted according to paragraph 157.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-2
Par. 97

97 All-Peril Structural Insurance

A Requirements

All-peril structural insurance is required to protect CCC’s interest in collateral.

B Acceptable Forms of Insurance

County Offices shall:

*--require applicants to obtain all-peril structural insurance on all permanently affixed or 

portable storage structures receiving FSFL financing--*

• ensure that CCC is listed on the all-peril structural insurance policy as a loss payee or 

mortgage payee

Note: Listing FSA as loss payee or mortgage payee is not authorized for FSFL. 

• ensure that amount of coverage shall always equal or exceed outstanding FSFL balance.

Note: Authorization is provided to accept a current farm policy from the producer if the 

farm policy is amended to include the storage structure or other eligible FSFL

*--components, excluding storage and handling trucks receiving FSFL financing.--* 

CCC must be listed on the policy as loss payee or mortgage payee for the storage 

structure or eligible FSFL component.

C Failure to Obtain All-Peril Structural Insurance

County Offices shall ensure all-peril insurance requirements are met before FSFL closing 

unless a waiver has been granted according to paragraph 157.

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 6-3
Par. 98

98 Automobile Insurance

A Requirements

To protect CCC’s interest on the storage and handling truck, County Offices shall require all

applicants to:

• obtain full coverage automobile insurance, which may include hazard insurance, for the 

storage and handling truck purchased with FSFL financing

Notes: STC’s may establish, on a statewide basis, a maximum automobile insurance 

deductible. The STC policy must be documented in the STC regular meeting 

minutes.

Liability insurance only is not acceptable automobile coverage.

●*--ensure full automobile insurance coverage includes CCC as loss payee or mortgage 

payee--*

• maintain the full automobile insurance coverage continuously during the period the FSFL 

is outstanding. 

B Acceptable Proof of Insurance

County Office shall:

• accept proof of full coverage automobile insurance coverage with a maximum deductible 

not exceeding the amount established by the STC

• ensure CCC is listed as loss payee or mortgage payee on the insurance policy.

*--Note: Listing FSA as loss payee or mortgage payee is not authorized for FSFL.--*

Because the storage and handling truck may not already be purchased, the proof of 

automobile insurance may not be available prior to loan closing. See subparagraph 170 C for 

additional information on this process.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-4
Par. 99

99 Flood Insurance

A Requirements

To protect CCC’s interest in collateral, County Offices shall:

●*--determine whether proposed storage facility sites are located in a special flood hazard 

area

Note: The special flood hazard area is the land in the floodplain that is subject to a flood 

that has a one percent or greater chance of flooding in any given year, called the 

base flood. Special flood hazard areas shown on flood insurance rate maps are 

areas where the requirement to purchase flood insurance applies.--*

• document the review on FSA-850, or other acceptable environmental form

 ensure that FSA-850, item 3 J or EA as appropriate is completed, except for

environmental reviews being completed for portable equipment or storage and handling 

trucks where no ground disturbance or construction is involved

●*--document on FSA-850, item 13, “Comments” or on the EA as appropriate that flood 

insurance coverage is required, if the resource is located within the area of potential 

effect or there is a potential to adversely impact the resource

• attach to FSA-850 or EA as appropriate, any supporting documentation (such as flood 

maps, base flood elevation, etc.) for evidence that flood insurance coverage is needed,--*

if applicable

• see 1-EQ, paragraph 50 for additional guidance regarding applications involving 

floodplains and properly completing the environmental review. 7 CFR 799.2 (a)(2) states 

that “Consistent with Departmental Regulation and related Executive Orders, it is FSA 

policy NOT to approve or fund actions that as a result of their identifiable impacts, direct, 

indirect or cumulative, would lead to or accommodate either the conversion of these land 

uses or encroachment upon them.”

Note: The availability of flood insurance is unrelated to limitations on new development 

within a floodplain when the action is funded by FSA. Flood insurance only 

serves to mitigate the risk of loss of value of loan security and in no way limits 

the environmental impacts of development of or encroachment on a floodplain.

• require the FSFL applicant to obtain flood insurance if the environmental review 

 *--indicates that a proposed project is located within the special flood hazard area 

(100-year floodplain).--*

• not approve FSFL’s if flood insurance is required and not obtained or not available.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-5
Par. 99

99 Flood Insurance (Continued)

A Requirements (Continued)

 *--DAFP waiver provisions are not available if it has been determined that flood insurance is 

required.--*

When flood insurance is required and an Irrevocable Letter of Credit is provided to secure 

the FSFL, flood insurance must still be purchased on or before closing of the FSFL.

See subparagraph 214 D if it is determined the FSFL security is located in a floodplain after 

the loan is closed.

B Acceptable Forms of Insurance

County Offices shall:

• review proof of insurance provided by insurance companies to ensure that insurance is 

maintained for the life of FSFL

• ensure that CCC is listed on the flood insurance policy as loss payee

• take action to call FSFL’s or contact the National Office for additional guidance when 

borrowers do not maintain insurance.

C Failure to Obtain Flood Insurance

County Offices shall ensure flood insurance requirements are met before FSFL closing.

If the required flood insurance is not purchased before FSFL closing, the producer must be 

notified in writing that the FSFL will be withdrawn if proof of flood insurance is not

provided within 15 calendar days. STC has authorization to extend the period to purchase 

flood insurance for an additional 15 calendar days.

100-108 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-6

(through 6-20)
Par. 109

Section 2 Environmental Review

109 Overview

A Background

For FSFL participation, an environmental review must be completed as provided by 1-EQ to 

determine whether the proposed action could potentially affect protected resources.

Individual farm participation in FSA programs does not normally require an EA or 

environmental impact statement preparation. However, for FSFL requests, FSA-850 or EA

as appropriate must still be completed to verify that no protected resources would be

affected. If it is determined that there is no potential for the FSFL-proposed action to impact 

the environment, then the FSA-850 or EA serves as FSA’s documentation of compliance 

with NEPA, as well as the requirements of other environmental laws, regulations, and 

Executive Orders.

Notes: NEPA regulations require that Agencies complete the NEPA process before

approving the proposed action that includes coordination and/or consultation on 

protected resources with regulatory agencies and entities responsible for managing 

*--protected resources, including but not limited to surface water quality, threatened--*

and endangered species, and cultural resources.

SEC’s are encouraged to work with consulting agencies and tribes to establish local 

agreements and workflows for expediting consultation processes and agreeing to 

which types of FSFL projects for which they do and do not want to be consulted. 

Similarly, they may agree to identify specific areas where they may or may not have

an interest in being consulted and thus improve the efficiency of the consultation 

processes.

FSFL applicants must consult with FSA regarding environmental processes early in

the planning process so that the appropriate level of environmental review can be 

determined and subsequently completed. See 1-EQ and related responsibilities in

subparagraph 4 C. In order to not delay FSFL processing, development of the 

environmental review may begin prior to receipt of a completed application. Once an 

applicant has decided to pursue an FSFL and determined the nature and location of 

the proposed project a kick-off meeting with completion of 1-EQ, Exhibit 15 should 

be promptly held. As appropriate, a site visit and consultation letters are to be sent 

without delay.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-21
Par. 109

109 Overview (Continued)

A Background (Continued)

 *--Example: A plan to build a farm storage facility is the beginning point. 

However, additional information is necessary to properly complete the 

appropriate level of environmental review (FSA-850 or Environmental 

Assessment) as appropriate. To complete the environmental review, it 

will be necessary to know some of the specifics of the proposal to 

adequately assess potential impacts, such as:

• site location

• level of disturbance (earth moving, tree removal, etc.)

• cultural resources (cemeteries, sacred places, etc.)

• permits and plans

• design (size, foundation type etc.)

• infrastructure (electrical, water, gas, roads, and culverts, etc).

This information is necessary to adequately assess potential impacts 

and send consultation letters.--*

B Objectives

The primary objectives of this section are for FSA to make better decisions by:

• taking into account potential environmental impacts of proposed projects

• working with applicants, other Federal Agencies, Indian tribes, State and local 

governments, and interested citizens and organizations to formulate actions that advance 

FSFL goals in a manner that will protect, enhance, and restore environmental quality.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-22
Par. 110

110 Evaluating Potential Environmental Effects

A Preparing Evaluations

All environmental reviews must be completed according to 7 CFR Part 799. 1-EQ provides 

procedure and guidelines for implementation and completing the appropriate level of 

environmental compliance review or impact analysis.

Note: SEC should be consulted about projects with extraordinary circumstances as well as 

 *--those that would take place and/or potentially affect wetlands or floodplains.

All CCC-185’s must have an environmental review completed according to 1-EQ. The 

environmental review processes including those requiring consultations are explained in 

1-EQ. SEC is available for further guidance as necessary and may consult with the FPAC

Business Center, Environmental Activities Division at the National Office.--* 

Producers may request completion of the environmental review during the planning process 

before submitting CCC-185 by:

• visiting the County Office and participating in a kick-off meeting to complete 1-EQ, 

Exhibit 15

• marking an aerial photograph of the proposed location of the structure

• indicating what type of structure they propose to construct

• provide design details or plans as appropriate.

A site visit is required to complete the environmental review when any type of ground 

disturbance, site work, clearing, or construction is involved. A physical site visit is not 

required for loans only involving portable equipment and storage and handling trucks for 

which there will be no ground disturbance and no extraordinary circumstances.

An example of a completed FSA-850 is provided at Exhibit 10 for portable equipment and 

storage and handling trucks. 

Note: See 1-EQ for guidance on completing environmental reviews and subparagraph 11 C.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6-22.5
Par. 110

110 Evaluating Potential Environmental Effects (Continued)

A Preparing Evaluations (Continued)

*--Environmental reviews for all FSFL requests must be completed with a finding of no adverse 

environmental impacts and resolution of all extraordinary circumstances before action can 

be taken to initiate a project or the CCC-185D can be approved.

The preparer and concurring official’s signature and date must be obtained on environmental 

review documents as provided by 1-EQ, subparagraph 31 B before the review can be

considered acceptable for determining the FSFL is complete. All FSFL’s secured by real 

estate will also be evaluated for the presence of environmental risks (for example:

underground tanks, asbestos, or lead-based paint contamination) by completing FSA-851, on 

the real estate offered as collateral, according to 2-EQ.--*

Note: See 2-EQ, Exhibit 5 for instructions on completing FSA-851.

When the authorized agency official is the preparer of FSA-850, they should sign as both of 

the following according to 1-EQ, subparagraph 31 B:

• the preparer, to reflect they have the requisite training to complete this function

• the official, with designated authority.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 6-22.6
Par. 110 

110 Evaluating Potential Environmental Effects (Continued)

B Applicant Responsibilities

FSA expects applicants to:

• consider the potential environmental impacts of their requests at the earliest planning 

stages and to develop proposals that minimize the potential to adversely impact the 

quality of the human environment 

• contact County Offices to determine FSA’s environmental requirements as soon as 

*--possible after they decide to apply for FSFL and participate in a kick-off meeting with 

completion of 1-EQ, Exhibit 15--*

• provide information necessary to evaluate their proposal’s potential environmental 

impacts and alternatives to them

Example: The applicant will be required to provide a complete description of the 

project elements and the proposed site or sites to include location maps, 

*--topographic maps, permits, plans, and photographs as appropriate.

• not start any actions as provided in paragraph 11 before completion of the environmental 

review processes and written FSFL approval has been provided.--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 6-23 
Par. 111

111 Other Actions

A EA’s

If after completing FSA-850 or EA the preparer determines there will be potential impacts to 

important resources listed and no alternatives or mitigation measures exist, the County Office 

shall do either of the following:

• deny the applicant’s request for FSFL

• contact SEC for further guidance.

B Monitoring

FSA staff that normally has responsibility for the post-approval inspection and monitoring of 

approved projects shall ensure that any mitigation measures identified in the approval stage 

and required to reduce adverse environmental impacts are effectively implemented and 

documented as such.

Whenever noncompliance with an environmental special condition is detected by FSA, SEC 

will be immediately informed who will then take appropriate steps, in consultation with the 

responsible program office, to bring the action into compliance.

C Environmental Risk Management

The release or presence of a hazardous substance, hazardous waste, or leaking underground 

storage tank on a property could affect the value of the property that is offered as security for 

FSFL. Therefore, due diligence will be performed for all new FSFL’s involving real estate 

as security, including real estate offered as additional security according to 2-EQ.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 6-24
Par. 112

112 Local Land Use and State and County Building Code Requirements

A County Office Action on Local Land Use

To avoid conflicts with local land use laws, County Offices shall:

• determine whether local land use laws are applicable at the proposed storage facility 

location by contacting local code enforcement officers

Note: Information obtained from the contact shall be documented in the FSFL file.

• obtain, from producers, copies of applicable:

• building permits

●*--storm water management plans and permits--*

• construction permits for flood hazard areas

• environmental evaluations and EA’s

• site plans

• zoning variances

• use information obtained for FSA eligibility purposes and environmental evaluations

• not approve FSFL’s where applicants are not in compliance with applicable local land 

use laws.

B State and County Building Code Requirements

All FSFL’s must comply with any applicable State and county building code requirements. 

These may include, but are not limited to, the following:

• construction permits and inspections

• electrical permits and inspections

●*--storm water management plans and permits.--*

113-119 (Reserved)

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 6-25
.
Par. 120 

Part 7 Securing FSFL’s 

120 Security for FSFL’s 

A Secured by CCC-186’s 

[7 CFR 1436.8] All FSFL’s shall be secured by CCC-186 covering the farm storage facility, 

equipment and/or storage and handling trucks. CCC-186 shall: 

 grant CCC a security interest in the collateral 

 be executed as required by State law where the collateral is located. 

B Description of Security for FSFL 

FSFL’s shall be secured by a lien on the farm storage facility, equipment, and/or storage and 

handling trucks financed. 

 *--Exception: FSFL’s completely secured by an Irrevocable Letter of Credit, for any loan 

amount, as described in subparagraph 121 E.--* 

Additional security may be required. See paragraph 121. 

Liens will be perfected on the proposed security. Guidance on perfecting liens is found in 

Part 8. 

C Renovated Structures 

If an existing structure is remodeled and an addition becomes an attached, integral part of the 

existing storage structure, CCC’s security shall include the existing storage structure. 

D Security on Leased Land 

For an applicant proposing to put an FSFL structure on leased land or land that is not owned 

by the applicant, COC shall require a written agreement from the landowner to the FSFL 

applicant. The agreement must allow the applicant and CCC access to the structure for at 

least the entire length of FSFL. 

For all cases, CCC-297 is required from the land owner when the FSFL structure is placed 

on real estate not owned by the borrower. 

 Notes: If an Irrevocable Letter of Credit will secure the entire FSFL, a CCC-297 is not 

required unless it is required by State law. 

A CCC-297 requirement must not be waived when a producer increases the down 

payment for a FSFL micro loan. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 7-1 
Par. 121 

121 Additional Security Requirements 

A When Additional Security Is Required 

Additional security is required if any of the following apply: 

 aggregate outstanding FSFL balance exceeds $100,000 

Note: Aggregate outstanding FSFL balance means the sum of the outstanding balances 

of all FSFL’s disbursed to borrowers signing CCC-186. 

 STC has authority to establish a more restrictive policy; however, requiring additional 

security must be for FSFL’s greater than $50,000 and must be statewide and not on a 

case-by-case basis. 

Examples: These examples are based on STC determining statewide additional security is 

not required for FSFL’s with an aggregate outstanding FSFL balance less than 

$100,000. 

 Producer has an outstanding FSFL of $75,000 and requests a new FSFL 

for $30,000. Additional security is only required to secure the new 

$30,000 FSFL. 

 A 2-person partnership submits CCC-185 for $105,000. FSFL is made to 

the partnership because the partnership is the farming entity. Additional 

security is needed because FSFL exceeds $100,000. 

STC or COC shall determine resale collateral value based on local market conditions. See 

subparagraph 122 F for guidance. 

STC or COC does not have authorization: 

 to require additional security for FSFL’s with an aggregate outstanding FSFL balance of 

$50,000 or less 

 on a case-by-case basis, to determine whether additional security is required because of a 

financial analysis or type of structure when the FSFL amount is less than the additional 

security threshold established by STC. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-2 
Par. 121

121 Additional Security Requirements (Continued)

B Real Estate as Additional Security

A lien on the real estate that includes the land where FSFL structure and/or equipment will be 

located is the preferred additional security.

After receiving guidance from the FSA employee with loan approval authority, FSFL’s must

be determined to be adequately secured according to this paragraph. See paragraph 122 for 

guidance on valuing real estate security.

For FSFL amounts secured by real estate, CCC’s interest in the real estate shall be superior to 

all other lienholders. If the real estate is covered by a prior lien, a lien subordination may be 

obtained by a form approved for usage in the State by the regional OGC.

If FSA holds a superior lien on applicable real estate through a direct FLP loan, a 

subordination agreement is not required. However, a junior lien on the real estate must be 

filed as security for FSFL.

If prior lienholders will not subordinate to CCC, COC may approve alternative forms of 

security, such as the following:

• second lien position only if both of the following apply:

• CCC is adequately secure

• FSA-2319 or a similar agreement is executed by the prior lienholder, following 

requirements specified by the regional OGC, not to extend additional liens on the 

property

Exception: CCC will not require FSA-2319 or a similar agreement from any 

USDA Agency.

• first lien on different real estate

• Irrevocable Letter of Credit.

Note: See subparagraph E for additional Irrevocable Letter of Credit guidance.

Items, such as livestock, machinery, vehicles, and other equipment, are not authorized to be 

used as additional collateral for FSFL.

*--For FSFL’s with an aggregate outstanding balance of $250,000 or less, STC (Statewide and 

not on a case-by-case basis) is authorized to approve the change of FSFL’s security collateral 

after the loan has been disbursed. The approval must be documented in the STC meeting 

minutes and producer’s FSFL file.

For FSFL’s with an aggregate outstanding balance greater than $250,000, a DAFP waiver is 

required when a request is received from the borrower to change collateral initially provided

for FSFL security after the loan has been disbursed.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 7-3
Par. 121

121 Additional Security Requirements (Continued)

C Real Estate Lien Guidelines

The lien should cover specific acreage, including the entire parcel of real estate underlying 

the collateral that is:

• sufficient in size and value in the approving COC’s or STC’s, as applicable, opinion to 

ensure FSFL payment

Note: If necessary, consult with an FSA employee with loan approval authority to 

determine real estate value.

• a salable unit in the event of foreclosure.

D Land Separate From the Facility

Real estate liens may cover acreage separate from the facility, if an adequate lien on the 

underlying real estate is not feasible, and if all of the following apply:

• applicant owns the separate acreage that is not subject to any other liens or mortgages 

that would be superior to CCC’s lien interest

Note: If there is a prior lien of record, a subordination agreement is required to give 

CCC a first lien position.

• acreage of the entire parcel is adequate in size and value, in the approving COC’s or 

STC’s, as applicable, opinion, to adequately secure and insure FSFL payment.

If FSA holds a first lien on the applicable real estate through a direct FLP loan, a 

subordination agreement is not required. However, a junior lien on the real estate must be 

filed as security for FSFL.

STC’s have authority to approve using real estate owned by someone other than the 

applicant. This will be a Statewide determination and not on a case-by-case basis. In all 

cases, a CCC-297 will be required.

Note: See subparagraph 122 E and Exhibit 51 when applying value to the FSFL structure 

separate from real estate.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-4
Par. 121

121 Additional Security Requirements (Continued)

E Irrevocable Letters of Credit or Bonds

Other forms of security may be considered to be acceptable by the approving COC or STC, 

as applicable, such as Irrevocable Letters of Credit, bonds, or similar CCC-approved 

instruments.

*--The original Irrevocable Letter of Credit, for any loan amount, must be:--*

• from a financial institution and provided by the applicant

Note: A letter of intent from the financial institution shall accompany the application 

package. See Exhibit 69 for an example of the Letter of Intent.

• for the total of FSFL principal plus interest for the first year, unless required by STC on a 

statewide basis, for an additional 60 calendar days.

Notes: If an Irrevocable Letter of Credit is used in addition to the structure, handling 

equipment, storage and handling trucks, or real estate to secure FSFL, the 

Irrevocable Letter of Credit must:

• be provided for the amount needed to secure FSFL

• include the amount needed to secure total FSFL plus interest for the first year.

STC has authority to establish interest for an additional sixty days on the 

Irrevocable Letter of Credit. This must be Statewide and not on a case-by-case 

basis.

• written to allow partial draws if the annual installment payment is not received by the 

due date

• written in a manner sufficient to protect CCC’s security interest in the collateral

Note: PSD has an example of an acceptable Irrevocable Letter of Credit that will be sent 

to State Offices on request.

• used in each State, under guidance of the regional OGC, to comply with laws specific to 

that State

• used by each financial institution and reviewed and approved by the regional OGC 

each FY.

Note: Any variances to FSFL requirements when Irrevocable Letters of Credit are used 

must be specified, in writing, from the regional OGC.

• filed according to 32-AS, paragraph 59.

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 7-5
Par. 121

121 Additional Security Requirements (Continued)

E Irrevocable Letters of Credit or Bonds (Continued)

STC’s are authorized to approve a replacement Irrevocable Letter of Credit when a producer 

requests, in writing, to annually provide a replacement Irrevocable Letter of Credit that will 

be for the reduced outstanding FSFL principal balance and interest for one year. If changes 

other than the reduced outstanding principal balance are made to the Irrevocable Letter of 

Credit, STC’s or designee must obtain the regional OGC concurrence.

Note: County Offices must obtain and maintain an original Irrevocable Letter of Credit.

Multi-peril crop insurance, NAP, or dairy coverage, and all-peril structural insurance, as 

discussed in Part 6, are not required if FSFL is fully secured with an Irrevocable Letter of 

Credit only, unless STC determined it is required Statewide.

Note: If an Irrevocable Letter of Credit is provided to secure the FSFL and flood insurance 

is required as an eligibility requirement, flood insurance must be purchased before the 

FSFL can be disbursed.

FSFL may be conditionally approved, and County Offices must require that the Irrevocable 

Letter of Credit or other form of security be provided before disbursement. CCC-185D, item

4 should be noted that an Irrevocable Letter of Credit will be used to secure FSFL.

State Offices must check with their respective regional OGC to ensure that laws specific to 

their State are included in the Irrevocable Letter of Credit.

 *--The Irrevocable Letter of Credit is considered sufficient security for all FSFL’s (regardless 

of the loan amount) when all requirements are met according to this paragraph and a--*

financial analysis is not required, unless a more restrictive policy has been set by STC on a 

Statewide basis and not on case-by-case basis.

STC or COC may authorize using an Irrevocable Letter of Credit, FSFL structure, and/or real 

estate to adequately secure FSFL.

An Irrevocable Letter of Credit is not required for FSFL’s with an aggregate outstanding 

FSFL balance equal to $100,000 or less, unless STC determined, on a statewide basis and 

not on case-by-case basis, that additional security is required for FSFL’s with an aggregate 

outstanding FSFL balance between $50,000.01 and $100,000.

If UCC-1 was previously filed, then UCC-1 should be released after the County Office has 

received the Irrevocable Letter of Credit for the full amount of FSFL, unless STC or regional 

OGC determined UCC-1 is still necessary.

An Irrevocable Letter of Credit can be used in addition to the FSFL structure or collateral if 

additional security is required. STC may allow up to 50 percent of FSFL amount for the 

value of the structure when an Irrevocable Letter of Credit is used in addition to the FSFL 

structure or collateral.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 7-6
Par. 121 

121 Additional Security Requirements (Continued)

E Irrevocable Letters of Credit or Bonds (Continued)

Example 1: CCC-185 submitted for $200,000 FSFL that requires additional security. 

When using an authorized method according to subparagraph 122 K, STC has 

authority to allow up to 50 percent of FSFL amount for the value of the new

structure. The Irrevocable Letter of Credit must be provided for the 

remaining security needed. 

 $200,000 FSFL amount. 

- $100,000 Value of structure (STC authorizes COC to allow the value of 

the FSFL structure to equal 50 percent of FSFL amount). 

 $100,000 Remaining security needed.

 $100,000 Irrevocable Letter of Credit provided to secure FSFL. 

Irrevocable Letter of Credit + value of FSFL structure (50 percent) = 

100 percent; therefore, FSFL is adequately secured.

Example 2: CCC-185 submitted for $120,000 FSFL that requires additional security. 

When using an authorized method according to subparagraph 122 K, STC 

approved COC’s to allow the value of the used hay storage structure to equal 

20 percent of FSFL amount, or in this case $24,000, when the structure is 

located on the property to be mortgaged. In this example, the value of the 

structure and security must equal at least 125 percent of FSFL. 

$150,000 Total security needed for $120,000 FSFL (125 percent of FSFL

amount). 

 -24,000 Value of structure STC authorizes COC to use. 

$126,000 Additional security needed.

$71,000 Irrevocable Letter of Credit. 

+55,000 15 acres.

$126,000 Additional security provided. 

The producer will provide as security for the $120,000 FSFL, the FSFL hay 

storage structure, first lien on 15 acres (valued at $55,000), and an Irrevocable 

Letter of Credit in the amount of $71,000. Based on this example, FSFL will 

be considered adequately secured.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-7 
Par. 122 

122 Valuation of Security

A Adequate Security and Appraisals of Real Estate

FSFL’s are considered to be adequately secured when the value of real estate offered as

*--security is at least equal to FSFL’s amount and completion of the FSA-851 found no 

unresolved issues associated with the subject real estate which could impact value or lender 

liability. For FSFL’s where the value of real estate and previous improvements offered as--*

collateral is in doubt, approving COC or STC, as applicable, may request an appraisal, at the 

FSFL applicant’s expense, from a list of FLP-approved appraisers. The applicant must agree 

to the request for an appraisal. See Exhibit 52. 

State and County Offices must request a formal DAFP waiver according to paragraph 25 for 

authorization before using a method not listed in this paragraph when determining value for 

FSFL security.

If no additional security is required according to paragraph 121, valuation of security is not

required, unless the FSFL request is for used and/or portable eligible drying and handling 

equipment or storage and handling trucks. See subparagraph 122 J. 

The CCC-185D, Item 5 must be noted with the source for the valuation that was utilized.

Note: To ensure consistency in determining the value of FSFL real estate security within a 

State, STC’s may set specific procedure to be followed. It is the responsibility of 

STC to ensure that all FSFL’s in their State are adequately secure.

Example 1: CCC-185 submitted for a $200,000 FSFL that requires additional security. 

An appraisal determined the value of the 60 acres, including FSFL, to be 

$277,500. 

$277,500 Appraised value including the structure. 

$200,000 - FSFL x 100 percent required security value = $200,000. 

Appraised value of 60 acres, including the structure, is adequate to secure 

FSFL.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 7-8 
Par. 122 

122 Valuation of Security (Continued)

A Adequate Security and Appraisals of Real Estate (Continued)

Example 2: CCC-185 submitted for a $200,000 FSFL that requires additional security. 

An appraisal determined the value of the 80 acres, including FSFL, to be 

$370,000. Local bank has a $120,000 mortgage on the ground where the 

facility is located and they will not subordinate. 

$370,000 Appraised value including the structure. 

- 120,000 Bank mortgage will not subordinate, but must sign FSA-2319. 

$250,000 Remaining value for CCC. 

$200,000 FSFL x 100 percent required security value = $200,000. 

Appraised value is adequate to secure FSFL.

B Value of FSFL Security Approval Authority

Concurrence of determined value of FSFL security must be made according to the following.

IF FSFL amount is...

THEN concurrence of determined value of FSFL security must 

be made by...

$100,000 or less COC.

$100,001 to $250,000 COC after DD review.

$250,001 to $500,000 STC. STC can delegate approval to SED only.

Note: See first table in subparagraph 10 C for exceptions applicable to FSA employees and 

their relatives.

A conditional CCC-185D approval may be issued dependent on an appraisal or other 

authorized method for determining adequate real estate security. The conditional 

CCC-185D approval must be documented in CCC-185D, item 3. It must be conveyed to the 

applicant that FSFL will not be disbursed if the determined security value is not sufficient. 

STC’s may set a more restrictive Statewide policy for determining FSFL real estate security 

values if it is determined that the economic conditions in the State and in agriculture, in 

general, require such action to protect CCC’s interests. This shall be on a statewide basis and 

not on case-by-case basis.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-9 
Par. 122

122 Valuation of Security (Continued)

C Real Estate Appraisal

To ensure that CCC is adequately secured and to prevent potential losses to the Government, 

the real estate value on FSFL appraisals shall be at least 100 percent of FSFL amount, and

*--security that is offered for FSFL’s must be in salable units with no unresolved FSA-851 

issues. The required 100 percent gives CCC the needed collateral support for FSFL.--* 

However, if necessary based on market conditions, STC’s may request statewide

authorization from DAFP to apply a value less than 100 percent of the FSFL amount when 

determining the appraised value.

FSFL applicants may request a real estate appraisal completed by an FLP-approved appraiser 

at the applicant’s expense.

IF the structure is... THEN the value of the FSFL structure is...

on the land being offered for collateral included in the appraisal.

not on the land being offered for collateral not reflected in the appraisal.

Third party appraisals are acceptable. If an appraisal was made on the real estate within the 

last 12 months by a bank or for FLP, and the real estate values have remained consistent, that 

appraisal may be used to determine value, if the appraiser conducting the appraisal is on the 

list of FLP-approved appraisers.

If a third-party appraisal is being used, which was prepared within the last 12 months and did 

not reflect the proposed FSFL structure, a value may be given to the proposed FSFL structure 

to:

• 50 percent of the FSFL loan amount if the structure is being built on the underlying real 

estate

• 20 percent of the FSFL loan amount if the structure is being built on real estate separate 

from our additional real estate security.

STC’s have authority to allow using State-certified general appraisers in addition to FLP 

appraisers.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 7-10
Par. 122 

122 Valuation of Security (Continued) 

D Appraisals Completed At Applicant’s Expense 

*--CCC-185, item 10 provides the applicant’s certification and informs the applicant that the 

appraisal cost is the applicant’s responsibility.

The applicant’s signature and date on CCC-185 must be obtained before requesting the 

appraisal. 

The producer has the option of paying the entire appraisal cost at the time of request.--* 

During the appraisal process, the appraiser is provided information from the bids the 

applicant has received for the structure to determine the value the structure will add to the 

real estate. 

The appraisal must be: 

 completed before FSFL approval or a conditional FSFL approval may be issued 

dependent on the appraisal 

 considered when the financial analysis is completed. 

Note: After the appraisal is completed, if it is determined adequate security collateral is not

available, FSFL shall not be approved. If FSFL is approved with a conditional 

approval, the security will be reassessed when the appraisal is received. 

State Offices shall request and complete the required paperwork for appraisals according to 

Exhibit 52, but the entire cost of appraisals is at the applicant’s expense and must be paid 

regardless if the producer withdraws the FSFL request. 

Applicants may authorize the County Office to add the cost of the appraisal to the eligible net 

cost. If the applicant paid for the appraisal in full before the final disbursement, the cost for 

the appraisal may be included in the applicant’s required down payment. 

Follow Exhibit 52 to establish a receivable for the appraisal cost if the producer did not 

submit payment for the entire appraisal cost at the time of loan request. The established 

receivable for the appraisal cost will be paid when FSFL is disbursed, if not previously paid. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 7-11 
Par. 122 

122 Valuation of Security (Continued) 

E Applying Value to FSFL Structure Separate From Real Estate 

When FSFL real estate security is separate from the FSFL structure, the County Office may 

apply a value of no more than 20 percent of FSFL amount to the structure if all of the 

following apply: 

 CCC-297 is obtained from the owners of the real estate on which FSFL structure is 

located severing the FSFL structure from the real estate 

Note: Unless State law, as determined by the regional OGC, makes using CCC-297 

unnecessary and CCC is adequately protected without CCC-297. 

 UCC-1 is filed on FSFL structure giving CCC first lien position 

 FSFL structure must have resale collateral value according to subparagraph F. 

See Exhibit 51 to determine the value of real estate security separate from the FSFL facility. 

F Resale Collateral Value 

This subparagraph only applies if STC determined additional security is required for FSFL’s 

with an aggregate outstanding FSFL balance between $50,000 and $100,000. 

County Offices, with assistance from an FSA employee with loan approval authority, when 

required by this paragraph, shall determine resale collateral value based on local market 

conditions and depreciation factors. 

In most cases, the resale collateral value will not equal the outstanding FSFL value, if the 

collateral is moved or sold, and will be less than its fair market value. The resale collateral 

value must be a reasonable price that CCC can expect to receive if FSFL has to be 

liquidated. A reasonable valuation will provide security for both the applicant and CCC. 

Resale collateral values should be provided by a qualified FSA expert, such as but not

limited to, an employee delegated chattel appraisal authority according to 1-FLP. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-12 
Par. 122 

122 Valuation of Security (Continued)

F Resale Collateral Value (Continued)

Use the following table as an option when it is determined by STC or COC that both of the 

following apply: 

• storage structure, handling equipment, or storage and handling trucks have been 

determined to have no resale collateral value

• producer does not have additional security to secure FSFL. 

IF the aggregate 

outstanding FSFL 

balance is...

THEN the FSA employee with loan approval authority must 

determine the producer has the ability to repay FSFL and is 

credit worthy and STC...

$50,000.01 to $75,000 may determine Statewide that a downpayment of 20 percent of 

the eligible net costs is required. 

Note: A minimum downpayment of 15 percent is required

according to paragraph 60.

$75,000.01 to $100,000 must require Statewide a downpayment of 20 percent of the 

eligible net costs.

Note: State or County Offices must ensure that the additional downpayment is recorded on 

the FSFL Disbursement Calculator, according to paragraph 175, and provide the 

following comment in FSFL Disbursement Calculator Excel spreadsheet, Part C:

“An additional downpayment was required according to subparagraph 122 F 

policy.” 

G Determining Security Values for Existing Structures

No security value can be given to existing structures unless the value of the property is 

included in an appraisal or the tax assessment statement. STC’s, COC’s, and/or FLP 

employees shall not assign a value to an existing structure based on common knowledge 

obtained from others in the community. 

Note: Third party appraisals are acceptable according to subparagraph C.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-13 
Par. 122

122 Valuation of Security (Continued)

H County TAV

TAV’s differ from State-to-State and county-to-county.

FSFL applicant may use the assessed property value from the current county tax bill for a 

specified parcel or parcels to determine the value of real estate used for FSFL security.

If a State uses TAV on the county tax bills, that percent can be applied if the exact percent is 

annually documented.

TAV reflects the State and county tax equalization process. The market value on the county 

tax bill represents the market value of the real estate.

If the market value is not included on the county tax bill, the exact percent used to determine 

the market value must be annually documented by the County Assessor. This documentation 

shall be:

• attached to a copy of the applicable tax bills

• retained in the FSFL folder.

This table provides various examples that may be used to compute the market value of real 

estate if a percent is obtained.

IF TAV or comparable percent is...

THEN to determine the market value of the 

real estate, multiply the assessed value times...

40 2.5000.

50 2.0000.

60 1.6667.

65 1.5385.

75 1.3334.

100 1.0000.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-14
Par. 122 

122 Valuation of Security (Continued)

H County TAV (Continued)

Under this option, and if authorized by STC, COC may determine the value of FSFL 

structure to equal up to, but not exceed, 50 percent of FSFL amount, if the facility is located 

on the property to be mortgaged.

Example: CCC-185 submitted for a $250,000 FSFL that requires additional security. STC 

has approved COC’s to allow the value of the new FSFL structure to equal 50 

percent of FSFL amount, or in this case, $125,000. Real estate security without 

any value given to the FSFL structure must equal $125,000. Current county tax 

bill shows the assessed value of an 80 acre parcel to be $62,500. The County 

Assessor provides CCC written documentation that indicates TAV is 50 percent 

($62,500 x 2 = $125,000). 

$250,000 FSFL amount.

- 125,000 Value of structure STC authorizes COC to use.

$125,000 Real estate security needed.

$125,000 Real estate security value (TAV must equal $125,000). 

In this example, CCC has first lien on the 80 acre parcel. With the new structure 

and first lien on the 80 acres, CCC is secure.

I Additional Authorized Methods

If any of the authorized methods in this subparagraph are used: 

• and if authorized by STC, COC may assign a value to the structure of no more than 

50 percent of FSFL amount, if the structure is located on the property to be mortgaged

unless a more restrictive policy has been set by STC

Note: If the structure is not located on the property being mortgaged, the structure may 

be valued at no more than 20 percent of the FSFL amount according to 

subparagraph E.

• the value of the structure and real estate must equal at least 125 percent of FSFL.

To ensure that FSFL’s are adequately secured, County Offices must use the most practicable 

method and be conservative in judgment when determining the value of FSFL security. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-15 
Par. 122

122 Valuation of Security (Continued)

I Additional Authorized Methods (Continued)

If the following methods are available by county or regional areas, it is recommended that 

County Offices primarily use that method. County Offices, with the assistance of an FLP 

loan approval official when necessary, are authorized to use the following methods when 

determining value of FSFL security:

●*--NASS Land Values 2021 Summary published annually in August

Note: The NASS Land Values and 2021 Summary can be obtained at 

https://www.nass.usda.gov/Publications/Todays_Reports/reports/land0821.pdf. 

The NASS publications may also be available for individual States by county or 

regional areas.

Example: The NASS Land Values 2021 Summary was used to determine the value of 

crop land for 2021 for FSFL 2021-00002. The South Carolina 2021 Cropland 

Value was valued at $2,900 per acre and is determined to be conservatively 

reasonable. Therefore, 120 acres of cropland times $2,900 equals $348,000. 

NASS Land Values 2021 Summary, page 11 is filed in the producer’s--*

FSFL folder for reference.

• market value estimate from a FSA employee with loan approval authority.

Note: Must be documented and cannot use appraisals from other producers.

• NIFA farm land value surveys

• land-grant university published reports

• State or county published Agricultural Sales and Median Ratio Report.

Important: The authorized method selected must be maintained in FSFL folder or a 

referenced folder and include the methodology used to determine the security 

value for FSFL.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 7-16
Par. 122 

122 Valuation of Security (Continued)

J Value of New Portable Storage Facilities, Handling Equipment and Storage and 

Handling Trucks

County Offices are not required to value new portable storage structures, handling 

equipment, and storage and handling trucks. The sales documents, invoices and bills for 

new FSFL components are sufficient when determining the value. 

Note: STC or COC may determine if the cost for the FSFL components are reasonable 

and request additional information to support the cost, if necessary.

If the aggregate outstanding FSFL balances require additional security, the following 

guidelines must be met: 

• COC may assign a value of no more than 50 percent of the FSFL amount for the 

items being purchased

• additional security as described in paragraph 121 must be obtained. The additional 

security plus the 50 percent of the FSFL amount must equal at least 100 percent of 

the FSFL.

K Value of Any Used Portable Storage Facilities, Handling Equipment and Storage and 

Handling Trucks

County Offices may use the following resources for determining the value of used storage

and facilities, handling equipment and storage and handling trucks: 

• NADA

• Kelly Blue Book

• local auction/internet comparable sales

• bill of sale/invoice for a similar type of equipment

• reputable auction websites, such as Auctiontime.com

• qualified FSA expert, such as but not limited to, an employee delegated chattel appraisal

authority according to 1-FLP.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-17 
Par. 122 

122 Valuation of Security (Continued)

K Value of Any Used Portable Storage Facilities, Handling Equipment and Storage and 

Handling Trucks (Continued)

If it is determined that these sources are not available to provide a fair and reasonable 

market value, STC or COC can use other sources, practical knowledge and expertise to 

determine a reasonable value to support the cost of the used FSFL component. The 

reasonable value must be a reasonable price that CCC can expect to receive if the FSFL 

collateral has to be liquidated. 

For questionable situations, contact the National Office.

If the aggregate outstanding FSFL balance does not require additional security, the valuation 

of the used items to be purchased must be equal to or exceed the amount of the loan. 

If the aggregate outstanding FSFL balance requires additional security, the following 

guidelines must be met: 

• COC may assign a value of no more than 50 percent of the FSFL amount for the used

items being purchased

Note: For used items STC’s are authorized to allow a reduced value of 20 percent of 

the FSFL amount. This must be on a statewide basis and not on a case by case 

basis. 

• additional security as described in paragraph 121 must be obtained. The additional 

security plus the 50 percent (or 20 percent if reduced by State Committee) of the FSFL 

amount must equal at least 125 percent of the FSFL. 

STC or COC must document on CCC-185D, item 5 the source used for determining a

reasonable value. A reasonable valuation to support the cost will provide security for both

the producer and CCC.

123-139 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7-18 
Par. 140 

Part 8 Liens

140 State Supplement Explaining State Legal Requirements

A Method of Securing a Lien

Filing UCC-1 provides FSA with a lien on the structure being built. If a lien is required on 

real estate, the form to file is dependent on State law. For additional information on filing 

these documents, see paragraphs 142 and 143. 

B Verifying Lien Position

A lien search must be performed to determine CCC has the lien position required. See

paragraph 144. 

The method to properly perfect a lien on security varies significantly between States. Each 

State, with regional OGC guidance, shall issue a State supplement to provide additional 

guidance on properly perfecting liens within their State. 

141 Completing CCC-10’s 

A Applicability

Producers applying for FSFL’s at the County Office are required to provide specific 

information on CCC-10. CCC-10 will:

• serve as CCC’s or FSA’s notice of intent to perfect its security interest

• identify the debtor’s exact full legal name, and if the debtor is an entity, the type and 

location of the entity 

• identify the jurisdiction in which CCC will conduct lien searches 

• authorize CCC to file UCC-1’s before executing CCC-186. 

See Exhibit 53 for instructions on completing CCC-10. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-1 
Par. 141

141 Completing CCC-10’s (Continued)

B Obtaining Authorization

County Offices shall:

• if a current CCC-10 is not already filed, obtain a signed CCC-10

Note: If the County Office has a signed CCC-10 on file, a new CCC-10 is not required, 

even if a new form revision has been issued. However, if a new FSFL is 

requested after the form revision date, a new CCC-10 is required.

• ensure that producers understand that:

• applicable collateral for FSFL’s is not described on CCC-10

• CCC-10 remains in effect until the producer notifies CCC or FSA of any changes by 

completing a new CCC-10

• for UCC-1’s filed manually that require the debtor’s signature, according to CCC, require

the producer to identify the jurisdiction in which to perform lien searches

Note: County Offices shall ensure that the name is as it appears on the valid State-issued 

driver’s license or State-issued ID card.

• allow spouses to sign CCC-10 on behalf of each other only as allowed, according to 

1-CM

• gather data and signatures about spouses where spousal information is required by State 

law, according to OGC

• if a spouse is a co-borrower, ensure that the husband and wife complete separate 

CCC-10’s, if required by State law

• if applicable, provide a copy of CCC-10 to other County Offices in which the producer is 

active

• file CCC-10’s in alphabetical order in folders labeled “PSLF-3-d-2 Financing 

Statements”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-2
Par. 142

142 Chattel Lien Instruments

A Perfecting Liens for Storage and Handling Trucks and Handling Equipment

Filing UCC-1 provides FSA with a lien on the permanently affixed or portable (new or used) 

structure or FSFL equipment being acquired, installed or built.

To perfect a lien on storage structures, storage and handling trucks and/or handling 

equipment with an identifiable number, such as serial numbers or VIN, the County Office 

must list the identifiable number on CCC-186 as FSFL collateral at closing.

For storage and handling trucks, when there is no existing Certificate of Title, serial number 

or VIN, the FSFL request must not be approved.

Because State laws vary for acquiring, installing, purchasing and perfecting liens for portable 

storage structures, handling equipment, and storage and handling trucks, SED’s are 

authorized to issue State supplemental policy, that may be more restrictive; however, the 

State supplemental policy must at least include the following how or when requirements:

• full coverage automobile insurance (collision and comprehensive) must be provided

• State emissions and vehicle inspection must take place and will be verified, if applicable

• CCC will be listed as lienholder, if applicable

• Certificate of Title will be recorded at the State or local MVA.

It is recommended that SED’s work with FSA employees with loan approval authority to 

establish the necessary State supplemental policy.

B Obtaining UCC-1’s for Financing Statements

UCC-1’s for FSFL financing statements shall be obtained, completed, and submitted 

according to State laws.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-3
Par. 142

142 Chattel Lien Instruments (Continued)

C State Office Action

The method to properly perfect a lien on security varies significantly between States. Each 

SED, with regional OGC assistance, shall issue a State supplement to provide additional 

guidance on properly perfecting liens on portable structures, equipment and/or storage and 

handling trucks within their State. 

State Offices shall:

• contact their regional OGC to:

• determine whether UCC Article 9, 2010 amendments have been adopted in their State

• obtain guidance on filing new UCC-1’s with their filing offices

• obtain guidance on the required documents needed to verify changes for business 

entities and other registered organizations

• determine whether chattel lien and/or fixture filing are required for their State

• modify or issue State supplements, as necessary, according to 1-AS.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-4
Par. 142 

142 Chattel Lien Instruments (Continued)

D County Office Action

County Offices shall: 

• if applicable according to State law, obtain the applicant’s signature on the applicable 

manual UCC-1 when CCC-185 is submitted and before or immediately after the farm 

storage equipment is delivered to the farm 

• prepare manual or electronic UCC forms according to State law as soon as an adequate 

description of the collateral is available using data from a current CCC-10 prepared 

according to paragraph 141 

Note: If CCC-185 submitted is only for part of the structure, a lien shall be filed on the 

entire structure.

• ensure that UCC-1 is filed in the name as it appears on the valid State-issued driver’s 

license or State-issued ID card

Note: UCC-1’s must identify the debtor’s exact full name, and if the debtor is an entity, 

the type and location of the entity as provided in paragraph 69.

• file UCC forms according to State law before, or as soon as possible after, the equipment 

is delivered to the proposed location 

Note: If the Letter of Intent for Irrevocable Letter of Credit is received in the County 

Office with the application package, UCC-1 is not required, unless it is required 

by State law or STC.

• pay filing or recording fees as provided in paragraph 302 

• maintain UCC filings according to paragraph 216. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-5 
Par. 143 

143 Real Estate Lien Instruments

A Form of Real Estate Lien

Real estate liens shall be in the form of a real estate mortgage, Deed of Trust, or other 

security instrument approved by OGC and according to applicable State laws.

State Offices shall develop a real estate lien instrument in consultation with their regional 

OGC. The security instrument may be a real estate mortgage, Deed of Trust, or other type of 

instrument. The security instrument must be used for all FSFL’s to be secured with real 

estate. CCC-193 is a real estate mortgage available for FSFL. CCC-193-D is a Deed of 

Trust available for FSFL. Refer to Exhibit 6 for examples. 

See Part 11 for guidance on forms necessary at FSFL closing for securing real estate and 

perfecting liens on real estate.

B Lien Provisions

The lien on the site on which the facility is to be located must: 

• contain an exact legal description of the site

• grant CCC access rights to the property.

C Signatures

For a lien on real estate, all of the following shall sign the real estate lien instrument: 

• applicant, only if the applicant has an ownership interest in the land 

• all persons or entities having an ownership interest in the applicable real estate

• applicant’s spouse in States where spousal signatures are required by statute. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-6
Par. 143 

143 Real Estate Lien Instruments (Continued)

D County Office Action

County Offices shall: 

• prepare the instruments and provide to the closing attorney 

• file a copy of the instrument in the FSFL folder 

• provide a copy of the instrument to the borrower through the closing agent 

• record the filing date, place, book, and page number on the County Office copy. 

E Closing Agent Action

The closing agent shall: 

• obtain all necessary signatures on the instrument 

• file or record the original document according to State law. 

F Fees

The borrower shall pay all title fees according to paragraph 58.

144 Lien Searches

A Chattel Lien Searches

Applicants shall not allow any additional liens or encumbrances to be placed on the storage 

facility, handling equipment or storage and handling truck after FSFL is approved unless

CCC approves otherwise in writing. 

A lien search must be performed to determine CCC has the necessary lien position required 

for the FSFL structure, equipment and/or storage and handling truck. The lien search must

occur after the FSFL UCC-1 has been filed to determine the lien position. 

County Offices shall perform a lien search to determine that no other liens are filed on the 

collateral according to State policy.

Note: Some instances may require the lien search to also be performed using the seller’s 

information. 

CCC is responsible for costs associated with chattel lien searches.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-7
Par. 144 

144 Lien Searches (Continued)

B Real Estate Lien Searches When FSFL Has No Real Estate for Security

If the FSFL is for portable equipment and/or storage and handling trucks, this subparagraph 

does not apply. 

In the initial stages of the application process, County Offices shall: 

• conduct a real estate lien search to identify holders of liens on real estate underlying the 

intended storage facility that will determine whether CCC-297’s must be obtained

• document the lien search on FSA-2360 or similar form. 

If County Offices are unable to obtain the required real estate lien searches from their 

County Recorder, or if State procedure requires, the County Office shall use either of the 

following: 

• local title company with moderate fees

• FSA personnel trained to perform real estate lien searches. 

C Real Estate Lien Searches When FSFL Has Real Estate for Security

In the initial stages of the application process, County Offices shall: 

• conduct a real estate lien search to identify holders of liens on real estate underlying the 

intended storage facility that will determine whether CCC-297’s must be obtained

• document the lien search on FSA-2360 or similar form. 

If real estate is security for FSFL, the closing agent will complete a search of the records. 

This is accomplished by a title opinion or a title insurance policy. See paragraph 187 for 

detailed information.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8-8 
Par. 144 

144 Lien Searches (Continued) 

D Liens on FSFL Structure 

If the chattel lien search identifies other liens on the collateral before CCC filing, County 

Office must obtain lien waivers. CCC-190 (Exhibit 56) shall be used. 

Example: If CCC is taking a lien on handling equipment, and the chattel lien search 

indicates another lender has a lien on the equipment, obtain CCC-190 from the 

other lender. 

E Land Already Encumbered 

CCC’s security interest in the collateral, such as the actual storage structure, shall constitute 

the sole security interest in collateral. 

If CCC requires a first lien and the real estate is already encumbered or subject to a prior lien, 

the County Office shall advise the closing agent that a subordination agreement shall be 

obtained and recorded making CCC’s lien a first lien on the real estate where the facility is to 

be located. This information will be provided to the closing agent in the letter discussed in 

subparagraph 187 F. 

Exception: See subparagraph 121 B. 

CCC-194 (Exhibit 57) is a subordination agreement that may be used for FSFL purposes. 

State Offices may develop their own subordination agreement in consultation with their 

regional OGC. 

In addition, if there are prior liens on the underlying real estate to which the collateral is 

*--attached, County Offices shall obtain CCC-297 according to paragraph 196.--* 

145-152 (Reserved) 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 8-9 

Par. 153 

Part 9 FSFL Decision

153 Items To Be Reviewed for FSFL Approval 

A Responsibility

The approving authority shall determine: 

• whether the applicant meets all eligibility requirements

• whether the proposed facility or renovation is eligible and needed 

• whether the handling equipment and/or storage truck is eligible 

• whether the estimated yields and acreages to calculate the storage needs are reasonable

●*--whether an environmental review has been completed with a finding of no potential 

impacts or extraordinary circumstances which have not been resolved

• whether completion of the FSA-851 found environmental conditions or risk associated 

with the site that would impact value or place CCC at risk--*

• whether additional security is required according to paragraph 121 

Note: Based on authorization provided to STC’s in subparagraph 121 A, additional 

security may be required on a statewide basis for FSFL’s with an aggregate 

outstanding balance greater than $50,000.00. 

• the type of security to be required, including but not limited to, Letter of Intent to provide 

an Irrevocable Letter of Credit at loan closing

• concur with the valuation of the security according to subparagraph 122 B 

• the conditions of approval according to paragraph 156. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 9-1 
Par. 153 

153 Items To Be Reviewed for FSFL Approval (Continued)

B COC or CED/Farm Loan Approval Official Review

COC shall review all FSFL requests, except requests that have an aggregate outstanding 

FSFL balance of $25,000 or less and the STC has delegated authority to the CED or FSA

loan approval official. This review must be documented in the executive COC minutes.

Reminder: If COC is not meeting in the near future, County Offices should use the 

provisions in paragraph 12 to expedite processing the FSFL request.

See paragraph 10 for the appropriate loan approval authority. If FSFL is not within COC

loan approval authority, follow the appropriate guidance in subparagraph C or D. 

C DD or State Office Designee Review Before COC Review

DD or State Office designee with loan approval authority shall, before approval by COC, 

review CCC-185 where the total aggregate outstanding FSFL balance is equal to $100,000.01 

to $250,000. If the review: 

• reveals discrepancies or errors, the file shall be returned to the County Office for 

correction

Note: After corrections have been made, DD or State Office designee shall again review 

the file.

• is acceptable, a statement similar to the following shall be entered in CCC-185D, item 5: 

“After reviewing the completed documents and reviewing the financial documents, 

I concur with the recommendation of the [insert as applicable, FLM, FLO, or SFLO], 

concurring with the financial ability of the applicant, and I also recommend [insert as 

applicable, approval or disapproval] of FSFL to COC.” 

Note: DD or State Office designee shall sign and date the statement. 

After DD or State Office designee review, COC shall review FSFL and sign CCC-185D. 

The FSFL approval date will be the date COC approves FSFL after DD or State Office 

designee review. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-2 
Par. 153 

153 Items To Be Reviewed for FSFL Approval (Continued)

D STC Review

STC or STC-delegated SED only is the approval authority for an individual FSFL with a 

total aggregate outstanding FSFL balance of $250,000.01 or greater. 

STC or STC-delegated SED shall approve or disapprove the following: 

• CCC-185’s with a total aggregate outstanding FSFL balance of $250,000.01 or greater

• biomass CCC-185’s 

• CCC-185’s where STC has set other limitations for COC approval. 

County Offices shall forward to the applicable reviewing or approving officials the 

following: 

• original case file, including the complete CCC-185 with documentation to support the 

determinations in subparagraph A 

• an ArcGIS map layout of the proposed site where the facility will be located identifying 

roads and other key points 

• written recommendation from COC: 

• advising if FSFL should be approved 

• suggested commodity yield for eligible perishable commodities and renewable 

biomass commodities 

Note: It is recommended that alternative options for in-person COC meetings according 

to paragraph 12 be utilized to prevent delays of approval. 

• recommendation in FBP, FSFL Credit Presentation from individual conducting the 

financial analysis about the applicant’s credit history, ability to repay, and type of 

security. 

Before STC or SED review, DD or State Office designee with loan approval authority shall 

also review all FSFL’s where the borrower’s total aggregate outstanding FSFL balance is 

over $250,000 before STC or SED review. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-3 
Par. 154 

154 FSFL Approval 

A Documenting FSFL Approval

If the decision is to approve FSFL after the review in paragraph 153 is complete and all 

discrepancies are corrected, the appropriate approving official shall:

• complete CCC-185D, items 3 through 10A according to Exhibit 58 

• approve FSFL with signature and date in CCC-185D, items 10B and 10C 

Note: County Office employees shall develop FSFL conditions as explained in 

paragraph 156. By approving CCC-185D, the appropriate approving official is 

concurring with these FSFL conditions. 

• document the determination in the executive COC and/or STC minutes, as applicable.

Note: If the FSFL is within the loan approval authority of a CED or FSA loan approval 

official for FSFL’s with an aggregate outstanding balance of $25,000 or less 

according to subparagraph 10 B, the COC will be informed at the next COC 

meeting that this loan was approved. 

If STC is the approval authority, after approval return the case file to the County Office for 

FSFL processing, disbursement, and servicing. 

B Renewable Biomass FSFL’s

STC is the approval authority for all renewable biomass FSFL’s. The following information 

must be immediately submitted by the State Office after STC approval to Toni Williams by 

e-mail to toni.williams@wdc.usda.gov: 

• resale collateral value for which the facility is approved 

• type of storage approved 

• capacity of the storage facility

• county and FSFL number 

• total FSFL amount approved. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-4 
Par. 154 

154 FSFL Approval (Continued)

C Processing FSFL Approvals 

After CCC-185D is approved, County Office shall: 

• ensure the FSA employee with loan approval authority update the FBP, Credit Action to

 *--“Approved” according to the Farm Business Plan User Guide--*

Note: It is critical that the FBP, Credit Action be updated to “Approved” immediately 

after STC or COC approval because the monthly interest rate will not be properly 

applied to FSFL if the credit action is not timely updated. 

• enter approval date in DLS according to 2-FSFL, paragraph 302 

Note: If in CCC-185, item 3D, partial and final disbursements are requested, enter the 

approval date and amount for each FSFL. 

• immediately after entering approval in DLS, the FSFL will be obligated

Note: If in CCC-185, item 3D partial and final disbursements are requested, obligate 

each FSFL immediately on approval. 

• after the requested funding has been received in the County Office, notify the borrower of 

FSFL approval as directed in paragraph 13 using Exhibit 7. 

The borrower shall not be notified of FSFL approval before the funding obligation is 

received in DLS.

D Distribution of CCC-185D 

County Offices shall: 

• retain the original in the FSFL folder 

• mail a copy to the FSFL applicant with the Approval Notification Letter (Exhibit 7).

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 9-5 
Par. 155 

155 FSFL Disapproval 

A Documenting FSFL Disapproval 

If the decision is to disapprove FSFL after the review in paragraph 153 is complete and all 

discrepancies are corrected, the appropriate approving official shall:

• in CCC-185D, item 6A, select “Disapproved”

• in CCC-185D, item 6B, ENTER “0”

• disapprove FSFL by signing CCC-185D 

• document the determination in the executive COC and/or STC minutes, as applicable. 

 *--If STC is the approval authority, after disapproval return the case file to the County Office--*

for disapproval processing. 

B Processing FSFL Disapproval 

After CCC-185D is disapproved by COC or STC, County Office shall: 

• send the producer the Adverse Determination Notification Letter (Exhibit 8) according to 

paragraph 13 

Note: Include appeal rights according to 1-APP.

• enter COC, DD, or STC disapproval date, as applicable, in DLS according to 2-FSFL, 

paragraph 303 

• if the producer appeals the decision, track the appeal in DLS according to 2-FSFL, 

paragraph 303. 

C Distribution of CCC-185D 

County Offices shall: 

• retain the original in the FSFL folder 

• mail a copy to the FSFL applicant with the Adverse Determination Letter (Exhibit 8).

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 9-6 
Par. 156 

156 Conditions of FSFL Approval 

A FSFL Conditions

Conditions of approval will include actions that must be taken or documents that must be 

provided before disbursement as required by STC, COC, or other approving authority. 

 *--Note: Conditions of approval must not include eligibility determinations or actions related 

to the environmental review for NEPA compliance.--* 

Loan approval official must complete CCC-185D, items 3 and 4 for items required

according to Exhibit 58. 

Additional FSFL conditions must be entered in CCC-185D, item 5, “Remarks”. Examples of 

additional FSFL conditions are provided in subparagraphs B through H. 

See paragraph 157 for information about waivers of insurance requirements.

B Real Estate Appraisal 

Subparagraph 122 B allows approval of CCC-185D conditional on a real estate appraisal.

If this is applicable, FSFL condition must be documented in CCC-185D, item 5. 

C Irrevocable Letter of Credit

If the producer is providing an Irrevocable Letter of Credit to secure FSFL, CCC-185D, 

item 4 should be noted that the Irrevocable Letter of Credit must be received before FSFL 

closing. 

D Costs for Closing Agent 

If a real estate lien is required, inform the applicant that they must obtain an attorney, or 

that a title company is required, for title clearance. The attorney or title company shall 

perform all real estate lien searches. Costs shall be paid by applicant.

E Signature Requirements

Signature requirements for individuals and entities vary by State law. See paragraph 185 for 

State guidance on signature requirements. If additional parties will be required to sign the 

closing documents, the applicant should be advised in CCC-185D, Item 5. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 9-7 
Par. 156 

156 Conditions of FSFL Approval (Continued)

F Voluntary Increased Down Payment 

*--According to subparagraph 196 B, the applicant may increase the down payment from--* 

15 percent to 20 percent, and CCC-297 will not be required. If applicants request this 

option, FSFL condition must be noted in CCC-185D, item 5. 

Authorization is not provided to increase the FSFL micro loan down payment to 20 percent 

to avoid the CCC-297 requirement. 

G Proof of Final Cost 

After construction has been completed, the applicant shall submit final cost documents. In 

addition, CCC-197 and CCC-191’s are required to calculate the final cost of the FSFL 

project.

H Security Requirements

FSFL’s state specific requirements for security. If the lien search is completed before closing 

and it is determined CCC is not currently in the correct lien position, CCC-190, CCC-194, 

and/or FSA-2319 may be needed. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 9-8 
Par. 157

157 Insurance Waivers

A Multi-Peril Crop Insurance, NAP, or Dairy Coverage Waivers

COC may waive the multi-peril crop insurance, NAP or dairy program coverage requirement 

for FSFL’s with an aggregate outstanding FSFL balance of $100,000, or less if:

• it is too late for the producer to obtain multi-peril crop insurance or program coverage for 

the crop year

• the producer did not realize or forgot to purchase multi-peril crop insurance or program

coverage for the crop year.

STC has authority to establish a more restrictive policy on a Statewide basis.

The waiver may apply to both of the following:

• a prior crop year

• current crop year.

After COC has made a determination, County Offices must:

• enter the following statement in CCC-185, item 14:

“I agree to purchase the required insurance for loan commodities during the next 

available sales period. I understand that my failure to meet this requirement will be 

construed as a program violation.”

• ensure that producers initial and date the statement in CCC-185, item 14 to signify that 

the statement will be complied with and is understood

• maintain a copy of the determination and statement in the FSFL folder and ensure that the 

determination is documented in COC minutes.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-9
Par. 157 

157 Insurance Waivers (Continued)

B Waiver for Commodities Not Being Stored in Structure

For commodities not being stored in the structure and the aggregate outstanding FSFL 

balance is $100,000 or less, STC’s may authorize COC’s to determine whether multi-peril 

crop insurance is required for all commodities produced by the producer. For additional 

guidance, see paragraph 96. 

If it is determined that multi-peril crop insurance is not required for commodities not being 

stored in the structure, COC is not authorized to allow the producer to store the uninsured 

commodity in the storage structure during the FSFL term. Contact the National Office for 

questionable situations. 

If approved by COC, the County Office must have the applicant initial and date the 

following statement in CCC-185, item 14: 

“I understand that I am not authorized to store my [enter commodity] production in the 

structure during the FSFL term.”

C Multi-Peril Crop Insurance or NAP Coverage Waivers for Hay Producers

For hay producers, STC’s are authorized to waive, on a case-by-case basis, multi-peril crop 

insurance or NAP coverage if both of the following apply: 

• aggregate outstanding FSFL balance is $100,000 or less 

• multi-peril crop insurance or NAP coverage insurance cost for producer will range 

between $500 and $750. 

In place of the multi-peril crop insurance or NAP coverage, hay producers must obtain and 

maintain all-peril structural insurance on the hay stored in the FSFL structure.

The hay producer must annually submit, in writing to the County Office, a request to waive 

the multi-peril crop insurance or NAP coverage. STC will determine, on a case-by-case 

basis, if the request will be approved.

The producer’s request and waiver determination must be maintained in the FSFL folder and 

documented in STC or COC meeting minutes. 

STC has authority to establish a more restrictive policy and is authorized to redelegate 

authority to COC only for provisions provided in this subparagraph. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-10 
Par. 157 

157 Insurance Waivers (Continued)

D Multi-Peril Crop Insurance, NAP, or Dairy Coverage Waivers for Eligible Perishable 

Commodity Producers

For eligible perishable commodity producers, STC’s are authorized to waive, on a case-bycase basis, multi-peril crop insurance, NAP, or dairy coverage if both of the following apply: 

• aggregate outstanding FSFL balance is $100,000 or less 

• producer produces a minimum of 3 different eligible perishable commodities.

The eligible perishable commodity producer must annually submit, in writing to the County 

Office, a request to waive the multi-peril crop insurance, NAP, or dairy insurance coverage. 

STC will determine, on a case-by-case basis, if multi-peril crop insurance, NAP, or dairy 

insurance coverage is or is not feasible for the eligible perishable commodity producer. 

STC or designee may waive for the FSFL term, on a case-by-case basis, the dairy insurance 

coverage requirement, when the insurance coverage according to subparagraph 96 A cannot 

be obtained. 

When determining feasibility, STC should take into account a variety of factors, including 

but not limited to:

• number of crops 

• typical area planted to each crop

• whether the producer markets the products in a way that commands a price premium 

above traditional markets; for example, direct-to-consumer; through a food hub; to a local 

restaurant certified organic, etc.

The producer’s request and waiver determination must be maintained in the FSFL folder and 

documented in STC or COC meeting minutes. 

Note: STC has authority to establish a more restrictive policy and is authorized to 

redelegate authority to COC only for provisions provided in this subparagraph. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-11 
Par. 157

157 Insurance Waivers (Continued)

E All-Peril Structural Insurance Waivers

STC has authority to establish a more restrictive policy and is authorized to redelegate 

authority to COC to waive the all-peril structural insurance requirement, on a case-by-case 

basis, for the term of FSFL, if the aggregate outstanding FSFL balance is $100,000, or less, 

and either of the following applies:

• it is determined the storage structure cannot be insured with all-peril structural insurance

• storage structure is a concrete bunker silo and there is no chance of loss from fire or other 

hazardous risks.

The waiver determination must be maintained in the FSFL folder and documented in STC or 

COC meeting minutes.

A hoop building must be insured with all-peril structural insurance to be considered eligible 

for FSFL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-12
Par. 158 

158 Approval Extensions 

A Extensions That May Be Granted 

Based on the date the FSFL obligation appears in the system, CCC starts paying interest to 

Treasury on the obligated funds. Therefore, it is important that FSFL construction projects 

are completed timely and FSFL’s are closed. However, extensions are permitted if 

necessary. 

FSFL approvals expire 6 months after the date of approval. See subparagraph 14 A for 

approval authorities to grant extensions. See subparagraphs E and F for extensions beyond 

12 or 18 months. 

Extensions become necessary only if the applicant has not completed construction or has not

submitted all documentation required to disburse FSFL. Delays in disbursing FSFL within 

the control of CCC, such as obligation of funds and the need for additional lien waivers 

discovered during the lien search, does not require a request for an extension from the 

applicant. 

FSFL must not be disbursed with an expired FSFL approval date. If all documentation to 

disburse FSFL is received in the County Office and date-stamped before the FSFL expiration 

date, FSFL may be disbursed. 

B Expiration Reminder Notification to Applicant 

County Office must establish a follow-up system to remind the applicant of the FSFL 

approval expiration. 

County Offices shall notify applicants by phone, e-mail, or letter, 14 workdays before the 

expiration date that, if necessary, the applicant must request an extension in writing. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9-13 
Par. 158 

158 Approval Extensions (Continued) 

C Applicant Request for Extension 

If an extension is being requested, the applicant must: 

 submit a written request for an extension within 7 calendar days of notification by the 

County Office or the FSFL approval period expiration date, whichever is later 

Note: Extensions may be approved after the FSFL approval expiration date, if the 

request for the extension was made in a timely manner. 

*--if the reason for the extension is the builder/contractor changed, provide a binding--*

contract, signed by the applicant and supplier, proving there is a purchase commitment 

 provide evidence that CCC-185 was made in good faith 

 provide evidence that lack of completion is because of reasons beyond their control. 

Examples: The following are examples of reasons beyond the applicant’s control: 

 bad weather conditions 

 delays in the delivery of parts 

 lack of necessary skilled labor 

 legal delays involving: 

 contractor discrepancies 

 real estate liens 

 regional OGC opinions. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 9-14 
Par. 158

158 Approval Extensions (Continued)

D Review of Applicant Request for Extension

STC’s, delegated SED’s, or COC’s shall:

• grant the extension only if the applicant meets the requirements in subparagraph C

• grant extensions only for the time necessary to complete the FSFL project

• not grant automatic extensions

• if determined an extension will be granted, approve extensions on CCC-185D, item 8B or 

8C, by notating the next expiration date.

E Requests for Extensions Beyond 12 Months

See subparagraph 185 F for a required financial review if FSFL closing has been delayed for 

more than a year.

STC’s only are authorized to grant extensions of FSFL approvals beyond 12 months, not to 

exceed 18 months from the date of the original approval. This authority may not be 

redelegated.

STC’s must use discretion when approving extensions beyond 12 months, not to exceed 

18 months of the original FSFL approval date.

* * *

F Requests for Extensions Beyond 18 Months

DAFP waiver is required for extensions beyond 18 months of the original FSFL approval 

date.

159-169 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 9-15
.
Par. 170 

Part 10 Final Review of Documents 

170 Disbursements 

A General Information for FSFL Disbursement 

 *--All FSFL projects must be inspected using CCC-295A for (permanently affixed) and/or 

CCC-295C for (portable equipment) before disbursement.--* 

Actions required in Parts 10 and 11 shall be completed for both a partial and final 

disbursement. 

B Evidence of Total Cost 

The disbursement will be made only if the borrower provides satisfactory evidence of the 

following: 

 total cost of the facility, handling equipment, and/or storage and handling truck as 

evidenced by completed and signed CCC-191’s from all contractors, dealers, suppliers, 

and vendors 

 payment of all debts on the collateral in excess of FSFL amount 

 required down payment. 

This is applicable to both partial and final disbursements. 

The FSFL Disbursement Calculator and CCC-197 should include all CCC-191’s received 

from contractors, suppliers, and vendors. 

C Purchasing Portable Storage Structures, Drying and Handling Equipment, and Storage 

and Handling Trucks 

The applicant may complete the purchase of the portable storage structures, drying and 

handling equipment and storage and handling trucks at any time after loan approval. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 10-1 
Par. 170 

170 Disbursements (Continued) 

D Disbursement for Portable Storage Structures, Drying and Handling Equipment, and 

Storage and Handling Trucks 

The minimum down payment is required prior to closing the FSFL. CCC-191’s are required 

for the minimum down payment (plus any voluntary additional amount paid) prior to closing. 

The disbursement calculator will be prepared utilizing the acceptable dated statement with 

the intent to purchase and/or sales contract/order. 

The FSFL may be disbursed before the FSFL components are acquired or purchased. If 

FSFL funds are being disbursed to complete the acquisition or purchase, inform the producer 

the following must be returned to the County Office within 15 workdays after the closing of 

the FSFL: 

 a signed and dated original sales receipt for the purchase, including the seller’s name, 

address and contact number 

 for storage and handling trucks: 

 provide automobile insurance policy, according to paragraph 98 

 proof that the emission and/or vehicle inspection was successfully performed, as 

required in the State 

 proof that sales tax, registration fee and other applicable MVA fees were paid 

 certificate of title and lien release, if applicable. 

Note: On a case-by-case basis, the borrower may request in writing, an extension of 15 

workdays, but no more than 30 workdays, to provide to FSA the applicable 

documents for the purchase of the portable storage structure, drying and handling 

equipment, and/or storage and handling trucks. 

Example: Producer Clark is purchasing a used grain auger. The producer submitted the 

FSFL request and sales order for the used grain auger in the amount of $10,500, 

in the County Office on November 7, 2017. A financial analysis was performed 

by an FSA employee with loan approval authority. A recommendation is 

received from an FSA employee with loan approval to approve the FSFL request. 

The STC designated the CED approval authority to approve the FSFL request. 

The producer is notified of the approval, a closing date, and the amount of the 

minimum down payment required to be paid to the dealer or seller prior to 

closing. The producer visits the County Office to close the FSFL. The FSFL is 

disbursed. Producer Clark is instructed to return to the FSA County Office the 

original sales receipt for the purchase of the used grain auger within 15 workdays 

after the closing of the FSFL. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-2 
Par. 170 

170 Disbursements 

D Disbursement for Portable Storage Structures, Drying and Handling Equipment, and 

Storage and Handling Trucks (Continued) 

If the signed and dated original sales receipt is not returned to the County Office within 15 

workdays after the closing of the FSFL and the producer did not request, in writing, an 

extension, a receivable must be established for the FSFL and the FSFL must be accelerated. 

E Partial Disbursements 

According to paragraph 57, on CCC-185, item 3D, applicants select whether FSFL will be 

disbursed in “Partial/Final” or “Final” disbursement. 

County Office employees must inspect the FSFL project before the partial disbursement and 

determine whether the completed part of the FSFL project is commensurate with the partial 

*--disbursement amount. The applicable CCC-295A or CCC-295C must be used to document 

the inspection before the partial or final disbursement.--* 

Example: The following example explains the maximum amount of the partial disbursement 

allowed. 

FSFL is approved for $110,000. The applicant completes the site preparation, 

foundation, and the outer shell of the steel bin. Bills are presented to the County 

Office for $60,000. The bills presented are over half the approved total FSFL 

amount. The maximum partial disbursement the borrower can receive on this 

FSFL is $55,000. Although additional security is required for $110,000 before

the final FSFL disbursement, only the UCC-1 filing is required for the $55,000 

partial disbursement. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 10-3 
Par. 170 

170 Disbursements (Continued) 

F Final Disbursements 

CCC will disburse FSFL or make the final disbursement when: 

 the entire collateral has been: 

 assembled, constructed, installed, or acquired/purchased, 

 inspected and approved by County Office representative 

 determined to be free of liens other than CCC’s by a final lien search according to 

paragraph 144 

 all security requirements have been met. 

The final FSFL disbursement must subtract all grants and loans on the same structure from 

any Federal Government Agency according to paragraph 61. 

Example: RD grants and loans. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-4 
Par. 171 

171 Inspection 

A Inspection and Approval of Facility Construction 

County Offices shall: 

 inspect the facility before the partial and final disbursements 

 document results of the partial and final inspections in the FSFL folder on CCC-295A 

 *--and/or CCC-295C. 

 Note: If both partial and final disbursements are requested, CCC-295A and/or 

 CCC-295C for each disbursement is required.--* 

B Safety Guidelines 

FSA is committed to providing a safe environment for employees who: 

 inspect newly constructed storage facilities 

 perform inspections of existing storage facilities. 

Employees shall follow safety practices according to 5-LP, paragraph 89. In addition, 

observe the following guidelines when performing initial and annual FSFL inspections: 

 do not climb stairs or ladders, unless it is necessary to visually locate handling equipment 

that will be collateral for FSFL and the equipment can be safely inspected 

 if climbing stairs or ladders is necessary, use proper safety equipment, if available 

 if handling equipment cannot be located, verify installation with the borrower 

 do not attempt to locate serial numbers for equipment that is inaccessible or not in a safe 

location 

*--document unsafe conditions on CCC-295A or CCC-295C that should be fixed by the--* 

 borrower, such as loose ladders. 

C Inspection of Portable Storage Structures, Drying and Handling Equipment and 

Storage and Handling Trucks 

If accessible, a County Office employee must evaluate the equipment and handling 

component at the location provided on the FSFL request and purchase contract/order. 

Note: For questionable situations, contact the National Office. 

Use CCC-295C to document the complete description of the portable structure, equipment 

and/or storage and handling truck with identifiable numbers and odometer reading, if 

available. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 10-5 
Par. 171 

171 Inspection (Continued) 

D Example of CCC-295A 

The following is an example of CCC-295A. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-6 
Par. 171 

*--171 Inspection (Continued) 

E Example of CCC-295C 

The following is an example of CCC-295C. 

--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 10-6.5 

(and 10-6.6) 
. 
Par. 172 

172 Final Review of Cost Documents 

A Acceptable Cost Documents 

County Offices shall review: 

 final evidence of total cost 

 proof of down payment 

Note: CCC-191’s, signed and dated by the contractor or seller with the amount of the 

down payment listed in items 3(a) and 3(b), are considered proof of down 

payment. 

 payment of amounts in excess of FSFL. 

CCC-191’s are required when an Irrevocable Letter of Credit is used to secure FSFL. 

B Examples of Acceptable Evidence 

The following are examples of acceptable evidence of cost documents: 

 a sales document or receipt 

 a certification 

 a receipt 

 copies or facsimiles of documents 

 a canceled check that is supported by a signed and dated sales document. 

Notes: All acceptable evidence must be signed and dated by the contractor or seller if

evidence is not on the original letterhead or stamped with the company’s seal. 

When a signature and date are required, initials are not acceptable. 

The amount of the final invoice or bill must not be included in the FSFL amount and FSFL 

shall not be disbursed if CCC-191 is not: 

 properly completed 

 supported with acceptable evidence 

 signed and dated, if applicable. 

Notes: Releasing liability exceptions policy according to subparagraphs 173 B and C applies. 

Although CCC-191’s are waived according to subparagraphs 173 B and C, the 

eligible cost must be included on the FSFL Disbursement Calculator, CCC-197, and 

acceptable evidence of the eligible cost is required. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-7 
Par. 172

172 Final Review of Cost Documents (Continued) 

C County Office Action 

County Offices shall: 

 date-stamp the original evidence, make a copy for the FSFL folder, and return the 

original evidence to the borrower 

 request the applicant to provide, within 10 calendar days, any additional information or 

documentation considered necessary to support costs or down payment 

 verify evidence with the contractor or seller, if necessary 

 discuss and obtain approval from COC/STC or State Office designee, any questionable 

evidence or costs. 

D Trade-In Allowances 

County Offices may not allow trade-in allowances. 

Example: The borrower has an old grain dryer valued at $1,000 to: 

 trade in to the storage bin distributor 

 use towards the down payment. 

The value of the old grain dryer cannot be used towards the down payment for 

FSFL.

Questionable situations must be discussed with the State Office, and when necessary, State 

Office may contact the National Office for additional guidance. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 10-8 
Par. 173

173 CCC-191

A Releasing Liability

CCC-191 is necessary to protect CCC and the FSFL applicant from the following:

• mechanics or other liens

• claims arising against the contractor or subcontractors.

County Offices shall obtain CCC-191’s for all FSFL construction projects from the 

following:

• primary contractor who either constructs or subcontracts all aspects of the facility 

construction and presents 1 bill to the applicant for the entire FSFL project

• all contractors and suppliers providing separate bills for supplies, work, or services 

performed in the construction of FSFL, whether their part of the project is included in the 

final amount of FSFL.

Only one CCC-191 is required from each contractor supplying goods or performing services 

for each FSFL disbursement. A new CCC-191 is required from the contractor if the 

contractor has presented bills for both the partial and final disbursement.

CCC-191 is required for purchases of storage and/or handling equipment or handling trucks 

to document receipt of the required down payment and if there is an outstanding payment due 

to the contractor and/or supplier.

CCC-191 on file does not have to reflect that the total amount of the bill has been paid. 

CCC-191 can show a partial or no payment has been made.

Example: The borrower paid the cement contractor the required 15 percent of the total 

cement bill as reflected in their total, final bill. The 15 percent is entered in 

CCC-191, items 3 (a) and (b). Because the cement contractor has not been totally 

paid, FSFL disbursement was made to the borrower and cement contractor. A 

new CCC-191, following disbursement with the contractor’s name on the check, 

is not required from the contractor.

If the supplier and/or contractor did not receive payment, the County Office must notate in 

CCC-191, item 3 (a) that no payment was made and the FSFL disbursement must be joint to 

the producer and supplier and/or contractor.

CCC-191 will not be required for some exceptions. See subparagraph B.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-9
Par. 173

173 CCC-191 (Continued)

B Releasing Liability Exception for Purchases of Supplies up to $3,000 

STC is authorized to approve an exception to current CCC-191 policy, on a statewide basis, 

under specified conditions. 

Note: STC can only delegate this approval to SED, or DD. 

The specified conditions include all of the following: 

• eligible supplies are from a retail establishment, suppliers and/or vendors, including online internet purchases

Note: CCC-191 contains a release of liability and will still be required from anyone 

performing work on the structure with no exceptions to the cost. 

Example: The total bill for the electrician to wire the fans in a grain bin totals $1,100. 

CCC-191 is required because the bill includes services.

• total sales receipts from retail establishments is $3,000 or less 

Example: A producer has bills from Lowe’s for $1,550 and an electrical supply store for 

$1,600. CCC-191 waiver can only be requested for 1 of these bills because 

together the total is over $3,000. Both bills were paid using checks. DAFP 

waiver for the other bill will be required. 

• dated sales receipt, identifying all eligible items and costs, indicating method of payment. 

C Releasing Liability Exception for Credit Card Purchases

STC’s are authorized to approve a waiver of the CCC-191 requirement, on a statewide basis, 

if the amount of the invoice or sales receipt for eligible FSFL components were paid in full 

by credit card. The statewide waiver must be documented in the STC meeting minutes. 

*--D Releasing Liability Exception When an Irrevocable Letter of Credit is Provided

STC’s are authorized to approve a waiver of the CCC-191 requirement, on a Statewide basis, 

if the full FSFL amount will be secured with an Irrevocable Letter of Credit. The invoice or 

sales receipt of eligible FSFL components must provide the payment made for the eligible 

components so that the required down payment can be calculated and joint payee checks may 

be requested, if necessary. The Statewide waiver must be documented in the STC meeting 

minutes.

Note: The Irrevocable Letter of Intent or Guarantee must be on file according to Exhibit 69 

for the option to be used.--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 10-10 
Par. 173

173 CCC-191 (Continued) 

 *--E Example of CCC-191

The following is an example of CCC-191. 

Note: If no payment was received the “no payment” box should be selected and zero dollars 

should be recorded in items (a) and (b).

--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 10-11 
Par. 174

174 CCC-197 

A Overview

CCC-197 is available to assist FSA in identifying federal grant and loan recipients before

preparing FSFL documents for the final closing of FSFL. All eligible costs shown on 

CCC-197 will have CCC-191, unless not required based upon the release of liability 

exception in subparagraphs 173 B and 173 C, and will be listed on the applicable FSFL 

Disbursement Calculator. 

After completing CCC-197, FSFL borrowers will: 

• identify all bills and invoices for the entire structure

• identify all other sources of funding for the FSFL structure

• sign and date a certification statement certifying that a request or application has not been 

submitted, approved, or paid by any Federal Government grant or loan on the same 

structure or other collateral used for this FSFL. If a grant or loan is received after FSFL 

is disbursed for the same structure, the grant or loan must be paid as a lump sum payment 

and applied to the outstanding FSFL. 

B When to File 

CCC-197 must be filed in the County Office when final evidence of total cost is submitted, 

according to paragraph 172. 

County Offices shall: 

• assist the applicant in manually completing CCC-197 according to Exhibit 64 and obtain 

the applicant’s signature 

• discuss examples of acceptable evidence and CCC-191 requirement, if applicable, 

according to paragraph 173. 

C Approving CCC-197’s 

STC, COC, or designee shall approve CCC-197’s only after CCC-197 is completely filed and 

all acceptable evidence is submitted, according to paragraph 172. 

D Maintaining CCC-197’s 

CCC-197’s shall be completed and maintained in the producer’s FSFL file folder.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-12 
Par. 175

175 Disbursement Calculator

A Calculating Final FSFL Costs

The FSFL Disbursement Calculator was created to assist State and County Offices in 

calculating the final FSFL project costs and down payment needed for FSFL.

When all final bills are received as evidenced by CCC-191’s, CCC-197 and/or supporting 

documentation, County Offices must access the FSFL Disbursement Calculator in DLS, and 

enter the appropriate information to document and calculate the final FSFL project costs and 

FSFL down payment for a partial or final disbursement.

County Offices must complete in DLS and:

• attach a printout of the completed FSFL Disbursement Calculator to CCC-197

• file an FSFL Disbursement Calculator printout in the producer’s FSFL file folder before

a partial or final FSFL is disbursed.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-13
Par. 175

175 Disbursement Calculator (Continued)

B Manual FSFL Disbursement Calculator

Manual calculation must only be used when the FSFL Disbursement Calculator is 

unavailable in DLS.

The FSFL Disbursement Calculator:

• must be accessed and completed on a computer running Microsoft Excel 2007 or later 

software

• is available from the PSD web site located at

http://www.fsa.usda.gov/programs-and-services/price-support/Index. Under 

“Additional Resources”, CLICK “Farm Storage Facility Loan Disbursement 

Calculator (Excel)” or “FSFL Microloan Disbursement Calculator (Excel)”.

The PSD web site has two FSFL Disbursement Calculators available. One is for a 5 percent 

down payment for microloans. The other is for the minimum 15 percent down payment for 

regular FSFL’s. State and County Offices must assure the correct disbursement calculator is 

used. 

 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-14
Par. 176

176 Determining Final FSFL Amount and Making Changes to FSFL Amount

A Calculating FSFL Amount

Because the exact amount of the partial and final FSFL disbursements cannot be determined 

before the FSFL project is completed, it may be necessary to increase or decrease the 

approved and obligated amounts for each FSFL when the total for each disbursement has 

been determined.

County Offices shall calculate the amount to be disbursed according to paragraph 175.

B Increase in FSFL Amount

If FSFL amount increases, County Offices shall:

• obtain reconsideration of financial analysis by an FSA employee with loan approval 

authority and by the applicable approving authority identified in subparagraph 10 B, if 

final review indicates that:

• final costs exceed the amount on which the original approval was based

• final documentation includes items not in the original approval

Example: FSFL for $95,000 was originally approved by COC. Final costs indicate that 

the new FSFL amount will be $101,000. DD review is required before COC

can approve the additional FSFL amount.

Exception: A financial analysis is not required if the loan will be secured entirely with 

an Irrevocable Letter of Credit, unless it is required by STC. A Letter of 

Intent should have accompanied the FSFL request providing an 

Irrevocable Letter of Credit will be provided before closing to secure the 

entire FSFL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10-15
Par. 176

176 Determining Final FSFL Amount and Making Changes to FSFL Amount (Continued)

B Increase in FSFL Amount (Continued)

• if an increase of up to 10 percent of FSFL is requested by the borrower after FSFL has 

been approved, a new financial analysis is not required, unless it is required by STC

Note: The applicable approving authority could review the increase request without a 

new financial analysis.

• if the approving authority determines the borrower is eligible for the increased FSFL

amount, document this in COC or STC minutes

• in CCC-185D, complete Part B, Items 11 A through 12 C

• request additional funding according to 2-FSFL, subparagraph 351

Note: The interest rate does not change.

●*--document the increase or decrease of the FSFL amount on the CCC-185 and CCC-185D 

and have the contact producer initial and date the change(s).--*

C Change in FSFL Term

The borrower may request to change the FSFL term before the final FSFL disbursement if:

• the final FSFL amount qualifies for a different FSFL term

• a new financial analysis indicates the annual payments will be manageable.

Documentation supporting the longer FSFL term must be maintained in the FSFL folder.

177-184 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 10-16
Par. 185 

Part 11 Closing FSFL’s 

Section 1 Finalizing FSFL’s 

185 Required Final Actions 

A Completed CCC-195, CCC-195A, and/or CCC-195B Requirement 

County Offices shall ensure that CCC-195, CCC-195A (real estate security), and/or 

CCC-195B (no real estate security) are properly completed before closing a partial or final 

FSFL. 

All required actions to finalize FSFL’s secured with or without real estate security are 

provided on CCC-195A and CCC-195B. See paragraph 74 and Exhibits 29, 30, and 31 for 

completing required FSFL checklists. 

B Verify Loan Conditions Met 

Before closing FSFL, County Office employees shall verify that FSFL conditions as stated 

on the approved CCC-185D have been met. 

C Real Estate Taxes 

If real estate is taken as additional security, County Office: 

 must verify that real estate taxes have been paid 

 not disburse FSFL’s secured by real estate when real estate taxes are not current. 

D Final Lien Search Policy 

A final lien search is required before FSFL can be disbursed. For FSFL’s with no real estate 

security, State and County Offices are required to perform and record the final lien search 

within 5 workdays before the check is requested in DLS or FSFL closing. 

For FSFL’s with real estate security, see paragraph 187. 

For FSFL’s involving only purchase of storage and handling equipment and/or storage and 

handling trucks, the elapsed time from approval to loan closing may be much shorter. State 

and County Offices may be able to only order one lien search, provided it is within 5 

workdays before the check is requested in DLS or the FSFL closing. 

Notes: If an Irrevocable Letter of Credit will secure the entire FSFL, a lien search is not 

necessary, unless required by STC. 

 *--For FSFL’s being closed by an attorney or closing agent, a final lien search is not 

required by State and County Office employees. A final lien search will be 

performed and documented by the attorney or closing agent.--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 11-1 
Par. 185 

185 Required Final Actions (Continued) 

E Signature Requirements 

All members of a joint venture, including spouses if required by State law, must sign all 

FSFL security documents, and are jointly and severally liable for the entire debt. 

State supplements must provide guidance on signature requirements for promissory notes 

and security documents for other entities. 

F Closing Delayed More Than a Year 

If closing of FSFL is delayed for more than a year after FSFL approval, the financial analysis 

must be reassessed. County Offices must obtain an updated balance sheet and cash flow 

information. 

A financial analysis shall be conducted according to subparagraph 85 G. It is not necessary 

to complete a new FBP, FSFL Credit Presentation. The financial analysis will only verify 

there have been no adverse financial changes that would negatively impact down payment 

ability or the producer’s ability to repay FSFL. 

If it is determined that FSFL should not be closed because of financial changes, FSFL must

be reviewed by the applicable approving authority for a determination and, if necessary, an 

Adverse Determination Notification Letter must be provided according to 

subparagraph 13 C. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-2 
Par. 185 

185 Required Final Actions (Continued)

G STC or Designee Review Before Disbursement

FY’s begin on October 1 each year. STC or designee, as delegated by the STC, shall review 

the three FSFL’s scheduled for closing each FY, and before disbursement. For these 3 

reviews, a thorough review of FSFL documents must be completed. This review must be 

performed after all applicable checklist items have been completed and always before

disbursement. The file will need to be reviewed for this process. 

STC or designee as delegated by the STC shall:

• review three FSFL’s scheduled for closing each FY, before disbursement, at an 

administrative County Office regardless of the amounts requested

• document review in the FSFL folder, CCC-195 and CCC-195A or CCC-195B. In Item 

18 of CCC-195 and Item 13 of CCC-195A or CCC-195B, ENTER:

“This review was required according to 1-FSFL, subparagraph 185 G. All items of the 

CCC-195 and the CCC-195A/B through item 9 have been completed and any deficiencies 

resolved.” 

The designee will then sign and date the above statement. 

• indicate corrective action where necessary.

A County Office employee shall notate on CCC-195A or CCC-195B, Item 10A, that this 

review and remarks have been completed.

Additional reviews, including reviews following FSFL disbursement, may be conducted if 

determined necessary by STC.

186 Processing Check Requests

A Joint Disbursements

Disbursements shall be made jointly to the borrower and the contractor, supplier, or vendor 

as shown on CCC-191’s. 

Exception: Disbursement may be made solely to the borrower if the County Office 

determines the borrower has paid the contractor or supplier all amounts that 

are due with respect to the eligible drying and handling equipment, storage 

structure and/or storage and handling truck. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-3 
Par. 186

186 Processing Check Requests (Continued)

B Disbursement Process

All FSFL’s must be disbursed through DLS according to current FI notices and handbooks

1-FSFL and 2-FSFL. County Offices shall disburse FSFL by processing DLS “Check 

Request” according to 2-FSFL, Part 6.

The following 2 options are available for disbursing FSFL’s.

IF borrower 

has...

THEN order of completion

is... AND delivery of FSFL funds...

paid all

contractors and 

suppliers before

FSFL closing 

and FSFL does 

not require 

additional 

security

1. closing documents are 

signed

2. check request entered in 

DLS according to 2-FSFL

3. in DLS, ENTER “Close 

Loan” according to 2-FSFL

will be generated at the time of closing.

IF the borrower... THEN...

is set up for direct 

deposit

the funds will be 

sent EFT within 

the specified time 

allowed.

does not have direct 

deposit

a paper check 

will be mailed to 

borrower.

not paid all

contractors and 

suppliers in full 

before closing or 

if closing is held 

by a closing 

agent

1. check requests entered in 

DLS according to 2-FSFL

Note: Alternate payee is 

used for all payees.

2. closing documents executed

3. in DLS, ENTER “Close 

Loan” according to 2-FSFL

disbursement checks will be mailed to 

the County Office by NPS. On receipt 

of the checks, FSFL closing will be 

scheduled. Checks are made payable to 

supplier and borrower and provided at 

time of closing.

For either disbursement method, interest begins on the date of closing.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-4
Par. 186

186 Processing Check Requests (Continued)

C Monitoring Check Requests and FSFL Closings

If the applicant did not pay all bills and the County Office will request checks to have 

available at FSFL closing, the County Office must:

• monitor DLS to ensure that checks are received as requested

• schedule FSFL closing within 21 calendar days from the date of the check.

If the applicant paid all bills and 1 check request is entered to be paid directly to the 

applicant, the County Office must monitor DLS to ensure that the check has been processed.

If checks or FSFL transaction statements are not received by the County Office in a timely 

manner, County Offices must contact their State Office to determine the corrective action.

D Checks Ordered and Situation Changes

If check requests have been processed and situations change, follow this table.

IF... THEN...

applicant no longer wants FSFL follow 2-FSFL, subparagraph 400.5 D

to cancel the disbursement.

there will be a delay and FSFL will not be closed 

within 21 calendar days of the check date

State Offices should contact the 

National Office for guidance.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-5
Par. 187

187 Closing FSFL’s Secured by Real Estate

A Partial and Final FSFL Closings Using Real Estate as Additional Security

When real estate is used for the required additional security for the:

• partial disbursement, security applicable to the partial disbursement amount will be 

required before the partial disbursement FSFL closing

• final disbursement, security applicable to the total FSFL amount will be required before

FSFL closing.

Example 1: The following is an example of FSFL with both partial and final 

disbursements and the security required for each.

FSFL is approved for $110,000. Half the facility is constructed and a 

partial disbursement is requested for $55,000. UCC-1 has been filed on 

the structure, but additional security is not required when the $55,000 

partial disbursement is closed. When the final FSFL disbursement is 

made, additional security for both FSFL’s totaling $110,000 is required.

Example 2: The following is an example of FSFL with both partial and final 

disbursements where additional security is required.

FSFL is approved for $202,000. Half the facility is constructed and a 

partial disbursement is requested for $101,000. Additional security is 

required for the $101,000 partial disbursement and for the $101,000 final 

disbursement. The following options are available to the borrower:

• present 2 separate real estate mortgages, 1 for the partial disbursement 

and another for the final disbursement

• present 1 real estate mortgage to secure both the partial and final 

disbursement at the time of the partial disbursement, if possible 

according to the laws in the State.

Note: Check with the regional OGC to ensure this is possible.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-6
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

B Closing Agent Method

There are 2 common methods of obtaining the real estate title information and closing real 

estate FSFL’s, as follows.

Action Attorney Title Insurance

CCC-296 as explained in

subparagraphs D and E.

Insurance company provides 

closing protection letter.

Method of verifying 

liability insurance.

After adequate liability insurance is verified or closing protection 

letter received, the transmittal of title information is completed 

according to subparagraph F.

Lien search 

information obtained.

CCC-299 as explained in 

subparagraphs G and H.

Title insurance commitment or 

binder.

After a determination that title requirements can be met according 

to subparagraph I, the:

• borrower is notified of FSFL closing according to 

subparagraph J

• transmittal of FSFL closing documents is completed according 

to subparagraph K.

Verification of title 

after closing

CCC-299 as explained in

subparagraph L.

Title insurance policy.

Note: State Offices must issue a State supplement, if additional alternatives are available or 

clarify if the process is different than this table.

County Offices may utilize FSA-2340 for applicants to select the attorney or title agent.

County Offices shall direct applicants to request a title opinion when, in consultation with the 

regional OGC, the State Office determines that the usage of title insurance is not:

• available

• feasible for FSFL

• feasible for the State or the area of the State where FSFL will be closed.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-7
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

C Borrower Selection of a Closing Agent

Borrowers shall select closing agents. County Offices shall provide the borrower with the 

following letter, or a similar letter that is provided by the regional OGC, to:

• make clear who is to pay the closing costs

• provide a means for the FSFL borrower to request a title insurance policy from a title 

insurance company

• provide a means to request FSFL closing and related legal services from an attorney or a 

title company.

Date

________________, Attorney at Law

_________________ Street

City, State, and ZIP Code

Dear:

The undersigned hereby requests you to perform loan closing and other legal services in 

accordance with instructions and requirements of the Commodity Credit Corporation 

(CCC), including the disbursal of any funds that we are required to provide in connection 

with the transaction by CCC.

CCC is providing you a description of the real property to be mortgaged. It is understood 

that the closing cost is to be a reasonable figure to be set by you in accordance with your 

usual charges for comparable services.

Subject to that understanding, the undersigned loan applicant agrees to be responsible for 

payment of all closing costs.

It is understood that no liability or responsibility for payment of any portion of the closing 

cost is assumed by CCC or by a CCC representative or any officer, employee, or agency of 

the United States Department of Agriculture.

X___________________________

Borrower’s signature, name, and address

Enclosures: Copy of Deed / Legal description of RE property for mortgage

CCC-296, Farm Storage Facility Loan Program Certification of Attorney 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-8
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

D Example of CCC-296

If an attorney and title opinion will be obtained, County Offices shall require certification 

from the attorney selected for FSFL closings by using CCC-296, FSA-2342 or a similar form 

approved by the regional OGC.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-9
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

E Instructions for Completing CCC-296

County Offices shall complete CCC-296 according to the following table.

Item Instructions

1 Enter name of FSFL applicant.

2 Enter amount of FSFL.

3 Enter FSFL number, including FY.

4 Enter name and mailing address of the attorney selected by the 

applicant.

5A and 5B CCC representative shall sign and date before sending to the attorney.

(6a) through (6h) Selected attorney/closing agent shall complete items (a) through (c).

7A and 7B Selected attorney shall sign and date.

8 After CCC-296 is returned to the County Office, the CCC representative 

shall approve or disapprove the attorney’s completion.

9A and 9B CCC representative shall sign and date.

Note: CCC representative shall not approve CCC-296 if the attorney is 

not:

• in good standing with the State bar association

• covered by liability insurance.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-10
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

F Transmittal of Title Information

To transmit information and documents to approved closing agents or title insurance 

companies for title clearance and FSFL closing services, County Offices shall issue the 

following letter or a similar letter that is approved for use by the regional OGC.

Note: This letter is available on the FFAS Employee Forms/Publication Online Website in 

fillable format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK 

“Find Current Forms Using Our Form Number Search”. For “Form Number”, 

ENTER “1-FSFL Par 187F”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-11
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

F Transmittal of Title Information (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-12
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

F Transmittal of Title Information (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-13
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

G Requesting CCC-299

Title opinions shall be requested using the transmittal of title information in subparagraph F 

and CCC-299 as follows.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-14
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

H Instructions for Completing CCC-299

County Offices shall complete CCC-299 according to the following table.

Item Instructions

1 Enter State code.

2 Enter County code.

3 Enter FSFL number, including FY.

Part A

(1) Enter borrower’s name and address.

(2) or (3) Check () to indicate if FSFL will be secured by a (2) “First Lien” or 

(3) “Second Lien”.

(4) If (3) “Second Lien” was checked, enter name of the prior lienholder.

Parts B and C Attorney or title company shall complete.

Part D

8A CCC representative shall sign before sending to the attorney.

8B CCC representative signing in item 8A shall enter their title before sending 

to the attorney.

8C CCC representative shall date before sending to the attorney.

9 Enter County Office name, address including ZIP Code, and phone number.

I FSA Review of Title Search

When CCC-299 or the title insurance binder and/or commitment is received, the County 

Office must review closely. If the proper lien position can be obtained, the applicant and 

closing agent will be notified according to subparagraphs J and K.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-15
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

J FSFL Closing Notification to Applicant

County Offices shall prepare the following letter or a similar letter that is approved for use in 

the State by SED, to notify applicants of conditions to be met and information to be provided 

before establishing a date for FSFL closing. The applicant must sign, date, and return this 

letter to the County Office so FSFL closing can be scheduled.

Note: This notification is available in a fillable format at http://intranet.fsa.usda.gov/fsa/. 

CLICK “FFAS Employee Forms/Publications Site” and CLICK “Find Current Forms 

Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL Par 187J”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-16
Par. 187 

187 Closing FSFL’s Secured by Real Estate (Continued) 

K FSFL Closing Instructions to Closing Agent 

County Offices shall prepare the following letter, or a similar letter that is approved for use in 

the State by the regional OGC, to transmit FSFL closing instructions to the approved closing 

agent, attorney, or title insurance company. 

Note: This letter is available on the FFAS Employee Forms/Publication Online Website in 

fillable format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK 

“Find Current Forms Using Our Form Number Search”. For “Form Number”, 

ENTER “1-FSFL Par 187K”. 

*-- 

--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 11-17 
Par. 187 

187 Closing FSFL’s Secured by Real Estate (Continued) 

K FSFL Closing Instructions to Closing Agent (Continued) 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-18 
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

K FSFL Closing Instructions to Closing Agent (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-19
Par. 187

187 Closing FSFL’s Secured by Real Estate (Continued)

L Review of FSFL Documents After Closing

After FSFL closing, the closing agent must return the appropriate FSFL documents, 

including CCC-186, to the County Office. CCC-299 with Part C must be timely completed 

or the Title Insurance Policy must be provided by the closing agent.

On receipt of all FSFL documents in the County Office, the FSA employee shall:

• review documents to ensure that all items have been completed and returned

• immediately properly close FSFL in DLS according 2-FSFL, paragraph 401

• sign and date the statement at the end of the letter to document the review.

188-194 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-20

(through 11-38)
Par. 195

Section 2 Disbursing FSFL’s

195 Preparing CCC-186

A Preparing CCC-186

See 2-FSFL, Part 6 for the following DLS FSFL automation procedures:

• disbursement

• check request

• preparation of CCC-186

• FSFL closing.

The CCC-186 shall be generated in DLS and must be prepared according to 2-FSFL, 

*--paragraph 401. Once the CCC-186 is printed, a 2nd party review must be completed by an 

employee who did not generate the CCC-186 in the DLS FSFL automated system. The 

employee who completes the 2nd party review of the CCC-186 must initial and date the 

applicable CCC-195-A, Item 10I or CCC-195B, Item 10C. Second party reviewers must pay 

particular attention to ensure the loan term is correct on the CCC-186.--*

See Exhibit 67 for an example of CCC-186.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 11-39
Par. 195

195 Preparing CCC-186 (Continued)

B FSA Representative Execution of Note

CCC or FSA representative must execute CCC-186. This may be CED, acting CED, or 

COC member. If STC has delegated authority to execute FSFL documents according to 

subparagraph 10 A, an FSA loan approval official may execute CCC-186.

C Process Loan Closing

Immediately after all required signatures and dates are obtained on the CCC-186, the 

applicable State and/or County Office must input the loan closing in DLS. See 2-FSFL, 

paragraph 401. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-40
Par. 196

196 CCC-297

A When CCC-297 Is Required

CCC-297 is used to sever FSFL storage structure collateral from real estate.

If necessary, each State shall issue a State supplement to provide additional CCC-297 

guidance obtained from the regional OGC.

CCC-297 is required, regardless of FSFL amount or the down payment amount, for:

• FSFL’s where the structure is placed on real estate security that is owned by someone 

other than the borrower

• all FSFL assumptions signed by the assuming borrowers and co-borrowers.

Note: If FSFL is being assumed and the remaining co-borrowers will continue to meet the 

FSFL eligibility requirements, CCC-297 may not be required.

Unless waived in subparagraph B, County Offices shall obtain CCC-297 from:

• superior lienholders, including FSA, unless waived by regional OGC

• the lienholder of the property, where the facility is located, if constructed on leased or 

rented land

• all landowners on the real estate where the facility is located.

CCC-297 shall be signed by the owner of the real estate and filed with the appropriate county 

real estate records before FSFL closing. See Exhibit 68 for guidance on completing 

CCC-297.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-41
Par. 196

196 CCC-297 (Continued)

B When CCC-297 Is Not Required

 *--For loan amounts equal to or less than $100,000, or when the aggregate outstanding FSFL’s 

balance will be equal to or less than $100,000, CCC will not require a severance agreement 

from the holder of any prior lien on the real estate parcel on which the facility is located.

However, DAFP, or STC may, at their discretion, require a severance agreement for loan 

amounts greater than $50,000 or less than $100,000 for all FSFL’s in the State.--*

CCC-297 is not required if any of the following apply:

• collateral is considered a nonfixture

• an FSFL is secured by a first lien on the underlying real estate, except when the borrower 

is not the owner of the real estate.

* * *

• the loan is secured with an Irrevocable Letter of Credit for the full value of the FSFL

unless determined necessary by the regional OGC and/or STC.

• the regional OGC waives the requirement for CCC-297 because State law makes using 

such an agreement unnecessary

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 11-42
Par. 196 

196 CCC-297 (Continued) 

B When CCC-297 Is Not Required (Continued) 

 the borrower agrees to do either of the following for FSFL’s where the aggregate 

outstanding balance will be equal to $100,000, or less: 

 increase the downpayment on the storage facility from 15 to 20 percent or more of the 

FSFL amount 

Notes: Based on the additional security authorization provided to STC’s in 

paragraph 121, the borrower may increase the downpayment from 

15 to 20 percent, and CCC-297 will not be required. The borrower must be 

informed of and request this option when CCC-185 is submitted. 

The borrower may request after approval to increase the downpayment from 

15 percent to 20 percent; however, COC or STC approval is required to 

amend FSFL conditions and no longer require CCC-297. STC may delegate 

approval to SED only. The initial FSFL interest rate will remain the same. 

If the borrower requests to use this option, notate in CCC-185, item 18, and 

have the borrower sign and date. At FSFL closing, proof that the entire 

20 percent downpayment was made is required. FSFL cannot be closed until 

either CCC-297 is provided or additional documentation showing that the 

20 percent downpayment has been made is received by the County Office. 

 provide another form of security acceptable to the Secretary to completely secure the 

entire FSFL, such as an Irrevocable Letter of Credit. 

Notes: If an Irrevocable Letter of Credit is used in addition to the FSFL structure to 

secure the $100,000 or less FSFL, CCC-297 is not required if the Irrevocable 

Letter of Credit is 20 percent or greater than the FSFL amount. See 

subparagraph 121 E for guidance. 

Based on authorization provided to STC’s in paragraph 121, additional 

security may be required for FSFL’s with an aggregate outstanding FSFL 

balance of $50,000 or more. 

STC has authority to establish a more restrictive policy. 

C State Office Action 

State Offices shall: 

 request changes and instructions to CCC-297 from the regional OGC 

 make CCC-297 a State form, if required by OGC 

 provide a copy to PSD. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-43 
Par. 196 

196 CCC-297 (Continued) 

D County Office Action 

County Offices shall: 

 for FSFL’s where a real estate lien is: 

 required, have the closing agent obtain the properly completed and signed CCC-297 

Notes: For FSFL’s secured with real estate security, the closing agent should perform 

 *--the lien search before loan closing.--* 

County Offices must ensure that properly completed CCC-297’s are obtained 

at or before FSFL closing. 

 not required, conduct a real estate lien search to identify holders of liens on real estate 

underlying the intended storage facility and obtain properly executed CCC-297’s 

(Exhibit 68) 

 file CCC-297’s before FSFL closing in the appropriate county real estate records unless

the regional OGC waives the filing requirement. 

Note: If COC initially approves CCC-185D before receiving the necessary CCC-297’s, 

CCC-185D, item 3 must be checked as a condition of approval. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 11-44 
Par. 197 

197 Storing Original Security Documents 

A Document Storage Requirement 

Original security documents must be stored in a locked, fireproof cabinet until authorized to 

release according to paragraph 218. 

B Security Document Examples 

Examples of original security documents include, but are not limited to, CCC-186 and 

Irrevocable Letter of Credit. 

198 Overdisbursements and Underdisbursements 

A Collecting Overdisbursements 

County Offices shall collect overdisbursements when any of the following apply: 

 error was made by CCC 

 error was made by the borrower and FSFL will not be called 

 error was made by a third party and the borrower is not at fault. 

Example: Total FSFL cost was $10,000. FSFL was disbursed for $9,500, but it was 

later found that because of a mistake by the contractor on the final cost 

documentation, the correct amount was $8,500. The overdisbursed amount 

must be refunded. 

The overdisbursement collection will not be considered towards the 

borrower’s installment. State Offices should contact the National Office for 

further guidance on applying the overdisbursement collection in DLS. 

B Error by CCC 

If the overdisbursement was because of an error by CCC, County Offices shall: 

 obtain COC determination that the error was made by CCC 

*--issue a demand letter according to subparagraph 262 D and pursue collection--*

Note: Modify the demand letter as applicable. 

 process the refund as a regular payment according to 2-FSFL, paragraph 462, except do 

not charge interest. Use the disbursement date as the payment date. Contact PSD for 

additional guidance. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 11-45 
Par. 198 

198 Overdisbursements and Underdisbursements (Continued) 

C Error by Borrower or Third Party 

If the overdisbursement was because of an error by the borrower or a third party, County 

Offices shall: 

 obtain COC determination that the error was made in good faith by the borrower or third 

party, and is not a program violation to the extent FSFL should be called 

 issue a demand letter according to subparagraph 262 D and pursue collection 

Note: Modify the demand letter as applicable. 

 process the refund as a regular payment with interest, according to 2-FSFL, 

paragraph 462. Contact PSD for additional guidance. 

D Correcting Underdisbursed FSFL’s 

For underdisbursed FSFL’s because of errors by CCC or the borrower, contact PSD for 

guidance on correcting FSFL. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-46 
Par. 199 

199 Correcting Real Estate Lien Instruments

A Annotations and Date

When it is necessary to file and record new instruments to correct real estate security 

instruments previously recorded, County Offices shall: 

• prepare the new instrument according to paragraph 187 and applicable State law 

• ENTER “Corrective” immediately beneath the title on the new documents 

• use the execution date as the date of the corrective instrument.

B Inserting Correction Phrase

County Offices shall insert the following phrase immediately before the signature lines of 

each corrective document.

“This instrument is intended to be corrective of an earlier instrument dated (insert date), 

filed or recorded in Volume (insert volume), Page (insert page number), as Document 

Number (insert document number), and is not intended to change in any way the rights, 

duties, or obligations of the parties hereto as to such rights, duties, or obligations set in 

the original instrument hereto recorded, except insofar as said instrument is corrected 

hereby.” 

200-208 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 11-47 
.
Par. 209

Part 12 Basic Servicing Policies

Section 1 Routine Servicing

209 Producer Reminder Notification

 *--A Sending Reminder Notification Letters 

The FSFL Reminder and Notification Letter begins the act of due process which satisfies the 

initial requirement to inform the producer of the debt owed. 

FSFL reminder and notification letters are automatically generated and mailed from a central 

location under a National Office contract. 

Notes: A courtesy copy of the letters mailed to FSFL producers will be provided to the State 

Office. The National Office will notify State Office by email each month when the 

reminder letters have been posted on the PSD FSFL SharePoint website.

An FSFL Reminder and Notification Letter will not be generated and mailed to the 

borrower if the borrower has filed for bankruptcy protection or has an approved FSFL 

deferral.

B State Office Action

State Offices must: 

• access “Monthly FSFL Reminder Letters” on the PSD FSFL SharePoint website at 

https://usdagcc.sharepoint.com/sites/fsa-dafp/psd/policy/SitePages/Home.aspx

• download a copy of the letters mailed and forward the letter(s) to the respective County 

Office.

C County Office Action

County Offices must:

• no longer print and mail reminder and notification letters

• file the copy of the mailed letter in the producer’s FSFL folder once the letter is received 

from the State Office

• continue to initiate CCC-195 servicing 45 calendar days before the FSFL annual 

installment due date according to paragraph 210.--*

* * *

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-1
Par. 210

210 CCC-195 Servicing

A Completing CCC-195 Servicing

County Offices shall:

• prepare CCC-195 Servicing (Exhibit 71) 45 calendar days before the installment due date 

for all outstanding FSFL’s

*--Note: Until notified by the National Office, Notice FSFL-186 must be followed and the 

CCC-195 Servicing TS is required during the pandemic.--*

* * *

 *--Example: FSFL installment due date is August 20, 2021. The County Office must

complete CCC-195 Servicing on July 19, 2021, for items that can be--*

answered before the installment due date. Items that cannot be answered 

before the installment due date must be answered within 120 calendar days 

after FSFL installment due date.

• maintain CCC-195 Servicing in each FSFL folder

• check, initial, and date the appropriate box for each item as it is performed.

●*--complete the CCC-195 Servicing for FSFL’s that are physically located in their county 

but the FSFL is administered in another county. The administrative county must share 

the loan details with the servicing county so that the FSFL can be properly serviced. The 

servicing county will forward the completed CCC-195 Servicing to the administrative 

county.--*

Notes: Do not line through items when initials and dates are required.

It is not practical for CCC-195 Servicing to address every conceivable situation about 

servicing FSFL’s.

See Exhibit 71 for completing CCC-195 Servicing.

B Accessing CCC-195 Servicing

CCC-195 Servicing is available from the FFAS Employee Forms/Publications Online

Website at https://intranet.fsa.usda.gov/dam/ffasforms/forms.html.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-2
Par. 210

210 CCC-195 Servicing (Continued)

C Modifying CCC-195 Servicing

State Offices must only as necessary, and to incorporate individual State laws, modify 

CCC-195 Servicing for State usage by editing the document in Microsoft Word. National 

Office concurrence is not required.

D State Office or Designee Reviews

The State Office shall select the following every FY for the prior FY for each County Office 

review beginning October 1:

• three CCC-195 Servicing, if 10 or less CCC-195 Servicing’s have been completed

• five CCC-195 Servicing, if 11 or more CCC-195 Servicing’s have been completed.

Note: If the FSFL has been repaid in full, a spot check according to this subparagraph is not 

required.

Selecting the prior FY CCC-195 Servicing per County Office may be random * * *.

*--Access Report for Selecting FSFL’s for State Office Review Servicing according to the 

following:

• FSA Intranet

• Data Marts

• OBIEE Reports/Dashboards

• FSFL Reports

• Direct Applications Report FSFL.

Example of selecting the correct FY for Servicing Report:

• if the report is run on 10-01-21 (FY22)

• select “Report for FY20”

• because the 1st servicing for FSFL’s approved in FY20 would have been completed in 

FY21 (10-1-20 through 9-30-21).--*

* * *

The State Office CCC-195 Servicing Review Report is due in the National Office on or 

before the 4th Friday each January following the new FY.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-3
Par. 210

210 CCC-195 Servicing (Continued)

E National Report

SED’s or designee shall report the following for each County Office to the National Office:

• number of CCC-195 Servicing reviewed by State Office

• number of “Do Not Concur” signed by State Office

• reason for “Do Not Concur”

• corrective action provided to the County Office to resolve CCC-195 Servicing finding.

*--State Offices must complete the Annual Servicing Review using the spreadsheet available on the 

DAFP Training Website at https://inside.fsa.usda.gov/program-areas/dafp/dafp-training/index

located under National Farm Storage Facility Loan Training for Policy and Automation.

SED or designee must e-mail the report to FSFLpolicy@usda.gov by the 4th Friday in 

January each year.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-4
Par. 211

211 Collecting Installments

A Installment Payments

[7 CFR 1436.13] FSFL shall be payable in equal annual installments of principal and 

interest amortized over the FSFL term.

Installments are due and payable no later than the FSFL annual anniversary date until the 

principal plus accrued interest has been paid in full.

There is no grace period for FSFL annual installment payments.

FSA may be paid in full or in part at any time before maturity without penalty.

B Method of Payment

The payment of each installment may be by any of the following:

• cash

• money order

• personal, certified, or cashier’s check

• setoff, when applicable.

Note: If agreed by the borrower, a milk assignment may be accepted from their milk 

purchaser for a periodic payment on the FSFL; however, the periodic payment does 

not replace the annual installment calculation of principal and interest amortized over 

the FSFL term. 

C Application of Payment

County Offices shall process installment payments according to 2-FSFL, paragraph 462.

The date the check is received in the County Office must be entered in DLS as payment date 

for the annual installment payment.

Interest is calculated from the date disbursed to the date payment is made or from 1 payment 

date to the next payment date. Payment shall be applied first to accrued interest through the 

date of payment and then to principal. DLS will accurately apply the payment.

When the payment received does not cover the next installment due, the payment status will 

be displayed as “Behind” when the installment due date arrives. The account shall then be 

serviced according Part 13.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-5
Par. 211

211 Collecting Installments (Continued)

D IRS-1098

All checks and/or payments received in the County Office must immediately be entered in 

DLS correctly by December 31 for calendar year IRS-1098 reporting.

When December 31 falls on a nonworkday, County Offices must ensure that the annual 

installment payment is entered on the last workday of the year.

Kansas City will prepare and mail IRS-1098’s for FSFL interest.

E Later Payment of an Installment

FSA recognizes that installment due dates may not always coincide with dates by which 

crops are harvested and income is available. Borrowers who cannot pay on the due date may 

request up to an additional 120 calendar days to pay an installment, if they submit all of the 

following:

• a request, in writing, for COC consideration within 60 calendar days before or after the 

installment due date

• a current balance sheet

• a current cash flow statement demonstrating that the installment can be paid within 

120 calendar days after the due date.

Payment after the installment due date:

• does not change the original FSFL and DLS-calculated due date

• does not change the due date of the next installment

• allows borrowers more time to pay an installment and allows the County Office to cease 

further collection action except for offset opportunities

• may be requested 1 time only for each installment during the FSFL term.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-6
Par. 211

211 Collecting Installments (Continued)

E Later Payment of an Installment (Continued)

County Offices shall:

• notify borrowers of the late payment option in the first demand letter (Exhibit 72) sent the 

next workday after an installment is unpaid and subsequent letters sent within 60 calendar 

days of the due date

• process requests for COC approval or disapproval by obtaining:

• the borrower’s request, in writing, including a reason why the installment cannot be 

paid on time

• a recommendation about the borrower’s ability to repay at a later date from an FSA 

employee with loan approval authority

• notify borrowers of COC decision in writing

• resume collection activity according to Part 13, if the installment is not paid by 

COC-determined date

• continue to collect payment of the installment due by administrative offset of any CCC 

payments due the borrower.

 *--Also, see FSFL deferral policy in paragraph 247.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-7
Par. 212

212 FSFL Balances

A Determining Outstanding Debt

DLS maintains information on principal and interest balances.

See 2-FSFL, paragraph 461.

B How to Detect Existing Installment Balances

For FSFL’s where installments have been paid, County Offices shall:

• review FSFL installment information according to 2-FSFL, paragraph 461

• identify FSFL’s with installment balances that require further collection action.

Note: The “Payment Status” will identify if a borrower is “Ahead, “Current”, or “Behind”

in their installments.

C Collection Actions

For FSFL installments that are not fully satisfied and installment balances exist greater than 

$100 after the installment due date, County Offices shall begin servicing the delinquent 

account according to Part 13.

D Small Balance Remaining After Final Payment on Loan

If it is the borrower’s last payment and the outstanding amount due is $24.99 or less, 

authorization is provided to write-off the outstanding balance in DLS, according to 2-FSFL, 

paragraph 554.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-8
Par. 213 

213 Real Estate Taxes 

A Borrower’s Responsibility 

[7 CFR 1436.14] On FSFL’s where real estate is used as security, the borrower must: 

 pay all real and personal property taxes that may affect CCC’s security interest in all 

collateral securing the note 

 provide proof of payment of taxes, applicable to collateral securing FSFL, to the County 

Office annually. 

Note: STC’s have discretionary authority to require proof that real estate taxes are current 

for FSFL’s not requiring additional security. 

B Unpaid Taxes 

County Offices shall: 

 monitor the real estate tax status applicable to collateral securing FSFL 

 pay any unpaid taxes with respect to the collateral securing FSFL when it appears CCC’s 

security interest is in jeopardy 

Note: See subparagraph 242 B. 

 bill the borrower for the amount of the tax paid 

Note: See paragraph 303 for depositing borrower reimbursement of CCC-paid taxes. 

 begin proper servicing action and contact the National Office for additional guidance. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-9 
Par. 214 

214 Monitoring Insurance Requirements 

A Annual Verification of Insurance Requirements 

County Offices must annually: 

 verify all-peril structural and flood insurance policies by: 

 ensuring that CCC is listed as a loss payee or mortgage payee 

Note: Listing FSA as loss payee or mortgage payee is not authorized for FSFL. 

 reviewing proof of insurance provided to FSA by insurance companies 

 obtain proof and file multi-peril crop insurance, or NAP, or dairy insurance coverage for 

each applicable crop year for the entire FSFL term, unless a waiver was provided 

 *--Note: If sufficient information to verify crop insurance compliance can be obtained 

from the CIMS Policy Holder Report, the report may be used to satisfy the annual 

requirement.--* 

 verify automobile insurance coverage, if applicable. 

Before calling FSFL for lapse of all-peril structural or flood insurance, COC’s, according to 

paragraph 25, may request a waiver for failure to fully comply with FSFL requirements, if 

borrowers obtain insurance before the waiver is requested. 

If an exception was authorized, according to paragraph 157, multi-peril crop insurance or 

NAP, or dairy insurance coverage may not be required. 

B Failure to Obtain Multi-Peril Crop Insurance, NAP, or Dairy Insurance Coverage

County Offices shall: 

 monitor the borrower’s crop insurance or NAP, dairy insurance coverage status 

 consider a lack of crop insurance or NAP, dairy insurance coverage to be an FSFL 

violation 

 take action to call FSFL’s when borrowers do not maintain insurance or NAP, dairy 

insurance coverage. 

Before calling FSFL’s for lapse of insurance, COC’s may request a waiver for specified crop 

years according to paragraph 157. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 12-10 
Par. 214

214 Monitoring Insurance Requirements (Continued)

C Automobile Insurance

County Offices shall: 

• monitor borrower’s automobile insurance status 

• consider the lack of automobile insurance to be an FSFL violation 

• take action to call FSFL’s when borrowers do not maintain automobile insurance. 

A waiver is not allowed for FSFL’s required to have automobile insurance according to 

paragraph 98. 

D Flood Insurance

The borrower is required to immediately purchase flood insurance if it is later discovered 

that:

• the county flood map was updated after FSFL disbursement

• flood insurance should have been required before FSFL disbursement. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-11 
Par. 215

215 Inspections

A Required Inspections

[7 CFR 1436.15] The borrower must maintain the FSFL collateral in a suitable condition.

County Offices shall perform collateral checks:

• at least once every other year for all FSFL’s using asphalt flooring, according to 

subparagraph B

• for the following terms:

• 3-year term, the 2nd year of FSFL

• 5-year term, the 3rd year of FSFL

• 7-year term, the 4th year of FSFL

• 10-year term, the 4th and 8th years of FSFL

• 12-year term, 4th and 9th years of FSFL

Important: If there is reason to believe CCC’s collateral is at risk, STC or COC may 

authorize the County Office to perform a collateral check at any time.

• where the full annual installment payment is not made within 30 calendar days after the 

installment due date

• if possible, in conjunction with other FSA loan program collateral checks.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-12
Par. 215

215 Inspections (Continued)

A Required Inspections (Continued)

Example: Producer Berry has an FY 2020 FSFL with a 10-year term and the annual 

installment payment is due on May 1, 2021. The following table is a schedule of 

when collateral checks are required based on the date the annual installment 

payment is received in the County Office.

Note: Future dates of annual installment payments were used for example only.

FSFL Term

Date Annual Installment Payment 

Received in the County Office Collateral Check Required

Year 1 April 30, 2022 No

Year 2 May 1, 2023 No

Year 3 June 19, 2024 Yes

Year 4 April 30, 2025 Yes

Year 5 May 10, 2026 No

Year 6 April 27, 2027 No

Year 7 May 1, 2028 No

Year 8 June 3, 2029 Yes

Year 9 April 27, 2030 No

Year 10 May 31, 2031 No

--*

County Offices shall have right of access where the collateral is located according to a term 

in CCC-186 whether or not there is a real estate mortgage.

The results of the required annual inspection must be documented in the FSFL folder in 

CCC-195 Servicing, item 12.

B Asphalt Flooring Inspections

To ensure that asphalt flooring is being properly maintained, County Offices must:

• make a field visit and conduct a collateral check of all FSFL’s using asphalt flooring at 

least once every other year or as determined by STC

• complete CCC-195 Servicing, item 12 E to document the field visit, and item 16 to 

record remarks.

C HELC and WC Provisions

If a violation of HELC and/or WC provisions is determined after FSFL has been disbursed, 

FSFL may remain outstanding as long as the producer continues to make the annual 

installment payments timely.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-13
Par. 216

216 Maintaining UCC Lien

A Continuing UCC Filings

UCC-1 filings (chattel and fixture) will lapse after 5 years, unless continued for an additional 

5-year period. The continuance shall be accomplished with a UCC-3 “Continuation”.

The only time UCC-3 “Continuation” may be filed is during the last 6 months of the 5-year 

effective filing period. The continuation is effective from the date the original UCC-1 would 

have expired, even though the continuation is filed up to 6 months before the expiration.

Example: UCC-1 was filed May 1, 2012.

UCC-3 “Continuation” may be filed anytime from November 1, 2016, through 

May 1, 2017.

If UCC-3 “Continuation” is filed timely within this period, UCC-1 is considered 

effective until May 1, 2022.

B County Offices Monitoring UCC Lien Expiration

County Office must ensure that a monitoring system is used so that UCC documents are 

continued timely.

Updating the DLS Dashboard is 1 option available for monitoring UCC documents.

C Fees for UCC Lien Continuance or Amendment

All fees associated with continuing or amending UCC documents will be paid by CCC.

See paragraph 302 for guidance on processing UCC document filing fees.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-14
Par. 217

217 FSFL Structures, Equipment and Trucks Used for Purposes Other Than Originally 

Intended

A Original Authorization

FSFL drying and handling equipment, storage structures and trucks are authorized for 

eligible commodities that were used to determine the eligibility of the FSFL request. 

Producers must use the FSFL collateral for the intended purpose of storing, handling and/or 

transporting their eligible commodities.

B Using FSFL Collateral After FSFL Commodities Have Been Marketed

After the stored commodity has been marketed, the collateral may, with prior approval, be 

used by the borrower to temporarily store other agricultural-related items until the next 

harvest season.

C Temporary Reuse Authorization

Producers must use the FSFL collateral for the intended purpose in which was originally 

requested.

STC’s are authorized to provide approval and guidance for situations where a producer may

temporarily use the storage structure, drying and handling equipment, and/or storage and

handling truck for other purposes. The STC guidance, at a minimum must include the

following:

• when the producer must request, in writing, authorization to use the FSFL collateral

• frequency (seasonal, quarterly, or annual) of the written request

• situations where authorization is not required

• designated approval authorization when authorization is required.

The STC authorization must be documented in the STC Regular Meeting minutes.

D FSFL Borrower Actions

An FSFL borrower must:

• submit a written request to the County Office for approval to store or handle anything 

other than an eligible FSFL commodity 

• have written approval from CED before storing or handling anything other than an 

eligible FSFL commodity.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-15
Par. 217

217 FSFL Structures, Equipment and Trucks Used for Purposes Other Than Originally 

Intended (Continued)

E FSA Monitoring

COC’s shall closely monitor FSFL structures temporarily storing other agricultural-related 

items to ensure that the structure is used for the purpose for which it was constructed for a 

good portion of every year during the FSFL term. If it is discovered that a borrower 

consistently fails to obtain approval from the County Office before storing another 

agricultural-related item in an FSFL structure, the State Office shall contact PSD for 

guidance.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-16
Par. 218

218 FSFL’s Paid in Full and Releasing Security

A Original CCC-186

The original CCC-186 must be marked “Paid” and forwarded to the borrower after 

30 calendar days from the date of payment.

If the borrower requests release before 30 calendar days, see subparagraph B.

B Releasing FSFL Security Earlier Than 30 Calendar Days

Security documents may be released 30 calendar days after the FSFL is paid in full. The 

release may be earlier than 30 calendar days after FSFL is paid in full, if after SED review, it 

is determined FSFL has been satisfied and paid in full and the payment was by cash, certified 

check, or money order. The authority for this release may not be redelegated.

If final FSFL payment is made by cash, certified check, or money order, the borrower may 

request an accelerated release of security documents from SED. Included with the request, 

the County Office will send a copy of the final FSFL payment receipt showing FSFL has 

been paid in full, and a copy of CCC-257 showing the remittance has been deposited. SED, 

after reviewing the documents, may advise the County Office, in writing, to proceed with 

releasing the security documents. The authority for this release may not be redelegated.

If a release of security request is received from the borrower for immediate release at the 

time of a bank loan closing, SED is authorized to release the security documents only after it 

is confirmed at the bank that closing certified funds will be used to pay the outstanding FSFL 

in full.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-17
Par. 218

218 FSFL’s Paid in Full and Releasing Security (Continued)

C Releasing FSFL Security Documents

After FSFL is paid in full, County Offices must wait 30 calendar days and then:

• release or obtain the release of security documents, as required by State law, on request 

by the borrower

Note: See subparagraph D for releasing an Irrevocable Letter of Credit and 

subparagraph E for specific information on discharging the mortgage or Deed of 

Trust.

• require the borrower to pay all release fees.

If the borrower requests a release before 30 calendar days, follow the guidance in

subparagraph B.

Note: FSA-2071 may be used to record documents and/or forms being returned to the 

borrower after the FSFL has been paid in full.

 *--CED is the CCC representative authorized to release a storage and handling truck title unless 

documented differently in the STC or COC minutes.--*

D Releasing Irrevocable Letter of Credit 

The original Irrevocable Letter of Credit must be marked paid in full and returned to the 

financial institution. The County Office must maintain a copy of the Irrevocable Letter of 

Credit marked paid in full in the producer’s file folder.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-18
Par. 218

218 FSFL’s Paid in Full and Releasing Security (Continued)

E Mortgage or Deed of Trust Discharge Preparation and Distribution

County Offices shall:

• prepare discharges according to the following unless OGC requires other language 

according to State law

• file the discharge with the appropriate recording official according to State law

• distribute copies of the discharge to the following:

• secured party

• debtor

• FSFL folder

• the borrower pays all costs associated with the discharge.

DISCHARGE

The Commodity Credit Corporation (CCC), as owner and holder of the following described 

security instruments, made and executed by [enter names of debtors], of [enter County 

where debtor is located] County, State of [enter State where debtor is located], filed or 

recorded in the [enter name of the office where security instruments were recorded], office 

of [enter county where the office is located], State of [enter State where the office is 

located], satisfies and discharges said lien instruments.

Instrument Mortgagee

Date of 

Instrument Date Filed

Document, 

File or Book 

No. Page No.

In witness whereof, CCC has signed this form on [enter date of execution].

Witness: [enter signature of person witnessing CCC signature]

For: Commodity Credit Corporation

By: [signature of authorized representative of CCC]

Title: [enter title of authorized representative of CCC]

[Attach acknowledgment applicable to State for notarization.]

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-19
Par. 219

219 Discharging CCC-297’s 

A Authorization for Discharging CCC-297’s 

Discharges of CCC-297’s used to protect CCC’s security interest are authorized when the:

• County Office determines that:

• FSFL has been paid in full 

• 30 calendar days from the date of final payment of FSFL have lapsed 

• borrower pays all costs associated with the discharge.

Note: The borrower may request an accelerated release of security documents from SED. 

See subparagraph 218 B.

A prior lienholder executes CCC-297 at FSFL closing. If the prior lienholder is refinanced, 

CCC-297 may be released, provided FSA has obtained CCC-297 from the new lender. 

B Partial Release of CCC-297 

County Offices, after DD or State Office review, are authorized to complete a partial 

discharge of CCC-297 when CCC’s security interest will not be jeopardized. The release 

must not include the real estate where the FSFL collateral is located.

Example: Real estate listed on CCC-297 is larger than necessary. The original CCC-297 

described the entire 80 acres owned by the borrower. The borrower is refinancing 

the 80 acres with another lender. CCC will not release their lien position, but can 

discharge CCC-297 on part of the real estate that does not include the FSFL 

collateral.

The borrower must: 

• submit a written request to COC describing the partial release request

• provide a survey that describes the real estate for CCC-297 partial release 

• pay all costs associated with the partial release discharge.

County Offices must: 

• ensure the request does not include the FSFL collateral

• prepare a partial discharge according to subparagraph C. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-20 
Par. 219

219 Discharging CCC-297’s (Continued)

C Partial or Full Discharge Preparation and Distribution

County Offices shall:

• prepare discharges according to the following unless OGC requires other language 

according to State law

Note: When a partial discharge of CCC-297 is prepared, ENTER “Partial” before the 

“Discharge of Severance Agreement”. Ensure that that the legal description used 

is the legal description matching the survey completed.

• distribute copies of the discharge to the following:

• secured party

• debtor

• FSFL folder.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-21
Par. 219

219 Discharging CCC-297’s (Continued)

C Partial or Full Discharge Preparation and Distribution (Continued)

DISCHARGE OF SEVERANCE AGREEMENT

The Commodity Credit Corporation (CCC), does hereby acknowledge and certify that the 

debt referred to in the severance agreement dated [enter date of severance agreement]

relating to the following described real estate, [enter real estate description according to 

severance agreement] situated in the County of [enter County where debtor is located], 

State of [enter State where debtor is located], which severance agreement was filed or 

recorded in the [enter name of the office where severance agreement was recorded], office 

of [enter county where office is located], State of [enter State where office is located], in 

book [enter book number], page [enter page number] has been fully liquidated both as to 

principal and interest by payment to Commodity Credit Corporation or by cancellation of 

the loan application, and that the severance agreement is hereby terminated and shall be of 

no further force or effect.

For: Commodity Credit Corporation

By: [signature of authorized representative of CCC]

Title: [enter title of authorized representative of CCC]

In witness whereof, CCC has signed this form on [enter date of execution].

Witness: [enter signature of person witnessing CCC signature]

[Attach acknowledgment applicable to State for notarization, if necessary.]

Note: This example may be modified to comply with State law, such as removing the 

witness requirement if the agreement must be notarized.

220-230 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-22

(through 12-40)
Par. 231 

Section 2 Other Servicing

231 Changes to a Farming Operation 

A Farming Operation Changes

FSFL’s are approved and disbursed to a farming operation that is an eligible entity or eligible 

producer at the time of approval. 

B Borrower Action

If any changes are made to a farming operation with an outstanding FSFL, the borrower 

must do 1 of the following: 

• find an eligible borrower or entity to assume FSFL according to paragraph 234 

• repay FSFL

• submit current financial documents so that a financial analysis can be completed to 

ensure that CCC’s interests are protected and that the current borrower is in a position to 

continue making the scheduled FSFL payments. 

 *--Exception: If the FSFL is secured with an Irrevocable Letter of Credit a financial 

analysis is not required unless required by STC.--* 

If the borrower is no longer farming and is approved to continue making the FSFL payments 

by the original approval official, the multi-peril crop insurance, NAP, or dairy insurance

coverage requirement, according to paragraph 96 may not be required. CCC-195 Servicing, 

“Remarks” section must be noted each year that crop insurance, NAP, or dairy insurance

coverage is not required. 

The only way TIN can be changed on an outstanding FSFL is through the FSFL assumption 

process. If an individual borrower changes their farming operation to a corporation, the 

corporation must assume FSFL for IRS-1098 to report the interest paid to the new TIN. All 

the steps for FSFL assumption must be completed for the corporation. 

The FSFL collateral is still prohibited from being used as a commercial facility or 

operation as long as FSFL is outstanding.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 12-41 
Par. 232

232 Relocating FSFL Collateral

A Applicability

Requests by borrowers to move FSFL collateral are permissible when either:

• the borrower wants to move collateral to a new location

• another producer wants to buy the collateral and assume FSFL.

B Destination County Office Action

County Offices may approve requests to move collateral when:

• the collateral is movable and not secured by a real estate lien

• COC determines that the move will not impair CCC’s security interest

• all moving expenses are paid by the borrower

• before the collateral is moved:

• necessary changes to CCC-186 are made according to OGC advice

• a lien and deed search is performed

• an amended UCC-1 describing the new location is filed at the borrower’s expense

• CCC-297’s are obtained as necessary

• an on-site inspection at the new location is performed by the administrative or destination 

County Office

• environmental conditions have been reviewed.

When collateral is moved outside the county that administers FSFL, the destination County 

Office shall assist the administrative County Office with lien and deed searches and with an 

on-farm inspection.

Note: Do not transfer FSFL’s from 1 County Office to another under this provision.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-42
Par. 233 

233 Repairing or Replacing FSFL Collateral 

A Liability 

Until FSFL has been repaid, the borrower shall be liable for all damages to or destruction of 

the collateral. CCC shall not assume any loss of the FSFL collateral. 

B Occurrences 

Requests for repairing or replacing FSFL collateral may occur when: 

 equipment wears out before reaching the end of its useful life 

 equipment is damaged or destroyed by insurable loss 

 insured structures and equipment are damaged or destroyed by insurable causes of loss, 

such as, but not limited to, wind storms and fire. 

C Collateral Will Not Be Repaired 

When collateral is destroyed or damaged and will not be repaired, County Offices shall: 

 inspect collateral to assess damage 

 apply insurance proceeds as a regular FSFL payment 

 create a claim for outstanding amounts after CCC has disposed of FSFL collateral, 

according to 58-FI provisions 

 discuss with the approving authority if FSFL should be called according to paragraph 263 

and/or determine whether DAFP waiver is needed to allow FSFL to remain outstanding 

until paid in full. 

State Offices may contact the National Office for additional guidance when FSFL collateral 

will not be repaired. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-43 
Par. 233

233 Repairing or Replacing FSFL Collateral (Continued) 

D Collateral Will Be Repaired 

When collateral is damaged and will be repaired County Offices shall: 

 notify producers that approval is required before existing FSFL security documents are 

amended for repair or replacement 

 inspect collateral to assess damage 

 advise borrowers that they may apply for a new FSFL for replacement facilities and 

equipment 

 inspect collateral after repairs have been completed 

 release insurance proceeds to borrower when borrower presents evidence of cost of 

repairs. 

County Offices shall hold insurance proceeds until repairs are completed unless other 

guidance is provided by the National Office. Insurance proceeds shall not be deposited. Do 

not let the check expire. State specialists shall contact PSD, at least 30 calendar days before 

a check expires, for instructions on how to proceed. 

When a portion of the insurance proceeds are needed by the borrower before the collateral 

can be repaired, the borrower must submit a written request to COC to release up to 

20 percent of the insurance proceeds. After COC approval, the borrower must work with the 

insurance provider to have 2 checks issued. The County Office may then endorse 1 check for 

up to 20 percent to the borrower to repair the collateral. The second check must be held until 

all repairs are completed. After repairs are completed, the County Office must inspect the 

*--collateral and document the results on CCC-295A or CCC-295C. If the inspection verifies--*

the collateral was repaired properly, the second check in the amount of 80 percent may be 

released to the borrower. 

Note: If the insurance company is not willing to issue 2 checks, contact the National Office 

for guidance. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 12-44 
Par. 233

233 Repairing or Replacing FSFL Collateral (Continued)

D Collateral Will Be Repaired (Continued)

County Offices must ensure that acceptable evidence and CCC-191’s are collected and 

reviewed to substantiate the repair costs. Collecting this information will ensure that FSA 

does not encounter a future liability or mechanics lien.

The borrower is responsible for the cost of amending and refiling FSFL security documents. 

The original approving authority must provide authorization to amend FSFL security 

documents.

Note: For questionable cases, contact Toni Williams by e-mail to 

toni.williams@wdc.usda.gov.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-45
Par. 234 

234 Assumptions

A When Authorized

An assumption of FSFL may be approved by CCC. The approval authority for FSFL 

assumption is the same as for a regular FSFL.

Assumptions are authorized, but not limited to, when the following situations occur: 

• borrower requests an assumption to convey the secured property to another eligible 

producer 

• borrower is deceased and an eligible heir or another eligible producer who is not liable 

for FSFL requests an assumption. 

B Application Package 

The new applicant must apply for FSFL by completing CCC-185. The supplemental 

application package information, according to paragraph 69, shall also be provided. 

C Application Fees for Assumptions

Application fees are required for assumptions according to paragraph 58 with 1 exception. 

A new application fee is not required, if the remaining co-borrowers will continue to meet 

FSFL eligibility requirements and demonstrate the need for the FSFL. For this situation, 

CED, COC, or FSA employee with loan approval authority may approve CCC-298. 

Record application fees for assumptions in DLS according to 2-FSFL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-46 
Par. 234

234 Assumptions (Continued)

D Accrued Interest

Interest due on FSFL from the date of disbursement or date of last payment, as applicable, to 

the effective date of the assumption may be paid either by the original borrower or by the 

new applicant. CCC-298, item 11 C relates to “unpaid interest to be assumed”.

IF the interest due is

to be... THEN...

paid by the original 

borrower

• calculate the interest due according to 2-FSFL

• apply the interest payment before processing the assumption

Note: This payment:

• may be interest only with no principal repaid

• must be applied before dataloading the 

assumption to credit the interest payment amount 

to the original borrower’s TIN.

• in CCC-298, item 11 C, ENTER “0.00” to indicate the buyer 

is not assuming unpaid interest.

assumed by the buyer • calculate the interest due according to 2-FSFL

• complete CCC-298, item 11 C, by entering the calculated 

interest due to indicate the buyer is assuming unpaid interest.

Note: This “unpaid interest to be assumed” must be entered 

on CCC-298 before buyers and co-buyers sign 

CCC-298 and the assumption is approved. When the 

next payment is applied to FSFL, interest will be 

calculated from the date of disbursement or date of last 

payment, as applicable. This assumed interest is not

collected at the time of the assumption.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-47
Par. 234 

234 Assumptions (Continued)

E County Office Actions

County Offices shall take the following actions. 

Step Action

1 Prepare CCC-185 to document the applicant meets the storage need.

2 Collect the application fee in effect at the time the assumption is requested according 

to subparagraph C.

3 Request lien search and credit report on new applicants. Pay lien search, filing, and 

recording fees according to paragraph 58.

4 Approve assumptions only for applicants who meet all of the eligibility 

requirements according to paragraph 35.

5 Obtain new CCC-297’s, if applicable.

6 Prepare and record new security documents to protect CCC’s interest in the 

collateral.

7 Include unpaid interest in the assumed FSFL unless the approving STC or COC, as 

applicable, requires payment of interest to the date of assumption.

8 Use CCC-298 to document the assumption and STC or COC, as applicable, 

approval.

9 Require new applicant to pay filing and recording fees according to paragraph 58.

10 Provide releases of security to the original borrower. The original borrower pays all 

fees associated with releasing security.

11 Require new applicant to pay the next installment when it is due.

12 Call FSFL and require payment in full when there is not an eligible producer to 

assume FSFL.

Process assumption in DLS according to 2-FSFL, paragraph 550.

Note: For questionable cases, contact Toni Williams by e-mail to 

toni.williams@wdc.usda.gov. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-48 
Par. 234

234 Assumptions (Continued)

F Preparing CCC-298

CCC-298 documents the assumption of the existing debt by the new borrower. CCC-298’s 

will be processed manually. CCC-298 must be:

• signed by all required:

• borrowers

• co-borrowers

• buyers

• co-buyers

• approved by COC or STC, as applicable.

CCC-298’s:

• maintain the original:

• FSFL number

• interest rate

• installment due date

• installment amount

• maturity date

• may only be processed on disbursed FSFL’s

• remove 1 or more original borrowers and co-borrowers

• add 1 or more new buyers and co-buyers.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-49
Par. 234

234 Assumptions (Continued)

F Preparing CCC-298 (Continued)

County Offices shall prepare CCC-298 according to the following instructions.

Item Instructions

1 Enter State code.

2 Enter county code.

3 Enter FSFL serial number, including FY.

4 Enter borrower’s name, address, and telephone number that are on the current 

FSFL.

5 Enter State where FSFL is administered.

6 Enter county where FSFL is administered.

7 Enter legal description of where the equipment is located.

8A Enter name, address, and telephone number of the buyer or survivor.

8B Enter county where the buyer lives.

8C Enter State where the buyer lives.

9 A Enter date that the original CCC-186 was executed.

9 B Enter principal amount of original FSFL.

9 C Enter principal amount that is unpaid.

9 D Enter date of the last installment.

9 E Enter interest rate in effect for the original FSFL.

10 A Enter State where the security instrument is filed.

10 B Enter county where the security instrument is filed.

10 C Enter kind of security instrument, such as UCC-1, mortgage, or Deed of Trust.

10 D Enter date the instrument was executed.

10 E Enter name of the office where the instrument was recorded.

10 F Enter book, volume, or document number.

10 G Enter page number in the book where the instrument is recorded, if applicable.

10 H Check () if new security.

11 A Enter effective date of assumption.

11 B Enter amount of unpaid principal to be assumed.

11 C Enter unpaid interest to be assumed, if any.

11 D Enter total of items 11 B and 11 C.

11 E Enter date of the next installment according to the original schedule.

11 F Enter interest rate applicable to the original FSFL.

12A-C Original borrower or representative shall sign, enter title, and date.

13A-C Co-borrower or representative shall sign, enter title, and date.

14A-C Buyer or representative shall sign, enter title, and date.

15A-C Co-buyer or representative shall sign, enter title, and date.

16 CCC representative shall sign and enter their title.

17 Enter name, address, and phone number of the County Office to administer 

FSFL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-50
Par. 234

234 Assumptions (Continued)

G Example of CCC-298

The following is an example of CCC-298.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-51
Par. 234

234 Assumptions (Continued)

G Example of CCC-298 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-52
Par. 235

235 UCC-1 Partial Releases Before FSFL Is Paid in Full

A UCC-1 Partial Releases 

Occasionally a borrower will sell a specific piece of equipment that is described on UCC-1. 

County Offices, after DD or State Office review, are authorized to complete a partial release 

of UCC-1, if the borrower pays the principal and interest cost of the equipment for release.

Example: FSFL UCC-1 describes 2 Sukup round steel grain bins 27 foot diameter, 6 rings 

height, drying equipment including fan, motor, and an unloading auger. The 

borrower requests the auger be released.

The borrower shall submit the request in writing. DD or State Office must determine the 

release will not jeopardize CCC’s security value in the FSFL collateral.

B County Office Action

County Offices shall:

• review the borrower’s written request with the DD or State Office

• calculate the principal and interest that will be paid

• determine outstanding FSFL amount and value of the security after payment is received

Note: Review by an FSA employee with loan approval authority is required for FSFL’s

with additional security. 

• after DD or State Office approval, review with COC

• collect the payment for the principal plus interest cost of the equipment being released 

• apply producer’s payment in DLS 

• ensure that 30 calendar days from the date of payment of FSFL have lapsed according to

paragraph 218 

• complete UCC-3 to terminate the UCC filing for the partial release.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-53 
Par. 236 

236 Partial Release of Real Estate

A General Information on Partial Releases

Partial releases of real estate are allowed. After necessary information is obtained, COC 

shall make a determination on whether the partial release is approved.

STC’s have authority to establish a more restrictive Statewide policy for partial releases. 

This must be a Statewide basis and not on case-by-case basis.

B Information Required by Borrower

Borrower shall:

• submit a written request providing information about the release

• provide a survey of the real estate to be released, if necessary to ensure that the property 

being released is easily identifiable

• pay all costs associated with the release, including but not limited to, survey costs, 

appraisal fees, and filing fees.

C Processing Request for Partial Release of Real Estate 

Items to consider on whether the release will jeopardize CCC’s security interest include:

• property released will not interfere with access to or operation of remaining real estate

• real estate on which the FSFL structure is located shall not be released.

A valuation of the remaining real estate shall be obtained as described in paragraph 122. The 

methodology used to determine the security value for the outstanding FSFL amount must be 

maintained in the FSFL folder. 

Partial release of real estate used to secure FSFL’s is authorized when COC (or STC and/or 

SED if determined on a Statewide basis) determines that the:

• partial release will not jeopardize CCC’s security interest

• remaining real estate has sufficient value to secure the outstanding FSFL principal 

amount 

• remaining real estate is a saleable unit.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-54 
Par. 236

236 Partial Release of Real Estate (Continued) 

D Partial Release Preparation and Distribution 

County Offices must: 

●*--complete a NEPA compliant environmental review of the proposed release and any 

connected action as provided by 1-EQ, subparagraph 3 C and paragraph 9.--* 

 prepare partial releases according to the following unless OGC requires other language 

according to State law 

 file the partial release with the appropriate recording official according to State law 

 distribute copies of the partial release to the following: 

 secured party 

 debtor 

 FSFL folder. 

PARTIAL RELEASE 

The Commodity Credit Corporation (CCC), as owner and holder of the following described 

security instruments, made and executed by [enter names of debtors], of [enter county 

where debtor located] County, State of [enter State where debtor located], filed or recorded 

in the [enter name of the office where security instruments were recorded], office of [enter 

county where office is located], State of [enter State where office is located], to wit: 

Instrument Mortgagee 

Date of 

Instrument Date Filed 

Document, File or 

Book No. Page No. 

 

for value received, does release from the lien of said instruments the following described 

property [describe property in detail]. 

Only the above described property is released from the lien of the aforesaid instruments. 

This release shall not affect or modify the obligations secured by those lien instruments, 

and these obligations shall continue in force and in effect until fully paid, satisfied, and 

discharged. 

In witness whereof, CCC has signed this form on [enter date of execution]. 

Witness: [enter signature of person witnessing CCC signature] 

For: Commodity Credit Corporation 

By: [signature of authorized representative of CCC] 

Title: [enter title of authorized representative of CCC] 

[Attach acknowledgment applicable to State for notarization.] 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 12-55 
Par. 237 

237 Real Estate Lien Subordination 

A Real Estate Subordination

Authority is provided to subordinate CCC’s lien position if all of the following apply: 

 adequate security is available to secure the outstanding FSFL amount according to 

paragraph 122 

Notes: The methodology used to determine the security value for the outstanding FSFL 

amount must be maintained in the FSFL folder. 

 FSFL is not in default 

●*--an environmental review is completed as provided by 1-EQ, subparagraph 9 B--* 

 the borrower: 

 in writing, requested that CCC subordinate its lien position 

 did not file bankruptcy, receive any new liens, increased credit lines, or 

encumbrances, unless CCC approves otherwise in writing 

 agrees that they will be responsible for all FSFL security re-filings and/or releases. 

STC’s have authority to establish a more restrictive Statewide policy for subordinating 

CCC’s lien position. This must be a Statewide basis and not on case-by-case basis. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 12-56 
Par. 237 

237 Real Estate Lien Subordination (Continued) 

B Approval Authority 

The subordination must be approved according to this table. 

IF aggregate outstanding FSFL balance is... THEN approval authority is... 

less than or equal to $250,000 DD. 

greater than $250,000 STC or delegated authority to SED only. 

Note: Approval officials must ensure that all documents received from a creditor or 

financial institution for signature to subordinate CCC’s lien position are reviewed 

*--thoroughly and will not adversely affect CCC’s security and that the environmental 

review found no adverse impacts or extraordinary circumstances associated with any 

connected action. The approval official, as needed, must consult with the regional--*

OGC for legal advice. 

State Offices must provide the following information to the National Office within 

30 calendar days after the subordination of CCC’s lien position is approved: 

 County Office 

 FSFL number 

 original FSFL amount 

 amount of outstanding FSFL at time of subordination request. 

The State Office price support specialist shall provide the information to Toni Williams at 

toni.williams@wdc.usda.gov. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 12-57 
Par. 238 

238 Deceased Borrowers 

A County Office Action 

When it is learned that an FSFL borrower has died, County Offices shall notify the State 

Office of the following: 

 deceased borrower’s name 

 FSFL number 

 date of original FSFL 

 principal balance remaining 

 whether other parties signed CCC-186 and are liable for the debt 

 security for FSFL 

 information on whether an estate probate has begun. 

B State Office Action 

When notified of a deceased borrower by a County Office, the State Office shall take the 

following action. 

Step Action

1 Contact regional OGC for advice in preparing a letter that notifies the fiduciary 

representative of the estate that: 

 there is an outstanding CCC loan 

 FSFL is secured by CCC-186 and, if applicable, a mortgage or Deed of Trust on 

real estate. 

2 Obtain advice from the regional OGC as to the course of action CCC should take to 

continue FSFL. 

3 Notify County Office of OGC’s recommendations and the language to include in the 

notification letter. 

C Example Letters 

The following example letters are available electronically to contact the fiduciary 

representative. 

Exhibit Letter 

81 Loan Secured by FSFL Fixture Only

82 Loan Secured by FSFL Fixture and Real Estate Mortgage or Deed of Trust 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-58 
Par. 238

238 Deceased Borrowers (Continued)

D Typical Order of Events

Although processing deceased borrower FSFL’s will vary dependent on the situation, the 

following is the typical order of events when FSFL will not be paid in full and FSA is forced 

to proceed:

• a letter is sent to the fiduciary representative advising them of the outstanding FSFL debt

with CCC-186 proof of debt enclosed

• County Offices shall monitor local legal publications to determine whether an estate is 

being administered

• if applicable, an assumption is processed to eligible parties

• if an estate is not probated and the heirs show no indication of resolving FSFL, State 

Office shall make a determination whether to proceed to service FSFL according to

Part 13 by calling FSFL and liquidating the security.

239-241 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-59

(through 12-80)
.
Par. 242

242 Disbursements for Unpaid Real Estate Taxes

A Applicability

County Offices are authorized to make additional disbursements when, for FSFL’s secured 

by real estate, real estate taxes must be paid when both of the following apply:

• COC determines payment is necessary to protect CCC’s interest

• real estate taxes that are delinquent to the extent the property is scheduled to be sold at a 

tax auction.

B Issuing Payments for Real Estate Taxes

For FSFL’s where additional payments are necessary to protect CCC’s security interest, 

County Offices shall:

●*--use the DLS “recoverable fee” option--*

• create a receivable in the debtor’s name for the amount paid according to current FI 

procedure

• pursue collecting the receivable from the debtor according to current FI procedure.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-81
Par. 243

243 Applicability of the Service Members Civil Relief Act

A Applicable FSFL Borrowers

Applicable FSFL borrowers are persons who are:

• on active duty anywhere in the world and are active members of the following:

• U.S. Air Force

• U.S. Army

• U.S. Coast Guard

• U.S. Marine Corps

• U.S. Navy

• officers of the Public Health Service detailed by proper authority for duty with the 

U.S. Army or U.S. Navy

• members of Reserve or National Guard units who have been called to active duty status

• members of the referenced branches in training or education under U.S. supervision 

preliminary to induction into the military service

• members absent from duty because of sickness, wounds, leave, or other lawful cause.

B Applicable FSFL’s

Applicable FSFL’s affected by the Service Members Civil Relief Act are FSFL’s:

• secured with personal or real property

• entered into before the borrower entered active military service.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-82
Par. 243

243 Applicability of the Service Members Civil Relief Act (Continued)

C Relief Available

Types of relief offered include the following: 

• relief from foreclosure, sale, or seizure of property for nonpayment of FSFL obligation, 

during the period of active military service or within 3 months; thereafter, unless done 

according to an agreement with CCC or through a court order 

Example: For borrowers who fail to pay installment payments, according to 

paragraph 262, County Offices shall not: 

• continue with collection actions, including calling FSFL 

• sell the collateral that was used to secure FSFL, unless the borrower 

desires to voluntarily convey the collateral on CCC-400 to satisfy the 

outstanding FSFL.

• Treasury and internal administrative offsets will be discontinued after a producer is 

ordered to report for induction or military service, and any payments received as a result 

of offset after the date the borrower was called to active duty will be refunded

• interest rates for applicable FSFL’s may not exceed 6 percent during the period of active 

military service.

Note: The interest rate reduction is automatic. However, at this time, there is no way to 

modify the interest rate for FSFL except on a case-by-case basis.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-83 
Par. 243

243 Applicability of the Service Members Civil Relief Act (Continued)

D County Office Action

County Offices shall:

• advise borrowers to notify the County Office if they are full-time members of the military 

or have been called to active duty status whether or not their financial situation has been 

adversely affected

• help the borrower properly execute powers of attorney to designate persons to perform 

CCC transactions on their behalf

• request minimal documentation to support a request for relief from affected borrowers, 

such as a copy of orders calling them to active service

• forward all requests applicable to the Service Members Civil Relief Act to DAFP for 

final consideration and approval

Note: Further instructions and guidance about interest rate reductions will be sent with 

the applicable approval notification. At a minimum, requests shall provide the 

following:

• interest rate applicable to FSFL

• outstanding principal amount

• amortization schedule

• all payment receipts.

• cease any ongoing foreclosure actions against applicable borrowers.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-84
Par. 244

244 Divorce Policy 

A Applicability 

STC’s are authorized to release divorced borrowers from liability on FSFL’s with an 

aggregate outstanding FSFL balance of $100,000 or less. 

For FSFL’s with an aggregate outstanding FSFL balance greater than $100,000, STC’s and 

COC’s are not authorized to release divorced borrowers from liability on FSFL. DAFP will 

consider a waiver, according to paragraph 25, for release of an individual’s liability, if both

of the following apply: 

 jointly liable individual borrowers have divorced 

 1 spouse has withdrawn from the farming operation. 

B Request for Waiver 

COC, with STC concurrence, may request DAFP to remove an individual from FSFL 

liability. The request shall provide the following: 

 a cover memorandum from the County Office with a recommendation from COC and 

including the following: 

 copy of CCC-186 

 outstanding principal amount 

 DLS screen print of annual installment payments 

 copies of UCC-1 

 current lien search 

 copies of any other pertinent information 

 a recommendation, based on financial analysis, from an FSA employee with loan 

approval authority about the remaining borrower’s ability to continue FSFL 

 a recommendation, based on financial analysis, from an FSA employee with loan 

authority about the person withdrawing from FSFL, and confirming the person does not: 

 have any payment ability for FSFL 

 own any nonessential assets 

 a copy of the divorce decree or property settlement document holding the withdrawing 

party not responsible for FSFL payments 

 evidence of conveyance of the withdrawing party’s interest in the security to the 

borrower with whom FSFL will be continued. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-85 
Par. 245 

245 Conveyance by Borrower to CCC 

A Collateral Conveyance to CCC 

Borrowers with FSFL’s not in default or called by CCC may voluntarily convey collateral to 

CCC by signing CCC-400. 

B County Office Action

County Offices shall take sale action according to paragraph 271 and work closely with the 

regional OGC to sell the collateral. 

246 CCC-400 

A Preparing CCC-400 

County Offices shall prepare CCC-400 according to the following table. 

Item Instructions 

1 Enter County Office name, address, and phone number. 

2 Enter State code, county code, FY, and FSFL number. 

3 Enter borrower’s name and address. 

4 Enter borrower’s phone number. 

A 

*--(1)-(4) Enter date, month, year of this CCC-400, and borrower’s name. 

(5) Enter principal amount owed, written out. 

(6) Enter principal amount owed, in numerals. 

 (7)--* Enter description of the FSFL collateral. 

H 

1A and 1B Witness, unrelated to the borrower, shall sign and date. 

1C and 1D Borrower shall sign and date. 

2A and 2B Second witness, unrelated to the borrower, shall sign and date. 

2C and 2D Borrower’s spouse shall sign and date. 

3 COC chairperson shall sign. 

3A and 3B Authorized representative of CCC shall sign and date. 

4A and 4B Authorized representative of CCC shall sign and date. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 12-86 
Par. 246

246 CCC-400 (Continued)

B Example of CCC-400

The following is an example of a completed CCC-400.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 12-87
Par. 246

246 CCC-400 (Continued)

B Example of CCC-400 (Continued)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-88
Par. 247

*--247 Financial Hardship Annual Installment Deferral 

A Applicability

FSFL borrowers experiencing financial hardship may request an annual installment deferral 

which will extend the next installment due date by 1 year. Approval of annual installment 

deferral may only be granted 1 time during the FSFL term.

Borrowers with more than 1 outstanding FSFL may request an annual installment deferral for 

each FSFL.

Delinquent FSFL’s approved for an annual installment deferral will not be accelerated, 

foreclosed, or liquidated, and allows the County Office to cease further collection actions. 

B One-Year Term Extension 

Outstanding FSFL’s with a term of 3, 5, 7, or 10 years may receive a one-time only, one-year 

term extension and will have a new maturity date. 

The outstanding principal balance will continue to accrue daily interest at the original interest 

rate until the FSFL is paid in full.

The original interest rate and annual payment due date will remain the same.

The one-year extension is not authorized for a 12-year term FSFL.

Note: The 2018 Farm Bill, Section 1614 specifies that under no circumstances can a storage 

facility loan have a term of more than 12 years. Accordingly, extensions can be 

approved, but the extension cannot have a maturity date beyond the maximum 

12-year term maturity permitted under law. 

C FSFL Deferment Request CCC-777

Borrowers will request to defer the annual installment by completing CCC-777. 

Borrowers are required to:

• describe the financial hardship(s) that makes it hard to pay the FSFL annual installment 

payment

• upon request, provide COC or STC documentation to support the financial hardship

• submit the request before the loan term expires.

For current FSFL’s, CCC-777 will only be accepted when the next installment is due within 

60 calendar days or less. 

Example: Next installment due date is February 1, 2022, then CCC-777 cannot be accepted 

before December 1, 2021.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-89
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

D FSFL Approval Authority to Approve CCC-777 

To protect CCC’s financial interests, approval authority for CCC-777 is as follows.

IF the total aggregate outstanding 

FSFL balance amount is... THEN the approval authority is...

$25,000 or less CED and/or FSA employee with loan approval 

authority, if designated approval authority by 

STC.

$100,000 or less COC.

$100,000.01 to $250,000 COC approval after DD review.

$250,000.01 or more STC.

Notes: STC may delegate approval authority to SED or DAFO-appointed acting SED. 

For CCC-777 approval authority for employees and relatives, see subparagraph 10 C. 

Once approval is granted on CCC-777, borrowers must sign and date the CCC-186 

Addendum no later than 15 business days after CCC-777 approval.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-90
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

E Instructions for Completing CCC-777

Complete CCC-777 according to the following instructions.

Item Instructions

1A Enter State code.

1B Enter county code.

1C Enter DLS-assigned FSFL number that is formatted with FY and FSFL 

number; for example, “2021/00002”.

2A Enter the contact person, if different from borrower.

2B Enter the borrower’s name and address.

2C Enter telephone number.

3A Enter the FSFL outstanding amount.

3B Enter the current FSFL term year.

Example:The FSFL was disbursed with a 7-year term and the FSFL 

installment deferral request was received during the 4th year of the 

FSFL term.

4 Briefly describe the financial hardship(s) that makes it hard to pay the FSFL 

annual installment payment.

5A 

through 

5G

Enter answer to each question by checking () “YES” or “NO”.

6 Review the deferral payment option requirements to extend the FSFL term for 

one-year.

7A and 7B Enter answer to each question by checking () “YES” or “NO”.

8A and 8B Borrower’s signature and date.

9A

through 

13C

Co-borrower’s name, signature, and date.

14 Enter COC/STC determination by checking ()“Approved” or “Disapproved.

15A

through 

15C

Enter COC/STC name, signature and date.

16 Enter any additional remarks.

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-91
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

F Example of CCC-777

The following is an example of CCC-777.

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-92
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

F Example of CCC-777 (Continued)

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-93
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

G Determining Eligibility

For all CCC-777 requests, the following must be submitted to support the request and assist 

with a financial analysis determination: 

• a current balance sheet, income and expense statements, and credit report for all required 

borrowers 

• a letter explaining the borrower(s) future plan to ensure the deferred installment will be 

paid within 1 year, on or before the new due date. 

A new FSFL credit action in FBP will document the analysis and recommendation of the 

loan official. 

If after the completion of the financial analysis it is determined the borrower currently has 

the financial means to pay their current installment amount, the CCC-777 must be 

disapproved and the borrower will be sent an adverse determination letter. This 

determination is no appealable. See Exhibit 83 for an example of the adverse determination 

letter.

CCC-777 must be properly completed and signed by:

• the contact borrower

• all co-borrowers. 

All parties who originally signed the CCC-186 must agree to the CCC-777 terms and 

conditions. 

See subparagraph 82 B for credit report authorization provisions.

Notes: The borrower is not required to pay a fee for the FSFL installment deferral. 

There is no prepayment penalty for an early loan payoff. 

At any time while the FSFL is outstanding the borrower may have another eligible 

producer assume the outstanding FSFL according to paragraph 234.

The borrower may receive a one-time annual installment deferral for the entire FSFL 

term and subsequently, receive a one-time only 120-calendar day later payment of an 

annual installment according to subparagraph 211 E.

The borrower is not eligible for a new FSFL until all FSFL’s approved for an 

installment deferral have been paid in full. 

FSFL’s secured by an Irrevocable Letter of Credit that fully secures the FSFL are not 

eligible for an installment deferral. See subparagraph Q.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-94
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

H FSFL Deferral Calculator for Re-Amortizing the Installment

County Offices will use the instructions in subparagraph F to complete the FSFL deferral 

calculator authorized by the National Office. 

The authorized FSFL deferral calculator can be accessed at 

https://www.fsa.usda.gov/programs-and-services/price-support/Index. 

The borrower(s) must:

• review the completed FSFL deferral calculator

• agree to the installment amounts for the remainder of the FSFL term

• sign the completed and printed calculator before the CCC-186 Addendum is prepared. 

After completion of the FSFL deferral calculator a second party review is required. The 

calculator may be prepared by the FSFL County Office employee. 

State and County Offices, including FLP staff must not use any unauthorized form or 

spreadsheet to re-amortize the FSFL.

Note: No action will be taken in DLS to re-amortize the FSFL.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-95
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

I Instructions for Completing Deferral Calculator

Access DLS and go to the FSFL Loan Inquiry Screen for the borrower to obtain information 

needed for completing the deferral calculator. 

The following table provides the field descriptions and actions for the deferral calculator.

Field Description Action

Next Installment Date Enter the Next Installment Date in DLS in MM/DD/YYYY format.

FSFL Loan Number Enter the loan number in DLS.

Original Loan 

Maturity Date

Determine the original loan maturity date based on the number of years 

displayed for loan term and when the loan was closed in DLS.

Example: Loan closed 6/15/2015 + 7 year loan term = original maturity 

date 6/15/2022.

Note: The new maturity date will automatically populate in the calculator 

after all required data is entered.

Loan Principal 

Balance

Enter the outstanding loan principal in DLS.

Outstanding Accrued 

Interest

Access Loan Payoff as of Accrual Date in DLS and change the accrual 

date to match the date of the next installment. Then enter the outstanding 

accrued interest displayed as of the date of the next installment date. 

If the loan is behind, then manually calculate the additional interest due by 

multiplying the number of days past due by the daily interest accrual rate 

in DLS.

Example: Borrower is 35 days past due and the daily interest accrual 

rate is $3.04 per day. Multiply 35 x $3.04 = $106.40. Add 

the $106.40 to the outstanding accrued interest as of the date 

of the next installment date.

Interest Rate Enter the interest rate in DLS.

Number of 

Installment Payments 

Remaining

Access the “History” tab under FSFL Loan Inquiry and review the Loan 

History Transactions to determine the total number of installments 

remaining for the original loan. 

Example: loan term = 7 / total payments made in full = 4 / installments 

remaining = 3.

Note: Borrowers with a 12-year loan term are not eligible for an 

installment deferral.

Next Installment 

Amount 

If the payment status shows:

• “Ahead” then use the total due or next installment amount

• “Behind” then use next installment total due

• “Current” then use next installment amount.

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-96
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

J Example of the Deferral Calculator

The following is an example of the FSFL deferral calculator.

Access the calculator at https://www.fsa.usda.gov/programs-and-services/pricesupport/Index.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-97
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

K CCC-186 Addendum

State and County Offices will: 

• prepare the CCC-186 Addendum using the approved CCC-777

• prepare the CCC-186 Addendum not later than 15 calendar days after CCC-777 is 

approved

• ensure all borrowers have agreed to the installment deferral changes, such as: 

• payment amounts provided on FSFL deferral calculator 

• next installment due date 

• new FSFL term maturity date.

Notes: After all approval actions have been completed, a copy of the CCC-777, FSFL 

deferral calculator, and CCC-186 Addendum must be provided to the contact 

borrower. 

The original documents must be maintained in the borrower’s FSFL folder.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-98
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

L Instructions for Completing CCC-186 Addendum

Complete CCC-186 Addendum according to the following instructions.

Notes: Items 1, 2, 9, and 10 must be completed by State or County Office staff.

Items 3 through 8 must be completed by debtor and co-debtors.

Item Instructions

1A Enter name of FSFL debtor.

1B Enter loan number.

1C Enter the current FSFL term year.

1D Enter the FSFL outstanding amount.

Note: The FSFL outstanding amount can be found in DLS.

2B and 2C Enter information for the approved installment deferral.

3A 

through

3C

Enter the debtor’s name, signature, and date.

4A 

through 

8C

Enter the co-debtor’s name, signature, and date.

9A Enter signature of approving official.

9B Enter the approving official position title.

10 Enter the name and complete address including ZIP code for the FSA 

County Office.

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-99
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

M Example of CCC-186 Addendum

The following is an example of CCC-186 Addendum.

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-100
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

M Example of CCC-186 Addendum (Continued0

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-101
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

N Reporting to the National Office 

Immediately after all installment deferral approval actions have been completed, the State 

Office must provide a copy of the following to Toni Williams by e-mail to 

toni.williams@usda.gov:

• CCC-777

• FSFL deferral calculator signed by the borrower(s)

• CCC-186 Addendum.

Notes: CCC-777 disapprovals must also be reported to the National Office. 

Notify National Office if the borrower is enrolled in TOP.

O Reminder and Notification Letter

If the borrower is current and has not received a reminder letter before signing the CCC-186 

Addendum, then the borrower’s loan information will not be forwarded to the National 

contractor for mailing of the FSFL reminder letter.

P Borrower’s Currently Enrolled in TOP 

If a borrower is currently delinquent and entered in TOP, the borrower may apply for an 

FSFL installment deferral on CCC-777. If CCC-777 is approved and CCC-186 Addendum is 

signed by all parties, the borrower(s) will be removed from TOP by the National Office when 

the deferral is reported according to subparagraph O.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-102
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

Q FSFL’s Secured With an Irrevocable Letter of Credit 

If an FSFL is fully secured with an Irrevocable Letter of Credit, the borrower is not eligible 

for the FSFL installment deferral. The CCC-777 must be disapproved and an adverse 

determination notification letter must be mailed to the borrower. The County Office must 

also note in the CCC-777 “Remarks” section that they will work with the financial institution 

to collect the FSFL installment payment. 

The National Office will review all cases when the FSFL is partially secured with an 

Irrevocable Letter of Credit. For guidance, State Offices must contact National Office by 

email to toni.williams@usda.gov.

See Exhibit 83 for an example of the adverse determination letter.

R Completing FSA-850 

FSA-850 is required to be completed; however, a field visit is not required. County Offices 

must work with the State Office Environmental Coordinator as it pertains to categorical 

exclusion action. 

S Security Documents 

County Offices must ensure the expiration date on all FSFL security documents, such as but 

not limited to real estate mortgages, Deed of Trust, severance agreement, and UCC-1 filings 

are effective through the new loan maturity date. 

T CCC-195 Servicing Checklist 

The County Office must note on the CCC-195 Servicing checklist “Remarks” section that the 

FSFL was approved for an installment deferral and mark “N/A” along with initials and dates 

for items 6A, 6B, 6C, and 6E. All other CCC-195 Servicing checklist items must be 

completed.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-103
Par. 247

*--247 Financial Hardship Annual Installment Deferral (Continued)

U DLS Software for Annual Installment Deferral 

DLS software is not programmed to do the following for an installment deferral: 

• record FSFL installment deferral 

• enter CCC-777 information 

• change annual installment amounts 

• extend FSFL maturity date, if applicable 

• create and print an CCC-186 Addendum. 

Until DLS software is enhanced for the new servicing option, the National Office will 

manually track all approved FSFL installment deferrals, and a monthly report will be 

provided to FPAC FMD and BUD. 

See subparagraph O for reporting FSFL installment deferrals to National Office.

State and County Offices will be notified when DLS software is programmed for FSFL 

annual installment deferrals.--*

248-261 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 12-104
Par. 262 

Part 13 Delinquent Servicing

262 Delinquent FSFL’s

A STC Review of Payment Status

STC or representative shall ensure that County Offices are:

• sending required demand letter the next workday after the installment due date

• sending other required demand letters timely

• following correct procedure for collecting any delinquent payments 

• documenting all delinquent servicing on CCC-195 Servicing. 

FSA Enterprise Data Warehouse reports are available to identify FSFL loans that are 

delinquent. These include: 

• FSFL Delinquency Report 

• Status of Farm Storage Facility Loans Report. 

See 2-FSFL, Part 8. 

B Failure to Pay Installments Policy

[7 CFR 1436.13] If installments are not paid by the due date, County Offices shall: 

• consider FSFL’s delinquent for FSFL purposes and eligible for offset from any payments 

due the borrower on the next workday after the due date, when the delinquent “behind” 

installment balance remaining after payment exceeds $100

• prepare and mail a first demand letter (Exhibit 72) to the contact borrower and all 

co-borrowers on the next workday after the due date, describing actions that may be 

taken against the borrower if the installment is not paid within 30 calendar days of the 

date of the letter

• on the next workday after the due date, set the “Other Debt Offsets” flag in the 

borrower’s customer profile through FSA-FS

• in addition to the first demand letter (Exhibit 72), prepare and mail 2 subsequent demand 

letters at 30-calendar-day intervals if the installment is not paid

• complete an inspection according to subparagraph 215 A if the payment is not made 

within 30 days of the due date 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-1
Par. 262

262 Delinquent FSFL’s (Continued)

B Failure to Pay Installments Policy (Continued)

• initiate collection action against a borrower’s pro rata share of payments due any entity 

that the borrower participates in, either directly or indirectly

• initiate collection action against related persons or entities, irrespective of the borrower’s 

share when CCC determines that the borrower has established an entity or reorganized, 

transferred ownership, or changed their operation for the purpose of avoiding payment of 

the debt

• cease collection activity until any appeal activity by the borrower is complete, but 

withhold any FSA or CCC payments to the borrower for later offset

Note: Delinquent installments cannot be moved out of FSFL and a receivable 

established in NRRS. This is because a portion of the outstanding principal is not

due and because collateral that could be foreclosed on exists.

• for delinquent installment balances greater than $500, initiate foreclosure actions only 

after all efforts to collect the installment have been exhausted under delinquency policy.

Delinquent FSFL’s will be referred to TOP 120 calendar days after the installment due date. 

National Office will initiate the referral to TOP.

Notes: If determined necessary, County Offices should discuss with the producer, the option 

to have FSFL assumed by another eligible producer.

Contact the National Office for additional guidance.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-2
Par. 262 

262 Delinquent FSFL’s (Continued)

C Updating Flags for Delinquent FSFL Borrowers

On the next workday after the installment due date, County Offices shall set the “Other Debt 

Offset” flag in FSA-FS, under Customer Profile, on all borrowers listed on the delinquent 

FSFL, according to 63-FI. Remarks must be provided with the reason for the flag and the 

County Office contact information.

A screen shot verifying the “Other Debt Offset” flag was set must be maintained in the 

borrower’s FSFL folder.

D Demand Letters

Demand letters for delinquent FSFL installment payments (Exhibit 72) are manually 

prepared by County Office employees. 

This subparagraph also applies to collecting over disbursements, according to paragraph 199. 

E Delinquent FSFL’s for DCIA Purposes

DCIA specifies that no person may obtain any Federal financial assistance in the form of a 

loan (other than a disaster loan) or a loan guarantee if such person has an outstanding Federal 

non-tax debt that is in a delinquent status. Further, any such person may obtain additional 

Federal financial assistance only after such delinquency is resolved.

County Offices shall consider FSFL’s delinquent for DCIA purposes when either of the 

following occurs: 

• a due and payable FSFL installment is not paid in full within 90 calendar days after the 

due date 

• the installment principal balance, after a due and payable installment is applied, exceeds 

$500 within 90 calendar days after the due date. 

When FSFL’s are over 90 calendar days delinquent, and delinquent amount is greater than 

$500, then County Offices shall, in the web-based Subsidiary Eligibility Screen, Delinquent 

Debt Section, CLICK “Yes” to the question, “Does the producer have an outstanding 

delinquent Federal non-tax debt?”, according to 3-PL, paragraph 33. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-3 
Par. 262

262 Delinquent FSFL’s (Continued)

F FSFL Acceleration

CCC may:

• declare the entire indebtedness immediately due and payable if the borrower: 

• violated any of the terms and conditions of the application and/or note and security 

agreement

• abandons the FSFL collateral

• breaches any of the terms and conditions of any of the instruments executed in 

connection with FSFL

• call FSFL if the collateral is used in connection with any commercial operation, including 

but not limited to, elevators, warehouses, dryers, or processing plants during the life of 

FSFL. See paragraph 263. 

Note: FSFL may be paid in full or in part at any time before maturity without penalty. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-4 
Par. 262

262 Delinquent FSFL’s (Continued)

G Timeline for FSFL Annual Installments

The following timeline should be followed for annual installment payments:

When Action Reference

45 calendar days 

before annual 

installment due date.

* * *

• Prepare CCC-195 Servicing

(Exhibit 71), including all servicing 

discussions and actions.

* * *

• Paragraph 210.

Next workday after 

annual installment 

due date.

• Send First Demand Letter (Exhibit 72).

• Update CCC-195 Servicing.

• Update FSA-FS, “Other Debt Offset” 

flag for all borrowers, including entity 

in which borrower is member.

• Offset any payment due the borrower 

including pro rata share of an entity’s 

payment.

• Subparagraph B.

• Paragraph 210.

• Subparagraph E.

• Paragraph 83.

30 calendar days after 

first demand letter.

• Send 2nd demand letter. Same as the 

first demand letter (Exhibit 72).

• Update CCC-195 Servicing.

• Subparagraph B.

• Paragraph 210.

30 calendar days after 

2nd demand letter.

• Send 3rd demand letter. Same as the 

first demand letter (Exhibit 72).

• Update CCC-195 Servicing.

• Subparagraph B.

• Paragraph 210.

90 calendar days after 

installment due date.

Set the Subsidiary “Delinquent DCIA” flag. Subparagraph C.

120 calendar days 

after installment due 

date.

National Office will confirm the borrower 

can be referred to TOP. If borrower pays, 

notify the National Office immediately.

Subparagraph B.

Acceleration. • CCC may declare the indebtedness 

immediately due and payable.

• Update CCC-195 Servicing.

Contact National Office for additional 

guidance.

• Subparagraph F.

• Paragraph 210.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 13-5
Par. 263

263 Calling FSFL’s

A Basis for Calling

COC shall call outstanding FSFL’s and declare the entire debt due and payable when any of 

the following apply:

• the borrower:

• has not paid an installment when due (due process must be provided)

• has not requested deferral of an installment 

• does not maintain the required auto, crop, flood or structural insurance

• has made representations or warranties about FSFL that prove to be false

• does not comply with any covenants or agreements in connection with FSFL or in the 

application for FSFL

• dies or becomes incompetent and there is no one to continue FSFL

• abandons the FSFL collateral and has not repaid FSFL or authorized CCC to sell the 

FSFL collateral

• the FSFL collateral is relocated without COC approval

• the mortgaged property is attached or levied by execution, decree, or other court process

• CCC has sound reasons to consider itself insecure about FSFL.

Example: The condition of the FSFL collateral, such as a storage structure, has 

deteriorated to the extent it has little or no value, and there are several years 

remaining on the FSFL term.

If it is determined the borrower is no longer farming, the County Office should discuss with 

the borrower the option of having another eligible producer assume the outstanding FSFL.

Note: If there are questionable situations, State Offices should contact the National Office 

for guidance.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-6
Par. 263

263 Calling FSFL’s (Continued)

B COC Action

COC shall:

• follow subparagraph A when considering calling FSFL’s to protect CCC’s interests

• consult State Office

• take action to call any FSFL approved by COC

• provide recommendations by memorandum to STC to call any FSFL approved by STC.

C Potential Violations

If the reasons for calling FSFL involve potential civil or criminal violations, County Offices 

shall:

• report the case to OIG through the State Office

• provide a full statement of the facts of the case with applicable documentation through 

the State Office to OIG

• not make recommendations about any administrative action according to 9-AO, 

subparagraph 50 D

• take action only after receiving legal advice from OGC.

D Notifying Borrower

On final determination to call FSFL, County Offices shall:

• notify the borrower using the letter in subparagraph E

• file a copy of the letter in the FSFL folder.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-7
Par. 263

263 Calling FSFL’s (Continued)

E Preparing Call Letter

Prepare the following Call Letter for all borrowers who signed CCC-186 and file a copy in 

the FSFL folder. Send the Call Letter by certified mail, return receipt requested, 30 calendar 

days after the date of the last demand letter sent according to subparagraph 262 D, if: 

• an installment due has not been paid in full 

• there has been a violation of the terms and conditions of CCC-186 or the regulations at 

7 CFR Part 1436. 

Note: Modify the Call Letter to explain violations, as applicable. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-8 
Par. 263

263 Calling FSFL’s (Continued)

E Preparing Call Letter (Continued)

The following shall be reproduced locally on FSA County Office letterhead.

Note: This letter is available on the FFAS Employee Forms/Publications Online web site at

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

Par 263”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-9
Par. 264

264 Liquidation Actions

A Payment Not Received

When FSFL is called and payment is not received within 30 calendar days from the date of 

the letter in subparagraph 263 E, County Offices shall: 

• notify the State Office of pending liquidation 

Note: The State Office shall contact PSD for instructions on how to process the 

liquidation in the automated FSFL system.

• consult, as needed, with the regional OGC through the State Office 

• send the Liquidation Letter in subparagraph C and a copy of the promissory note 

• not establish a claim until CCC has disposed of FSFL collateral according to this part. 

Note: If there are questionable cases, State Offices should contact the National Office for 

guidance. 

B Borrower Options

County Offices shall explain the following options to the borrower: 

• voluntarily agree to allow removal of the collateral to facilitate sale by signing CCC-400, 

according to subparagraph 246 A 

• object to removing collateral and require formal court foreclosure before collateral can be 

sold and removed. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-10 
Par. 264

264 Liquidation Actions (Continued) 

C Preparing Liquidation Letter

If the FSFL amount plus interest is not paid, prepare the following Liquidation Letter: 

• to all borrowers who: 

• signed CCC-186 

• signed real estate mortgage for FSFL security

• by certified mail, return receipt requested

• with CCC-400 enclosed and prepared according to subparagraph 246 A 

• 30 calendar days after the date the Call Letter was sent according to subparagraph 263 E 

• with a copy to the FSFL folder. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-11 
Par. 264

264 Liquidation Actions (Continued)

C Preparing Liquidation Letter (Continued)

The following shall be reproduced locally on FSA County Office letterhead.

Note: This letter is available on the FFAS Employee Forms/Publications Online web site at 

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

Par 264”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-12
Par. 265

265 Reinstatements

A Reinstating FSFL’s

County Offices shall reinstate FSFL’s under regular terms when all of the following apply:

• CCC has not taken possession of the collateral

• borrower files a written request and satisfies COC that:

• the payment was not made for reasons beyond the borrower’s control

• borrower had made a good faith effort to comply with FSFL terms

• current installment is paid.

B Reinstated FSFL Terms and Conditions

When FSFL’s are reinstated, all original terms and conditions of FSFL, according to the 

applicable CCC-186 and any other security documents, shall apply.

266-270 (Reserved)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-13

(through 13-30)
.
Par. 271 

271 Sale of Collateral 

A Selling FSFL Collateral

[7 CFR 1436.16] The collateral securing FSFL shall be sold by CCC whenever: 

• CCC has called FSFL and it has not been repaid 

• the borrower voluntarily conveys the collateral to CCC before repaying FSFL according 

to paragraphs 245 and 246 

• the borrower desires to convey other property securing FSFL without repaying FSFL. 

B COC Approval Requirement

Before a borrower sells or conveys the facilities or other property securing FSFL without 

repaying FSFL in full, the borrower shall obtain approval for sale or conveyance from COC. 

C Releasing FSFL Documentation 

County Offices shall not release any documents to release any liens, security, or allow 

removal of the FSFL collateral until the full payment has been received according to 

paragraph 218. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-31 
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral 

A Action Instead of Foreclosure

When FSFL’s have been called and a Liquidation Letter (paragraph 264) has been issued to 

the borrower, the collateral must be sold to liquidate FSFL. FSFL with collateral that is 

considered portable and is not secured by real estate may be liquidated or partially liquidated 

under the terms of CCC-186. County Offices shall: 

• obtain borrower’s signature and, if required by law, spouse’s signature on CCC-400 

prepared according to paragraph 246 

• perform a lien search, no more than 10 calendar days before sending the Notification of 

Disposition of Collateral Letter (subparagraph B), to search:

• property records where fixture filing was performed 

• UCC records

• send the Notification of Disposition of Collateral Letter to the following: 

• borrower 

• all co-borrowers 

• anyone who has notified CCC that they have interest in or claim to the collateral 

• any other secured party or lienholder whose interest: 

• is recorded in the county where the collateral is located

• is indexed under the borrower’s name 

• identifies CCC’s collateral as of 10 calendar days before the date of notification

• use the date the Notification of Disposition of Collateral Letter is sent as the date that 

CCC takes possession of the FSFL collateral

• determine, with assistance from a FSA employee with loan approval authority, the 

estimated resale value of the collateral if the collateral will be sold. The cost of the sale 

expenses will be estimated and subtracted from the estimated resale value to determine 

whether it is in CCC’s financial best interest to sell the collateral.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-32 
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

B Notification of Disposition of Collateral Letter

The following shall be reproduced locally on FSA County Office letterhead.

Note: This letter is available on the FFAS Employee Forms/Publications Online web site at 

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

Par 272B”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-33
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

C Refusal to Authorize Sale

County Offices shall contact the State Office:

• if the borrower refuses to sign CCC-400

• to request foreclosure advice from OGC and then act on directions received from OGC 

through the State Office

• for guidance if a lien filing is found and unsure if a notification letter should be sent.

D Sale Methods

With State Office concurrence and, in the case of foreclosure, at OGC’s direction, County 

Offices shall sell the collateral for the best price obtainable using the following methods:

• conduct public auction on the property where the collateral is located

• private sale if COC determines the method is considered most advantageous to CCC

• sealed bids, allowing 30 calendar days from bid announcement to bid opening.

Note: On any FSFL collateral sold by CCC, before the sale, COC must establish a fair 

market value to be documented in COC minutes. Send a memorandum to the State 

Office to be forwarded to PSD of established fair market value.

E Announcement of Sale and Invitation to Bid on CCC Loan Collateral

The following:

• is an example of an announcement of sale and invitation to bid on CCC loan collateral

• may be used in its entirety or modified to fit the situation

• shall be reproduced locally on FSA County Office letterhead.

Note: The borrower must be sent a Notification of Disposition of Collateral Letter

(subparagraph B) before CCC can advertise.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-34
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

E Announcement of Sale and Invitation to Bid on CCC Loan Collateral (Continued)

The following announcement shall be reproduced locally on FSA County Office letterhead.

Note: This letter is available on the FFAS Employee Forms/Publications Online web site 

athttps://intranet.fsa.usda.gov.dam/ffasforms/forms.html . CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

Par 272E”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-35
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

E Announcement of Sale and Invitation to Bid on CCC Loan Collateral (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-36
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

F Bid Form for CCC Loan Collateral

The following:

• is an example of a bid form for CCC loan collateral

• may be used in its entirety or modified to fit the situation

• shall be reproduced locally on FSA County Office letterhead.

Note: This letter is available on the FFAS Employee Forms/Publications Online web site at 

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

Par 272F”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-37
Par. 272

272 Liquidating FSFL’s Secured With Portable Collateral (Continued)

G Bill of Sale

After the sale, County Offices shall:

• complete and sign a bill of sale (subparagraph I)

• place the original bill of sale in the FSFL folder

• provide a copy to the following:

• borrower

• buyer.

H Distributing Sales Proceeds

Sales proceeds shall be distributed in the following order:

• satisfying borrower’s indebtedness to CCC, including cost of sale

• payment to junior lienholders if approved by OGC

• payment to the borrower.

Note: Establish a claim if the borrower’s debt is not completely liquidated by sale of the 

FSFL collateral.

DLS contains a process for FSFL liquidation. Following the sale of FSFL collateral, the 

County Office shall follow 2-FSFL, paragraph 551 to transfer FSFL to NRRS.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-38
Par. 272

272 Liquidating FSFL’s Secured by With Portable Collateral (Continued) 

I Example of Bill of Sale 

The following bill of sale shall be reproduced locally on FSA County Office letterhead. 

Note: This letter is available on the FFAS Employee Forms/Publications Online web site 

athttps://intranet.fsa.usda.gov.dam/ffasforms/forms.html . CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL 

 Par 272I”. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-39 
Par. 273 

273 Liquidating FSFL’s Not Secured by Real Estate With Nonmovable or Nonsaleable 

Collateral 

A Liquidating Actions 

When FSFL’s have been called and a Liquidation Letter has been issued to borrower, the 

collateral must be sold to liquidate FSFL. However, for FSFL’s with nonmovable or 

nonsaleable collateral and no real estate lien, the County Office shall: 

 obtain COC determination that the collateral cannot be moved or cannot be sold 

 have COC establish a fair market value for the collateral and document in COC minutes 

 obtain OGC advice through the State Office 

 if farm has been sold and the new landowner: 

 meets FSFL eligibility requirements, ask the new landowner to assume FSFL 

according to paragraph 234 

 does not assume FSFL, ask the new landowner to buy the collateral by private sale 

from CCC 

 if the collateral cannot be sold or there is a balance remaining after a sale, establish a 

*--receivable in NRRS for the outstanding balance, including interest and applicable sales 

costs, and notify the National Office of the amount liquidated in DLS.--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 13-40 
Par. 274

274 Liquidating FSFL’s Secured With Real Estate Liens 

A COC Action 

When FSFL’s secured with real estate have been called and a Liquidation Letter has been 

issued to borrower, the real estate must be foreclosed on and sold to liquidate FSFL. COC 

shall: 

 obtain OGC advice through the State Office 

 obtain an appraisal of the property with State Office approval 

 establish a fair market value or resale value before sale of the collateral and real estate. 

B State Office Action 

The State Office shall: 

 consult with OGC on what actions to take 

 coordinate foreclosure action with advice from OGC. 

C Foreclosure Sale 

If a foreclosure judgment is awarded by a court and a foreclosure sale is court-ordered and 

held, the County Office shall: 

 not be obligated to bid at the sale 

 enter a bid only if it is considered to be in the best interest of CCC. 

Note: Any bid entered by CCC shall not exceed the fair market value of the collateral and 

the real estate established by COC or the borrower’s outstanding debt, including 

interest. 

D Distributing Sales Proceeds 

Sales proceeds shall be distributed in the following order: 

 satisfying borrower’s indebtedness to CCC, including cost of sale and appraisal 

 payment to junior lienholders if approved by OGC 

 payment to the borrower. 

Note: Establish a claim if the borrower’s debt is not completely liquidated by sale of the 

FSFL collateral. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 13-41 
Par. 274

274 Liquidating FSFL’s Secured With Real Estate Liens (Continued) 

E If CCC Acquires Property 

Under certain circumstances, it may be in CCC’s best interest to bid at the foreclosure sale 

*--and acquire the real estate. FSA-851 processes should be completed to determine if there are 

environmental factors present which could impact value and influence the amount of FSA’s 

bid at foreclosure sale or, which must be disclosed to prospective buyers, or for which FSA 

needs to be indemnified as provided by 2-EQ should the agency become the owner of the 

property. See 5-FLP, Exhibit 60 for a worksheet of how to calculate net recovery value of a 

property and the appropriate amount of FSA’s bid.--* 

Example: If at a foreclosure sale, other bids are not equal to the fair market value or the 

borrower’s outstanding debt. 

If CCC acquires the real estate, the State Office shall: 

 obtain a copy of the entire FSFL folder, send to PSD, and include the following 

information in a cover memorandum: 

 name of borrower and FSFL number 

 description of property 

 amount of accrued interest to date 

 resale value established by COC 

 amount of any bids received plus amount paid by CCC 

 STC recommendations for disposing of property 

 instruct the County Office to dispose of the property as authorized by PSD and OGC 

 instruct the County Office to transfer any outstanding balance to claims after disposing of 

the real estate. 

275-290 (Reserved) 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 13-42 
Par. 291

Part 14 Bankruptcy

291 Bankruptcy Actions

A Notification

After notification by a bankruptcy court that a borrower has filed or is filing for bankruptcy, 

County Offices shall:

• perform a UCC chattel and fixture lien search to verify CCC’s lien position, according to 

subparagraphs 144 A and B

• send a copy of the notice of filing to the State Office for forwarding to the regional OGC

• not take any action:

• to possess or sell the collateral

• prohibited by the Bankruptcy Code

• obtain advice from OGC through the State Office before taking any action against the 

person or property filing a petition for bankruptcy.

Notes: With the approval of the regional OGC, it is strongly suggested that the State 

Office file a Proof of Claim (Form 410) on all FSFL’s in bankruptcy with the 

bankruptcy court by the due date, including copies of the following:

• CCC-186

• CCC-190

• CCC-295A

 CCC-295C

• CCC-297

• equipment lists

• UCC-1’s and amendments.

The Proof of Claim (Form 410) can be found at 

http://www.uscourts.gov/services-forms/forms?k=&c=67&=Apply or 

http://www.uscourts.gov/sites/default/files/form_b_410_16.pdf.

*--See 63-FI and follow instructions for entering bankruptcy in FSA-FS--*.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 14-1
Par. 291

291 Bankruptcy Actions (Continued)

A Notification (Continued)

After receiving notification of a bankruptcy filing, the State Office shall e-mail the following 

*--bankruptcy information to Toni Williams at toni.williams@usda.gov and Kimberly Kempel 

at kimberly.kempel@usda.gov:--*

• name and address of borrower

• State and county

• year and FSFL number

• date of bankruptcy filing

• bankruptcy chapter filed

• FSFL principal balance at bankruptcy filing

• original FSFL principal

• date FSFL disbursed

• verification that UCC filing is current

• provide expiration date of UCC filing.

B Form B10, Proof of Claim

After receiving guidance from OGC, State Offices may delegate to County Offices to file

Form B10 with the Bankruptcy court, if advised and based on type of bankruptcy filed.

The following cite should be considered when a FSFL debtor has filed bankruptcy and 

Form B10 is required.

“11 U.S.C. § 502(b)(9) (“a claim of a governmental unit shall be timely filed if it is filed 

before 180 days after the date of the order for relief or such later time as the Federal 

Rules of Bankruptcy Procedure may provide”); Fed. R. Bankr. P. 3002(c)(1) (“A proof of 

claim filed by a governmental unit, other than for a claim resulting from a tax return filed 

under § 1308, is timely filed if it is filed not later than 180 days after the date of the order 

for relief. A proof of claim filed by a governmental unit for a claim resulting from a tax 

return filed under § 1308 is timely filed if it is filed no later than 180 days after the date 

of the order for relief or 60 days after the date of the filing of the tax return. The court 

may, for cause, enlarge the time for a governmental unit to file a proof of claim only on

motion of the governmental unit made before expiration of the period for filing a timely 

proof of claim.”).”

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 14-2
Par. 291

291 Bankruptcy Actions (Continued)

C Reorganization Plans

After the court notifies either the State or County Office that a confirmed plan of 

reorganization has been approved and the terms and conditions of CCC-186 and 

*--supplemental documents are changed by court order, County Office or State Office must:

• establish bankruptcy reorganization plan in DLS according to 2-FSFL, paragraph 552.--*

Notes: If the terms and conditions of CCC-186 and supplemental documents are changed 

by court order, the County Office through the State Office, shall contact PSD for

the correct and up-to-date procedures to follow to revise FSFL terms.

A copy of the reorganization plan must be provided by e-mail to

 *--toni.williams@usda.gov and kimberly.kempel@usda.gov.--*

• accept payments according to the reorganization plan

• refer the claim to OGC for legal action if a borrower defaults on the payment schedule or 

any provision of the court-approved plan

●*--notify the National Office when the Bankruptcy Reorganization Plan has been satisfied.

D State Office Reporting Requirement to National Office 

State Offices must notify National Office immediately of any communication from:

• bankruptcy court

• bankruptcy trustee

• regional OGC

• payments made according to the bankruptcy plan (screen print from DLS).

States with FSFL producers who have filed bankruptcy must submit a quarterly report to the 

National Office by the following date summarizing any activity during the quarter related to 

the FSFL in bankruptcy including communication with the bankruptcy court, bankruptcy 

trustee, regional OGC, and payments. If there was no activity related to the bankruptcy 

during the quarter a negative report is required. The quarterly reports are due to 

kimberly.kempel@usda.gov: 

• December 31

• March 31

• June 30

• September 30.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 14-3
Par. 291

291 Bankruptcy Actions (Continued)

E Selling Collateral

If the bankruptcy court authorizes CCC to sell the collateral, rather than accepting payments 

according to a reorganization plan, County Offices shall:

• ask the borrower to sign CCC-400:

• prepared according to paragraph 246

• revised with OGC advice

• sell FSFL collateral according to Part 13

• apply sales proceeds to the outstanding FSFL amount

• if sales proceeds exceed the amount due CCC, refund the excess amount to the producer

• transfer the unpaid FSFL balance to claims if:

• there is an unpaid FSFL balance

• collateral has been sold

• FSFL has been discharged by the bankruptcy court.

When FSFL collateral is sold under a bankruptcy plan, the following information must be 

sent to PSD:

• fair market value determined by COC

• sales proceeds received

• date sales proceeds received

• sales expenses

• date FSFL liquidated.

292-300 (Reserved)

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 14-4
Par. 301 

Part 15 Fees 

301 Program-Related Codes 

A Collecting Application Fees 

An FSFL application fee of $100 per FSFL applicant must be collected according to 

paragraph 58. Record the application fee as soon as it is collected in DLS. See 2-FSFL for 

correctly recording the FSFL application fee. 

In addition to the FSFL application fee, the applicant is responsible for paying for certain 

filing fees associated with their FSFL as identified in subparagraph 58 C. 

The application fee for FSFL assumption must be collected when the assumption is 

requested, according to paragraph 234. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 15-1 
 Par. 302 

302 Issuing Payments for Lien Searches and Recording Fees 

A Fees Responsibilities 

CCC is responsible for paying fees for: 

 credit reports (paid by PSD) 

 lien searches on collateral 

 recording fees for financing statements on collateral. 

Note: A contract for obtaining all FSFL credit reports has been secured. The National 

Office is responsible for paying all costs associated with FSFL credit reports. 

The applicant shall pay all other fees according to subparagraph 58 C. 

 State and County Offices must use DLS for paying all fees for FSFL lien searches and 

financing statements.

B Paying Fees 

 County Offices must submit payment requests for FSFL lien search and recording fees 

according to current 2-FSFL procedures.

 *--Note: Recoverable fees can only be processed using the “pay now” or “pay later” options. 

Therefore, the user is not authorized to select “credit card” for FSFL recoverable 

fees.--* 

1-16-20 1-FSFL (Rev. 3) Amend. 4 Page 15-2 
Par. 303 

303 Reimbursable Fees 

A Reimbursable Fee 

An example of a reimbursable fee is the borrower repaying the County Office for CCC-297 

filed for the producer. According to subparagraph 58 C, the borrower is responsible for the 

cost associated with the filing of CCC-297. Other examples include, but are not limited to, 

the following: 

 filing and recording CCC-297 and other forms related to a lien on real estate 

 filing a release or discharge of a real estate mortgage or deed of trust 

 filing a discharge of CCC-297 

 terminating a financing statement using a UCC document. 

FSFL recoverable and/or reimbursable costs are the responsibility of the borrower, but in 

some instances may be paid on behalf of the borrower by CCC because of timing issues, and 

then collected back from the borrower. See 2-FSFL for guidance on entering recoverable 

fees in DLS. 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 15-3 
Par. 303 

303 Reimbursable Fees (Continued) 

B Payments for Reimbursable Fees Submitted by County Office 

County Offices must: 

●*--use DLS to pay for FSFL reimbursable fees that will be reimbursed by the 

applicant/borrower, according to 2-FSFL--* 

* * * 

●*--submit the payment request for reimbursable fees according to current 2-FSFL 

procedures.--* 

* * * 

C UCC Recording Fee 

CCC is responsible for payment of lien searches on collateral and UCC-1 recording fees for 

 *--financing statements on collateral. See 2-FSFL. 

When FSFL’s are paid in full, the UCC termination fee is the responsibility of the borrower, 

and the UCC termination fee must be processed according to subparagraphs A and B.--* 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 15-4 
Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority Reports

None

Forms

This table lists all forms referenced in this handbook.

Number Title

Display 

Reference Reference

AD-1026 Highly Erodible Land Conservation (HELC) and 

Wetland Conservation (WC) Certification

69, Ex. 32

410 Proof of Claim 291

CCC-10 Representations for Commodity Credit Corporation 

or Farm Service Agency Loans and Authorization to 

File a Financing Statement and Related Documents

Ex. 53 69, 141

CCC-185 Loan Application for Farm Storage Facility Loan 

Program

Ex. 28 Text, Ex. 32

CCC-185-1 Loan Application for Farm Storage Facility Loan 

Program (CCC-185 Continuation Sheet)

 25

CCC-185D Determination for Farm Storage Facility Loan 

Program

Ex. 58 Text

CCC-186 Farm Storage Facility Loan Program Promissory 

Note and Security Agreement

Ex. 67 Text, Ex. 2, 32

CCC-186 

Addendum

Addendum to the Farm Storage Facility Loan 

Promissory Note and Security Agreement

247

CCC-186-1 Farm Storage Facility Loan Program Promissory 

Note and Security Agreement

(CCC-186 Continuation Sheet)

Ex. 67 6

CCC-190 Farm Storage Facility Loan Program Lien Waiver Ex. 56 144, 156, 291,

Ex. 32

CCC-191 Farm Storage Facility Loan Program Release of 

Liability

173 Text, Ex. 32,

64

CCC-193 Real Estate Mortgage for Farm Storage Facility 

Loan Program

Ex. 6 6, 143, Ex. 32

CCC-193-D Farm Storage Facility Loan Deed of Trust for (State 

of )

Ex. 6 6, 143

CCC-194 Farm Storage Facility Loan Subordination 

Agreement (Lien on Real Property)

Ex. 57 144, 156,

Ex. 32

CCC-195 Farm Storage Facility Loan (FSFL) Processing 

Checklist

Ex. 29 74, 185, 247

Ex. 32

CCC-195

Servicing

Farm Storage Facility Loan (FSFL) Servicing 

Checklist

Ex. 71 209, 210, 215,

247, 262

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1
Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority Reports (Continued)

Forms (Continued)

Number Title

Display 

Reference Reference

CCC-195A Farm Storage Facility Loan (FSFL) Security 

Checklist

Ex. 30 74, 175, 185

CCC-195B Farm Storage Facility Loan (FSFL) No Security 

Checklist

Ex. 31 74, 175, 185

CCC-195 

Servicing TS

Farm Storage Facility Loan (FSFL) Servicing 

Checklist – Temporary Suspension

210

CCC-197 Final Farm Storage Facility Loan (FSFL) Program 

Cost Certification

Ex. 64 156, 170, 174,

175

CCC-257 Schedule of Deposit 218

CCC-295A Farm Storage Facility Loan Program Final 

Inspection of Permanently Affixed FSFL Collateral 

Before Loan Disbursement 

171 170, 233, 291

Ex. 32

CCC-295B Form Obsoleted on 2/12/13

CCC-295C Farm Storage Facility Loan Program Final 

Inspection of Portable Drying and Handling 

Equipment/Storage/

Handling Truck Before Loan Disbursement

171 170, Ex. 32

CCC-296 Farm Storage Facility Loan Program Certification 

of Attorney

187

CCC-297 Severance Agreement Ex. 68 Text, Ex. 32,

51

CCC-298 Farm Storage Facility Loan Program Assumption 

Agreement

234 6, Ex. 32

CCC-299 Title Opinion - Farm Storage Facility Loan Program 187

CCC-400 Farm Storage Facility Loan Program Agreement for 

Sale of Loan Collateral

246 6, 243, 245,

264, 272, 291

CCC-471 Non-Insured Crop Disaster Assistance Program 

(NAP) Application for Coverage with Buy-Up 

Option (2015 and Subsequent Crop Years) 

96

CCC-674 Certification of Contracts, Grants, Loans, 

and Cooperative Agreements

64

CCC-777 Farm Storage Facility Loan Deferment 

Request

247

CCC-901 Members Information Agricultural Act of 

2014

6, 69

CCC-902 Farm Operating Plan for Payment Eligibility 2009 

and Subsequent Program Years

35, 48, 49, 50

69

CCC-902E Farm Operating Plan for an Entity-Agricultural 

Act of 2014

6

CCC-941 Average Adjusted Gross Income (AGI) 

Certification and Consent to Disclosure of Tax 

Information - Agricultural Act of 2014

35

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2
Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority Reports (Continued)

Forms (Continued)

Number Title

Display 

Reference Reference

FSA-211 Power of Attorney 6

FSA-578 Report of Acreage 35, 48, 49, 50,

53

FSA-850 Environmental Evaluation Checklist Ex. 10 Text, Ex. 32

FSA-851 Environmental Risk Survey Form Text, Ex. 32

FSA-858 Determining If A Wetland May Be Present 10

FSA-2002 3 Years Financial History 85

FSA-2003 3 years Production History 85

FSA-2004 Authorization to Release Information 69, 82, 85,

Ex. 32

FSA-2015 Verification of Debts and Assets 85, Ex. 32

FSA-2037 Farm Business Plan Worksheet Balance Sheet 69, 85

FSA-2038 Farm Business Plan Worksheet 

Projected/Actual Income and 

69, 85

FSA-2071 Transmittal of Documents 218

FSA-2165 Administrative Appraisal Review for 

Real Estate Appraisals

Ex. 52

FSA-2319 Agreement With Prior Lienholder 121, 122, 156

FSA-2340 Selection of Attorney/Title Agent 187

FSA-2360 Report of Lien Search 144, Ex. 32

IRS-1065 U.S. Return of Partnership Income 6

IRS-1098 Mortgage Interest Statement 35, 211, 231

NRCS-CPA-052 Environmental Evaluation Worksheet 11, 110

SF-LLL Disclosure of Lobbying Activities 64

SF-LLL-A Disclosure of Lobbying 

Activities Continuation Sheet

64

UCC-1 UCC Financing Statement Text, Ex. 32, 

51,

UCC-3 UCC Financing Statement Amendment 58, 216, 235,

302, Ex. 32

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 3
Exhibit 1

Reports, Forms, Abbreviations, and Redelegations of Authority Reports (Continued)

Abbreviations Not Listed in 1-CM

The following abbreviations are not listed in 1-CM.

Approved 

Abbreviation Term Reference

APOC appraisal point of contact Ex. 51, Ex. 52

EA environmental assessment 109-112

FBP farm business plan 10, 82, 85, 86, 

153, 154, 185, 

195, 247

FGD Forage Determination 49

FICO Fair Issac Corporation 82

FONSI finding of no significant impact 11

FPAC Farm Production and Conservation 110, 247

FSA-FS FSA Financial Services 262

FSFLP Farm Storage Facility Loan Program Ex. 101

GWR Gross Weight Rating 42

LRA loan recommendation approval authority 86

MPCI Multi-Peril Crop Insurance 96

MVA Motor Vehicle Administration 43

OLP online payment 242

OSHA Occupational Safety and Health Administration 36-39

REAP Rural Energy for America Program, USDA RD 62

SEC State Environmental Coordinator 11, 110, 111

SFLO Senior Farm Loan Officer 10, 153

SHPO State Historic Preservation Officer 11

SORS State Office Reporting System 210

TAV tax assessed value 122

THC tetrahydrocannabinol 33

VIN vehicle identification number 43

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4
Exhibit 1 

Reports, Forms, Abbreviations, and Redelegations of Authority Reports (Continued)

 Redelegations of Authority 

This table lists the redelegations of authority in this handbook. 

Redelegation Reference

COC delegates to CED authority to approve all FSFL forms, except CCC-185D. 10 

CED delegates to Federal and non-Federal County Office employees authority to 

approve FSFL forms, except CCC-185D and CCC-186. 

10 

STC delegates to FLM/SFLO authority to approve all FSFL forms, except 

CCC-185D. 

10 

FLM delegates to Federal and non-Federal County Office employees authority to 

approve all FSFL forms, except CCC-185D and CCC-186. 

10 

STC may delegate to a DAFO-appointed acting SED any authorities that may be 

delegated to SED. 

10 

STC may delegate to CED or FSA employee with loan approval authority to 

approve FSFL loans with aggregate balance of $25,000 or less. 

10 

STC can delegate approval authority for FSFL’s greater than $250,000.01 to SED 

or DAFO-appointed acting SED only. 

11, 14 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5 
Exhibit 1 

Reports, Forms, Abbreviations, and Redelegations of Authority Reports (Continued)

 Redelegations of Authority (Continued) 

Redelegation Reference

STC’s authority to COC only the following for storage need waivers for all 

commodities, except eligible perishable commodities: 

 the acceptance of actual yield and production records to determine a 3-year 

average 

 on a case-by-case basis, a waiver of late-filed fees when accepting late-filed 

FSA-578’s. 

53 

STC’s may delegate authority to COC only the authority for multi-peril crop 

insurance, NAP, dairy insurance program coverage waivers for hay producers, on a 

case-by-case basis, multi-peril crop insurance, NAP, or dairy insurance coverage, 

if both of the following apply: 

 aggregate outstanding FSFL balance is $100,000 or less 

157 

 program cost for producer will range between $500 and $750. 

STC’s may delegate authority to COC only the authority for multi-peril crop 

insurance, NAP, or dairy insurance program coverage waivers for producers 

of eligible perishable commodities, on a case-by-case basis, multi-peril crop 

insurance, NAP, or dairy insurance coverage, if both of the following apply: 

 aggregate outstanding FSFL balance is $100,000 or less 

 producer produces a minimum of 3 eligible perishable commodities. 

157 

STC’s may delegate authority to COC only the authority for all-peril crop 

insurance waivers, on a case-by-case basis, for the term of FSFL, if aggregate 

outstanding FSFL balance is $100,000 or less, and either of the following apply: 

 it is determined the storage structure cannot be insured with all-peril structural 

insurance 

 storage structure is a concrete bunker silo and there is no chance of loss from 

fire, theft, or other risks. 

157 

STC’s may delegate authority to SED’s the authority to approve an exception to 

current CCC-191 policy, on a case-by-case basis, under specified conditions. 

173 

STC’s may delegate authority to SED’s the authority to amend FSFL conditions 

and no longer require CCC-297. 

197 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 6 
Exhibit 2

Definitions of Terms Used in This Handbook 

Aggregate Outstanding FSFL Balance

Aggregate outstanding FSFL balance means the sum of the outstanding balances of all 

FSFL’s disbursed to each borrower signing CCC-186.

Assumption

Assumption means the act or agreement by which a new buyer takes over or assumes the 

mortgage debt of another borrower.

CCC Charter Act Commodities

CCC Charter Act commodities mean commodities originally authorized for FSFL under the 

CCC Charter Act and include the following:

• barley

• corn

• grain sorghum

• oats

• wheat

• crambe

• sesame seed

• rice

• soybeans

• sunflower seed

• canola

• rapeseed

• safflower

• flaxseed

• mustard seed

• dry peas

• lentils

• small chickpeas, harvested as whole grain and including peanuts.

Note: Corn, grain sorghum, oats, wheat, or barley shall be included whether harvested as whole 

grain or other than whole grain. 

Cold Storage Facility or Referred to as Eligible Perishable Commodities

Cold storage facility means a facility, or rooms within a facility, that are specifically designed 

and constructed for the cold temperature storage of eligible perishable commodities. The 

temperature and humidity in these facilities must be able to be regulated to specified 

conditions required for the commodity requiring storage.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Collateral

Collateral means the new or used, permanently affixed or portable storage structure, drying 

equipment, handling equipment or storage and handling trucks securing FSFL.

Commercial Purpose

*--Commercial purpose means any activity using equipment, storage and handling truck or structure 

for hire, for persons other than the FSFL applicant, except for family members and tenants or 

landlords sharing the crop requiring storage. Any facility that is in working proximity to any 

commercial storage operation will be considered to be part of a commercial storage operation.--*

Construction of FSFL

Construction of FSFL means:

• erecting or building the sides and/or roof of a bin or silo

• framing the flat storage structure or building

• installing any permanently affixed equipment component or part for:

• handling

• drying

• maintenance.

●*--site preparation including removal of vegetation and/or foundation work.--* 

Crop of Economic Significance

Crop of economic significance means any insurable FSFL commodity that contributes 10 percent 

or more of the total expected value of all crops grown by the FSFL applicant, except if the 

expected liability under the catastrophic level of crop insurance for a crop is equal to or less than

the administrative fee for the crop, that crop shall not be economically significant.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Execution Date

Execution date means the date the party signs the contract with the proper formalities; for 

example, witnesses, if required.

Existing Storage

Existing storage means FSFL commodity storage, owned by the applicant that has not 

deteriorated to the point where it is no longer functional for storage purposes. The existing 

storage shall be what is owned by the borrower in the county where the storage facility is located 

unless the State Committee determines that existing storage shall be considered for farms located 

statewide. This must be a statewide determination and not on a case by case basis.

Facility

Facility means any on-farm storage and handling facility or structure, storage and handling 

equipment, or storage and handling truck, for which an applicant may receive FSFL financing to 

acquire or upgrade. Such facilities can be new or used, fixed or portable.

Eligible Facility Loan Commodities

*--Eligible facility loan commodity means corn, grain sorghum, oats, quinoa, wheat, barley, rice,--*

raw or refined sugar, soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard 

seed, crambe, sesame seed, alfalfa, grass and clover seed, millet and other grains and oilseeds as

*--determined and announced by CCC, dry peas, lentils, or chickpeas (large and small) harvested--*

as whole grain, peanuts, hay, renewable biomass, fruits and vegetables (including nuts), 

aquaculture, floriculture, hops, milk, rye, triticale, maple sap, honey, meat, poultry, eggs, cheese, 

butter, yogurt, and other storable commodities as determined by the Secretary. Corn, grain 

sorghum, wheat, and barley are included whether harvested as whole grain or other than whole 

grains.

Family Member

A family Member is defined, according to 7 CFR Part 718 and Part 1410, as “an individual to 

whom a person is related as spouse, lineal ancestor, lineal descendant, or sibling, including a:

(1) Great grandparent

(2) Grandparent

(3) Parent

(4) Child, including a legally adopted child

(5) Grandchild

(6) Great Grandchild

*--(7) Sibling of the family member in the farming operation--*

(8) Spouse of a person listed in items 1 through 7.”

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 3
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

FSFL Microloan

FSFL microloan means a loan for which the applicant’s aggregate outstanding FSFL balance will 

be equal to or less than $50,000 at the time of loan application and disbursement. The terms for 

a FSFL microloan are 3, 5, or 7 years.

Financing Statement

Financing statement means a document that gives legal notice of a lien on chattel property when 

properly filed or recorded.

Flood Plains

Flood plains mean lowland and relatively flat areas adjoining inland and coastal waters, 

including flood-prone areas of offshore islands. At a minimum, flood plains consist of those 

areas subject to a 1 percent or greater chance of flooding in any given year. The term flood 

plain will be taken to mean the base flood plain, unless the action involves a critical action, in 

which case the critical action flood plain is the minimum flood plain of concern.

• Base flood plain (or 100-year flood plain) is the area subject to inundation from a flood of

a magnitude that occurs once every 100 years on the average, the flood having a 1 percent 

chance of being equaled or exceeded in any given year.

• Critical action flood plain (or 500-year flood plain) is the area subject to inundation from

a flood of a magnitude that occurs once every 500 years on the average, the flood having

a 0.2 percent chance of being equaled or exceeded in any given year.

●*--7 CFR 799.2 (a)(2) states that “Consistent with Departmental Regulations and related 

Executive Orders, it is FSA policy not to approve or fund proposed actions that as a 

result of their identifiable impacts, direct, indirect, or cumulative, would lead to or 

accommodate either the conversion of these uses or encroachment upon them.”--*

Grain Legumes for Hay

Grain legumes for hay mean hay where the entire plant, including the seeds, is harvested at 

maturity and used for animal feed.

Hay

Hay means a grass or legume that has been cut and stored. This may include crop residues if 

baled and used as feed, such as wheat straw.

Lien

Lien means a legally enforceable hold or claim on the property of another and obtained as 

security for the payment of indebtedness or an encumbrance on property to enforce payment 

of an obligation.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 4
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Mediation

[7CFR 780.2] Mediation means a technique for resolution of disputes in which a mediator 

assists disputing parties in voluntarily reaching mutually agreeable settlement of issues 

within the laws, regulations, and the agency’s generally applicable program policies and 

procedures, but in which the mediator has no authoritative decision making power.

Mediation is a dispute resolution process in which a neutral person, who has received special 

training as a mediator, helps 2 or more parties:

• look at the issues

• attempt to identify and consider additional available options for resolution of a dispute

• determine whether they can agree on a solution to the dispute that complies with statutory, 

regulatory, and Agency procedural requirement.

Mitigation Measures

Mitigation measures mean measures included in a project or application for the purpose 

of avoiding, minimizing, reducing, or rectifying identified, adverse environmental 

impacts.

Examples of these measures include the following:

• the deletion, relocation, redesign, or other modification of the project’s elements

• the dedication to open space of environmentally sensitive areas of the project site,

which would otherwise be adversely affected by the action or its indirect impacts

• soil erosion and sedimentation plans to control runoff during land-disturbing activities

• the establishment of vegetative buffer zones between project sites and adjacent land uses

• protective measures recommended by environmental and conservation agencies

having jurisdiction or special expertise about the project’s impacts

●*--storm water management plans and permits to control potential downstream flooding--*

effects that would result from a project

●*--zoning approvals--* 

• reusing existing facilities as opposed to new construction.

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 5
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Mortgage

Mortgage means a legal instrument giving the lender a security interest or lien on real 

property. The term “mortgage” also includes the terms “deed of trust” and “security 

agreement”.

Nonmovable (Permanently Affixed) or Nonsaleable Collateral

Nonmovable or nonsaleable collateral means either of the following:

• collateral COC determines cannot be sold and moved to a new location because of the type of 

construction

• collateral that has deteriorated to the point that it has no sale recovery value.

Off-Farm Labor

Off-farm labor means any laborer that does not work for the applicant on a regular basis, 

 *--and who is not hired as a seasonal worker. If the applicant owns/operates a business as a 

separate non-farm business (example construction company, electrical company, concrete 

company, etc.), the labor provided by the non-farm business employees are considered 

off-farm labor for FSFL purposes.--*

Old Growth Timber

Old growth timber means forest materials that would otherwise be used for either of 

the following:

• a higher-value product, such as timber, lumber, or wood pulp

• any other finished wood products, such as mulch or paper.

Note: See Healthy Forest Restoration Act of 2003, Subsection 102e, paragraphs 2 through 4.

On-Farm Labor

On-farm labor means the applicant, hired hand or family member.

Perishable Commodities

Perishable commodities means commodities that are unpreserved, unprocessed and 

untreated which may deteriorate quickly or spoil under normal handling and shipping 

conditions. Perishable commodities usually require some sort of refrigerated storage. 

Perishable commodities include, but are not limited to: dairy products, eggs, floriculture, 

meat and poultry, seafood, fruits and vegetables.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 6
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Person

Person means any individual, group of individuals, partnership, corporation, estate, trust, 

association, cooperative, tribal venture, or other business enterprise, or other legal entity who 

is, or whose members are, a citizen or citizens of the United States, or a legal resident alien.

Portable Equipment and Storage Structures

Portable equipment and storage structures means non-affixed equipment and storage containers 

that are manufactured to be mounted, hitched, or transported with a farm vehicle, truck, or 

trailer and its primary function is to store or handle eligible facility loan commodities at a 

different farm, market, or storage locations. Examples of portable equipment include but are 

not limited to, bulk tanks, conveyors, augers, vacuums, pilers, scales, batch dryers, and storage 

containers.

Relative

Relative, as defined in 3-PM, Exhibit 2, means an individual who is related to the employee, as 

father, mother, son, daughter, brother, sister, uncle, aunt, great-uncle, great-aunt, first cousin, 

nephew, niece, husband, wife, grandfather, grandmother, grandson, granddaughter, father-inlaw, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, 

stepmother, stepson, stepdaughter, stepbrother, stepsister, half-brother, half-sister, or who is the 

grandfather or grandmother of the spouse of the employee, or who is the fiancé or fiancée of the 

employee.

Renewable Biomass Commodity

Renewable biomass commodity means any organic matter that is available on a renewable 

or recurring basis used for producing energy in the form of heat, electricity, and liquid solid 

or gaseous fuels.

Resale Collateral Value

Resale collateral value means collateral that can be sold and moved to a new location for which 

compensation equal to the outstanding FSFL value can be expected.

Satisfactory Credit History

Satisfactory credit history means a history of repaying debts as they came due unless the 

failure to repay or tardiness in payment was because of circumstances beyond the applicant’s 

control as determined by CCC upon proof submitted by the applicant.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7
Exhibit 2

Definitions of Terms Used in This Handbook (Continued)

Stand-Alone Structures

Stand-alone structures mean structures that are not dependent on anything else and can function 

independently.

An example of a structure that would not be considered a stand-alone structure is when 2 hay 

sheds are built, and the sheds share common components, such as, but not limited to, access 

door, wall, or roof. One maximum FSFL can be approved for the project; however, a lien must 

be filed for both sheds.

An example of a structure that would be eligible for an FSFL is when a producer may have 

multiple grain bins at one location. Each of those grain bins would be eligible for an FSFL loan 

even if they may be connected by a catwalk or distribution system. They would not have a 

common component such as wall or roof.

A producer is requesting an FSFL to add a milk house to an existing building. The milk house 

structure may be attached to an existing building; however, there will be one FSFL issued for the 

project. In addition, a lien must be filed for the FSFL structure and the existing building.

Storage and Handling Truck

Storage and handling truck means a CCC-approved commodity storage truck or van designed 

to carry eligible commodities and may be equipped with a variety of mechanical refrigeration 

systems and will be used to store, handle, and move eligible commodities from the producer’s 

farm location to market or storage. * * *

Term of Loan

Term of loan means the duration, in years, of a loan payable in a fixed number of 

equal installments.

Uniform Commercial Code (UCC)

UCC means the system of laws adopted in all States about commercial transactions, such 

as sales, negotiable instruments, and secured transactions.

Used or Pre-Owned Structure

Used or pre-owned structure means a structure that was previously owned by someone other 

than the manufacturer or dealer, and the buyer cannot obtain the original manufacturer’s 

warranty.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 8
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of )

A Example of CCC-193

The following is an example of CCC-193.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, Farm 

Storage Facility Loan Deed of Trust for (State of ____________) (Continued)

A Example of CCC-193 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

A Example of CCC-193 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D

The following is an example of CCC-193-D.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 6
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 7
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 8
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 9
Exhibit 6

(Par. 6, 143)

CCC-193, Real Estate Mortgage for Farm Storage Facility Loan Program and CCC-193-D, 

Farm Storage Facility Loan Deed of Trust for (State of ) (Continued)

B Example of CCC-193-D (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 10
Exhibit 7

(Par. 13, 154)

Approval Notification Letter

The following letter is available on the FFAS Employee Forms/Publication Online Website in 

fillable format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL Exhibit 7”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 8

(Par. 13, 26, 155)

Adverse Determination Notification Letter

The following is available on the FFAS Employee Forms/Publication Online Website in fillable

*--format at https://fsaintranet.sc.egov.usda.gov/dam/ffasforms/currentforms.asp. In “Form

Number”, ENTER “1-FSFL Exhibit 8”.

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1
.
Exhibit 9

(Par. 13)

*--Adverse Determination Notification Letter Based on Environmental Review

The following is available on the FFAS Employee Forms/Publication Online Website in fillable 

format at https://fsaintranet.sc.egov.usda.gov/dam/ffasforms/currentforms.asp. In “Form 

Number”, ENTER “1-FSFL Exhibit 9”. 

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1
Exhibit 9

(Par. 13)

*--Adverse Determination Notification Letter Based on Environmental Review (Continued)

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2
Exhibit 10

(Par. 43, 44, 110)

Example of FSA-850 for Storage and Handling Truck FSFL Request

The following is an example of FSA-850.

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1
Exhibit 10

(Par. 43, 44, 110)

Example of FSA-850 for Storage and Handling Truck FSFL Request (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2
Exhibit 10

(Par. 43, 44, 110)

Example of FSA-850 for Storage and Handling Truck FSFL Request (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 3
Exhibit 10

(Par. 43, 44, 110)

Example of FSA-850 for Storage and Handling Truck FSFL Request (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 4
Exhibit 10

(Par. 43, 44, 110)

Example of FSA-850 for Storage and Handling Truck FSFL Request (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 5
.
Exhibit 20

(Par. 49)

Worksheet for Determining Hay and Biomass Storage Capacity in a Structure

An applicant’s needed storage can be determined with NIFA and land-grant university assistance or 

with the following worksheet that is available electronically in a fillable format on the FFAS 

Employee Forms/Publication Online Website in fillable format at

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current Forms Using Our 

Form Number Search”. For “Form Number”, ENTER “1-FSFL Exhibit 20”

The following is a completed example worksheet for determining hay storage capacity in a structure. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1

Exhibit 21 

(Par. 50) 

Worksheet for Determining Capacity of a Cold Storage Structure 

The following worksheet can be used to compute the storage need requirement and capacity of a 

*--cold storage structure. This worksheet is available on the FFAS Employee Forms/Publication--*

Online Website in fillable format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. 

CLICK “Find Current Forms Using Our Form Number Search”. For “Form Number”, ENTER 

“1-FSFL Exhibit 21” 

The following is a completed example worksheet for determining capacity of a cold 

storage structure, as follows. 

Example: Producer has 1⁄2 acre of apples that yield about 330 bu. of applies per year. An 

application is submitted for an 8 ft. x 8 ft. x 12 ft. cold storage facility. A tray pack carton, 

storing a bu. of apples, takes 1.67 cu. ft. of storage space. 

How much of the producer’s production can be stored at 1 time? 

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 1 

Exhibit 22

(Par. 51)

Worksheet for Determining Capacity of a Honey Storage Structure

Determine the capacity of proposed structure using the following worksheet or other verifiable 

documentation. All documentation used must be verifiable and kept in the FSFL folder. This 

worksheet is available on the FFAS Employee Forms/Publication Online Website in fillable 

format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL Exhibit 22”

The following is a completed example worksheet for determining the estimated capacity of a 

honey storage structure, as follows.

Example: A honey producer submits an application for a 12 ft. x 16 ft. x 15 ft. honey storage 

facility. The honey producer stores the honey in 55 gallon drums.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 23

(Par. 52)

Example Worksheet for Determining Capacity of Milk Bulk Tank

These worksheets are available on the FFAS Employee Forms/Publications Online web site at 

https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current Forms Using Our 

Form Number Search”. For “Form Number”, ENTER “1-FSFL Exhibit 23”.

Once a Day Milk Pick-Up

A B = A x 3 C = B/8.6 County Office Use

Quantity on 

Milk Pick-up 

Slip

1 Day Pick-up

Times 3

Gallons Existing Capacity 

of Milk Storage

Requested Tank 

Size or Next Size 

Available (if 

requested)

Approved 

Tank Size for 

Milk Storage

Every Other Day Milk Pick-up

A B = A x 1.5 C = B/8.6 County Office Use

Quantity on 

Milk Pick-up 

Slip

Every Other 

Day Pick-up 

Times 1.5

Gallons Existing Capacity 

of Milk Storage

Requested Tank 

Size or Next Size 

Available (if 

requested)

Approved 

Tank Size for 

Milk Storage

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 24

(Par. 60)

FSFL Quick Guide

The following FSFL table provides loan and facility types, down payment requirement, maximum 

loan amount, and applicable loan terms, based on new or used equipment.

Loan Type Facility 

Type Condition Down Payment

Max 

Loan 

Amount

Production 

History 

Requirement

Terms (years)

3 5 7 10 12

Regular

Structure 

and 

Equipment

New 15% $500k Based on 

Commodity

√ √ √ √ √

Used 15% $500k √ √

Truck New 15% $100k √ √ √

Used 15% $100k √ √

Microloan

Structure, 

Equipment 

and Truck

New 5% $50k

Selfcertification √ √ √

Used 5% $50k

Selfcertification √ √

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 28

(Par. 68)

CCC-185, Loan Application for Farm Storage Facility Loan Program

A Instructions for Completing CCC-185

CCC-185 shall be completed according to the following instructions.

Item Instructions

1A Enter State code.

1B Enter county code.

1C Leave blank until a number is assigned by DLS.

Enter DLS-assigned FSFL number that is formatted with FY and FSFL number; for 

example “2017/00002”.

2A Enter the name and complete address including ZIP Code for the loan applicant who 

will be applying for FSFL.

2B Enter the last 4 digits of the loan applicant’s TIN. If applying as an entity, use the 

entity’s ID number.

2C Enter the loan applicant’s telephone number including area code.

3A Enter the requested loan amount.

3B Check “YES or NO” to indicate if the applicant is applying for a “Microloan (ML)”

For ML purposes, the applicant must understand the total aggregate FSFL outstanding 

balance at the time of disbursement cannot exceed $50,000.00.

3C Check the box for the requested loan term of the loan. The requested loan term must be 

consistent with the eligible terms for the requested loan amount in Item 3A according to 

the following table.

Note: Loan terms 3 or 5 years must be selected for used storage, equipment and/or 

and handling trucks, regardless of loan amount.

3D Check the applicable box for disbursement type requested.

4 Check the applicable commodity(s) type for the FSFL request.

5 Check facility and equipment needed for the storage based on the commodity(s) 

selected.

6A Provide a detailed description of the facility, equipment type, and/or storage and 

handling truck. (Indicate if facility, equipment and/or storage and handling truck is 

used and model year of the truck).

*--6B Check "YES or NO" to indicate if the FSFL project will include clean energy or energy 

efficient equipment.--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1

Terms

$100,000.00 or

less

$100,000.01 to

$250,000.00

$250,000.01 to

$500,000

3 X X X

5 X X X

7 X X X

10 X X

12 X
Exhibit 28

(Par. 68)

Completing CCC-185, Loan Application for Farm Storage Facility Loan Program (Continued) 

A Instructions for Completing CCC-185 (Continued)

Item Instructions

7A Enter legal description of where the permanently affixed storage facility and 

equipment will be erected and/or installed, or where the portable storage facility, 

equipment and/or storage and handling truck will be regularly stored.

7B Enter legal owner of the real estate of where the permanently affixed storage 

facility and equipment will be erected and/or installed, or where the portable 

storage facility, equipment and/or storage and handling truck will be regularly 

stored.

8 Enter the complete name or names of the owner of the real estate, if applicable, only if 

it is different than the loan applicant.

9A List the names of all lienholders on the real estate where the storage will be located, if

applicable.

9B If there are no lienholders enter “None” and initial and date.

10 Applicant must thoroughly read the applicant’s certification and initial and date if 

information is provided in the other space.

11 Applicant certifies for DCIA compliance by checking (√) “Yes” or “No”. If 

“YES”, provide details in Item 13, “Additional Remarks.”

12 Will the storage facility, equipment and/or storage and handling truck be used for 

commercial purposes? Check the “Yes” or “No” boxes.

13 Are you or any co-applicant a family member of an FSA employee? Check the 

“Yes” or “No” boxes.

14 Enter additional remarks that will assist the CCC official with determining loan 

eligibility.

15 The applicant or co-applicant shall sign.

16 Enter percentage of shares owned for each applicant or co-applicant.

17 Enter applicant’s or co-applicant’s title.

18 Enter date applicant or co-applicant signed.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 28

(Par. 68)

CCC-185, Loan Application for Farm Storage Facility Loan Program (Continued)

B Example of CCC-185

The following is an example of a manual CCC-185, page 1. 

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3
Exhibit 28

(Par. 68)

CCC-185, Loan Application for Farm Storage Facility Loan Program (Continued)

B Example of CCC-185 (Continued)

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 4
Exhibit 29

(Par. 74)

CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist

A Instructions for Completing CCC-195

CCC-195 shall be completed according to the following instructions.

Item Instructions

1 Enter applicant’s name. If a joint FSFL, a separate CCC-195 is required for each

application.

2 Enter date CCC-185 is signed and received in County Office.

3 Enter DLS-assigned FSFL number Example: 2017/00001

4 Enter State where FSFL collateral will be located.

5 Enter county where FSFL will be processed.

6A

through 

15J

For each item listed, check () either “Yes” or “No”. The employee completing the 

action shall initial and date. If item is not applicable to this FSFL, check () “NA”. 

The employee determining the action is not applicable shall initial and date.

16A

through 

16C

STC designee, CED, or FLM shall indicate whether they concur with how items 6 

through 15 are completed. STC designee, CED, or FLM shall review CCC-195’s for 

all FSFL’s.

STC designee, CED, or FLM who completed item 16A shall sign item 16B. 

STC designee, CED, or FLM who signed item 16B shall date item 16C.

17 Remarks by STC designee, CED, or FLM about FSFL.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 29

(Par. 74)

CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist

B Example of CCC-195

The following is an example of CCC-195.

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 2
Exhibit 29

(Par. 74)

CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist (Continued)

B Example of CCC-195 (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 3
Exhibit 29

(Par. 74)

CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist

B Example of CCC-195 (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 4
Exhibit 29

(Par. 74)

CCC-195, Farm Storage Facility Loan (FSFL) Processing Checklist (Continued)

B Example of CCC-195 (Continued)

*--

--*

8-20-19 1-FSFL (Rev. 3) Amend. 3 Page 5
.
Exhibit 30

(Par. 74)

CCC-195A, Farm Storage Facility Loan (FSFL) Real Estate Security Checklist 

A Instructions for Completing CCC-195A

Complete CCC-195A according to the following table.

Item Instructions

1 Enter applicant’s name. If a joint FSFL, a separate CCC-195A is required for each 

application. If a partial and final disbursement is made, a separate CCC-195A is 

required for each disbursement.

2 Enter date CCC-185 is signed.

3 Enter DLS-assigned FSFL number. Example: 2017/00001

4 Enter State where FSFL collateral will be located.

5 Enter county where FSFL will be processed.

6 Enter loan approval date.

7 Enter date loan approval expires.

8A

through 

*--10P--*

For each item listed, check () either “Yes” or “No”. The employee completing the 

action shall initial and date. If item is not applicable to this FSFL, check () “NA”. 

The employee determining the action is not applicable shall initial and date.

11A

through 

11C

STC designee, CED, or FLM shall indicate whether they concur with how items 8 

through 10 are completed. STC designee, CED, or FLM shall review CCC-195A’s for 

all FSFL’s.

STC designee or CED who completed item 11A shall sign item 11B. 

STC designee or CED who signed item 11B shall date item 11C.

12 Remarks by STC designee, CED, or FLM about FSFL.

13A

through

13D

If this FSFL is 1 of the first 3 FSFL’s received in FY, according to

subparagraph 185 G, STC designee shall review FSFL before disbursement. To 

document the review, STC designee shall sign and date the notation.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1
Exhibit 30

(Par. 74)

CCC-195A, Farm Storage Facility Loan (FSFL) Real Estate Security Checklist (Continued)

B Example of CCC-195A

The following is an example of CCC-195A. 

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2
Exhibit 30

(Par. 74)

CCC-195A, Farm Storage Facility Loan (FSFL) Real Estate Security Checklist (Continued) 

B Example of CCC-195A (Continued)

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3
.
Exhibit 31

(Par. 74)

CCC-195B, Farm Storage Facility Loan (FSFL) No Real Estate Security Checklist 

A Instructions for Completing CCC-195B

Complete CCC-195B according to the following table.

Item Instructions

1 Enter applicant’s name. If a joint FSFL, a separate CCC-195B is required for each

application. If a partial and final disbursement is made, a separate CCC-195B is 

required for each disbursement.

2 Enter date CCC-185 is signed.

3 Enter DLS-assigned FSFL number that is FY and FSFL number.

4 Enter State where facility equipment will be located.

5 Enter county where FSFL will be processed.

6 Enter loan approval date.

7 Enter date loan approval expires.

8A

through 

*--10F--*

For each item listed, check () either “Yes” or “No”. The employee completing the 

action shall initial and date. If item is not applicable to this FSFL, check () “NA”. 

The employee determining the action is not applicable shall initial and date.

11A

through 

11C

STC designee, CED, or FLM shall indicate whether they concur with how items 8 

through 10 are completed. STC designee, CED, or FLM shall review CCC-195A’s 

for all FSFL’s.

STC designee, CED, or FLM who completed item 11A shall sign item 11B. 

STC designee, CED, or FLM who signed item 11B shall date item 11C.

12 Remarks by STC designee or CED about FSFL.

13A

through

13D

If this FSFL is 1 of the first 3 FSFL’s received in FY, according to

subparagraph 185 G, STC designee shall review FSFL before disbursement. To 

document the review, STC designee shall sign and date the notation.

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1
Exhibit 31

(Par. 74)

CCC-195B, Farm Storage Facility Loan (FSFL) No Real Estate Security Checklist (Continued) 

B Example of CCC-195B

The following is an example of CCC-195B.

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 2
Exhibit 31

(Par. 74)

CCC-195B, Farm Storage Facility Loan (FSFL) No Real Estate Security Checklist (Continued)

B Example of CCC-195B (Continued)

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 3
.
Exhibit 32

(Par. 75)

Suggested FSFL Filing Guide for Eight Position Files

The following is a suggested FSFL filing guide that may be used for 8 position files:

• Position 1:

• CCC-195, CCC-195A, or CCC-195B

• UCC-1

• UCC-3

• CCC-190

• FSA-2360

• FSA-2015.

• Position 2:

• FSFL Amortization Report

• CCC-186

• CCC-298

• FSFL Repayment Receipt.

• Position 3:

• running case records

• CCC-185

• financial information

• FBP Credit Action

• Credit Bureau Report

• FSA-2004.

• Position 4:

• Correspondence

• Loan Approval or Loan Denial Letters

• Payment Reminder Letters.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 32

(Par. 75)

Suggested FSFL Filing Guide for Eight Position Files (Continued)

• Position 5:

• all legal information including legal description

• all attorney information and forms

• CCC-193

• CCC-194

• copy of CCC-297 (original filed where applicable).

• Position 6:

• bills/invoices/statements

• estimates

• building plans and permits

• CCC-295A

• CCC-295C

• Maps of the Site with Proposed Storage Structure Location Noted

• CCC-191(s)

• Disbursement Calculator.

• Position 7:

• proof of insurance – auto, crop, structural, and flood.

• Position 8:

• AD-1026

• FSA-850

• FSA-851

• Class II assessments

• State Historical Preservation Officer determination

• Tribal Historic Preservation Office documentation

• FWS determination

• appraisals.

Note: This suggested filing guide can be adjusted if 6 position folders are used.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 51 

(Par. 121, 122) 

Authorized Methods for Determining the Value of FSFL Real Estate Security 

A Acceptable Methods for Determining the Value of FSFL Real Estate Security 

The following are acceptable methods for determining the value of FSFL real estate security. 

IF the acceptable 

method is the... THEN the real estate

appraisal value 

(subparagraph 122 A)

appraisal must:

 be requested and paid for by the applicant

 be requested by the State Office according to Exhibit 52

*--be from an appraiser authorized by FLP and APOC or contracting 

officer--* 

 include the value of the real estate and the structure

 be valued at least 100 percent of the FSFL amount to adequately 

county tax assessed 

value

(subparagraph 122 H)

security value:

 will be determined from current county tax bill for specified 

 parcel or parcels, as applicable

 may include a factor established from a documented percent used by 

 the County Assessor to determine the current value of the real 

 estate, if the market value is not included on the tax bill

Note: See table in subparagraph 122 H.

 if authorized by STC, COC may include up to 50 percent of the 

FSFL amount for new FSFL eligible components, if the facility is 

located on the real estate being mortgaged 

Note: At all times, if the FSFL is for used eligible components up to 

20 percent of the FSFL amount may be used to determine 

value.

 and structure, if applicable, must be valued at least 100 percent of 

 the FSFL amount to adequately protect CCC’s security interest.

additional authorized 

methods 

(subparagraph 122 I)

If authorized by STC, COC may determine security value using an 

additional authorized method and may include up to 50 percent of the 

FSFL amount for new FSFL components, if the facility and/or equipment 

is located on the real estate being mortgaged. Up to 20 percent of the 

FSFL amount for used FSFL components. 

The real estate and structure, if applicable, must be valued at least 

125 percent of the FSFL amount to adequately protect CCC’s security 

interest.

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 1 
Exhibit 51 

(Par. 121, 122) 

Authorized Methods for Determining the Value of FSFL Real Estate Security (Continued) 

B Determining the Value of FSFL Real Estate Security When Separate From FSFL Facility 

Determine the value of FSFL real estate security when separate from FSFL facility according to 

the following. 

Step Action

1 Real estate security separate from the structure is only allowed when an adequate lien 

on the underlying real estate is not feasible and all of the following apply: 

 applicant owns separate acreage that is not subject to any other liens superior 

 to CCC’s 

 acreage of entire parcel is adequate in value as determined by 1 of the methods 

 in subparagraph A to adequately secure and insure full payment. 

2 Allow the value of the structure to equal 20 percent of the FSFL amount, if all of 

the following apply: 

 CCC-297 obtained from owners of real estate where FSFL is located 

 UCC-1 filed on FSFL structure giving CCC first lien position 

 FSFL structure has resale collateral value according to paragraph 122. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2 
Exhibit 52

(Par. 122, Ex. 51)

Instructions for Requesting and Paying for FSFL Real Estate Appraisals

All FSFL appraisals will be requested by the State Office because of:

• the appraisal being performed for CCC although the entire cost is the applicant’s expense

• a respective State Office’s procedure and policies required for processing of the appraisal

request submitted by County Offices.

Notes: FSFL applicants will not be permitted to contact an appraiser to request an appraisal.

FSFL applicants may authorize the County Office to add the cost of the appraisal to the 

eligible net costs and be used when determining the applicant’s FSFL downpayment.

FSFL applicant may provide payment for the appraisal to the County Office. * * *

As APOC or contracting officer routinely requests appraisals, that person should be 

consulted for appraisal ordering procedure.

Upon completion of the appraisal, the following shall be completed.

Step Action

1 Appraiser (requested by APOC or contracting officer) must submit the completed 

appraisal and invoice for the appraisal to the State Office.

2 FSA employee with administrative review authority must review the appraisal to ensure 

that it is acceptable. Employee may use FSA-2165.

3 State Office must forward the invoice and appraisal to the applicable County Office.

4 County Office must review 2-FSFL, paragraph 52 for paying the appraisal fee using DLS. 

* * * * * *

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1
.
Exhibit 53

(Par. 69, 141)

CCC-10, Representations for Commodity Credit Corporation or Farm Service Agency Loans and 

Authorization to File a Financing Statement and Related Documents 

A CCC-10 Availability

CCC-10 is available for download from the following:

• by FSA employees, from the FSA Intranet at

https://intranet.fsa.usda.gov/dam/ffasforms/forms.html

• by producers, with instructions, from the Internet at

https//forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home.

B Instructions for Preparing CCC-10’s

County Offices shall prepare CCC-10’s according to the following table.

Item Instructions

Part A Ensure that the producer understands the statements.

1 Check () the box for:

• “Individual”, if the producer conducts a farming operation as an individual

• “Organization or Entity”, if the producer conducts a farming operation as an 

organization or entity.

2 If the box in item 1 is checked for:

• “Individual”, enter the applicable Social Security number or TIN

• “Organization or Entity”, enter the applicable TIN.

3 If the box in item 1 is checked for:

• “Individual”, enter the naming standard according to State law, or if the 2010 

amendments to UCC Article 9 have not been adopted, the naming standard

according to regional OGC

• “Organization or Entity”, enter the full legal name of the organization or entity

as filed with the State and provided on the organization charter or legal

documents establishing the entity.

 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 53

(Par. 69, 141)

CCC-10, Representations for Commodity Credit Corporation or Farm Service Agency Loans and 

Authorization to File a Financing Statement and Related Documents (Continued)

B Instructions for Preparing CCC-10’s (Continued)

Item Instructions

4 If the box in item 1 is checked for “Individual”, enter the naming standard according to 

State law, or if the 2010 amendments to UCC Article 9 have not been adopted, the 

naming standard according to the regional OGC, for spouse.

Note: This is the name that will be used on UCC forms for additional debtors.

5 If the box in item 1 is checked for “Individual”, enter the name of the State and county 

of the producer’s primary residence. Unless otherwise advised by OGC, this is where to 

file UCC-1’s and to perform lien searches.

6 If the box in item 1 is checked for “Organization or Entity”, enter the type of 

organization or entity. Acceptable types are corporations, general or limited 

partnerships, LLC’s, and trusts. An informal joint operation or venture is not a legal 

entity. Members of an informal joint operation or venture are treated as individuals.

7 If the organization or entity is registered:

• it must be organized under the law of a single State and must be displayed in a

State public record as being organized

• enter the State in which the organization or entity was created and is registered.

Unless otherwise advised by OGC, this is where to file UCC-1’s and to perform lien

searches.

Note: It is important to consult with your regional OGC to ensure the UCC-1 being 

filed for the organization or entity is filed according to State law.

8 If the organization or entity is not registered, enter the State where the place of 

business is located or where the organization or entity conducts its affairs.

Unless otherwise advised by OGC, this is where to file UCC-1’s and to perform lien 

searches.

9 Ensure that the producer understands the statement.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 53 

(Par. 69, 141) 

CCC-10, Representations for Commodity Credit Corporation or Farm Service Agency Loans and 

Authorization to File a Financing Statement and Related Documents (Continued) 

 B Instructions for Preparing CCC-10’s (Continued) 

Item Instructions

10A-11F If the box in item 1 is checked for: 

 “Individual”, the producer enters the signature as the first, middle, and last name 

 and, if applicable, a suffix 

 “Organization or Entity”, the producer enters the following: 

 legal name of the organization or entity 

 the word “by” 

 producer’s signature 

 producer’s title. 

Example: Hobbitt Farms Inc. by John H. Smith, President. 

Note: See paragraph 6 for signature authority documentation requirements. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3 
Exhibit 53 

(Par. 69, 141) 

CCC-10, Representations for Commodity Credit Corporation or Farm Service Agency Loans and 

Authorization to File a Financing Statement and Related Documents (Continued) 

C Example of CCC-10 

 The following is an example of a completed CCC-10. 

 *-- 

--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 4 
Exhibit 56

(Par. 144)

CCC-190, Farm Storage Facility Loan Program Lien Waiver 

A Completing CCC-190

CCC-190:

• is required when liens are found on facilities and equipment that are pledged as collateral

Note: CCC-190 shall not be used to waive liens on real estate.

• shall be completed according to the following instructions.

Item Instructions

The County Office shall complete items 1 through 6, and item 9A.

1 Enter name and address of the borrower and co-borrower.

2 Enter State code for the loanmaking County Office.

3 Enter county code for the loanmaking County Office.

4 Enter FSFL number assigned by APSS.

5 Enter location of collateral. This should be the location entered on UCC-1.

6 Enter description of collateral as entered on UCC-1. Additional description items 

may be entered to further identify the items, if needed.

The lienholder shall complete items 7, 8, 9B, 10A, and 10B.

7 Lienholder must indicate how monetary proceeds are to be disbursed by entering a 

checkmark () in either of the boxes provided.

8 Enter any necessary comments.

9A County Office shall enter the lienholder’s name and address from the lien search.

9B Lienholder shall enter their phone number.

10A & B Lienholder identified or their agent identified in item 9A shall sign and date.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 56

(Par. 144)

CCC-190, Farm Storage Facility Loan Program Lien Waiver (Continued)

B Example of CCC-190

The following is an example of CCC-190.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 57

(Par. 144)

CCC-194, Farm Storage Facility Loan Subordination Agreement 

A Completing CCC-194

CCC-194 shall be completed according to the following instructions.

Item Instructions

1 Enter borrower’s name and address.

2 Enter borrower’s telephone number, including area code.

3(a) Enter borrower’s name.

3(b) Enter county where the facility will be located.

3(c) Enter State where the facility will be located.

4 Enter complete real estate description as it is shown on the real estate 

mortgage, and indicated by checking box for first lien or second lien.

5(a) Enter number or name of the book that recorded the Real Estate Mortgage or 

security instrument.

5(b) Enter page number of the book identified in item 5(a).

6(a), (b), 

and (c)

Enter day, month, and year CCC-194 is executed.

6(d) Lienholders shall sign.

6(e) – (m) To be completed by the notary witnessing signatures in item 6(d).

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 57

(Par. 144)

CCC-194, Farm Storage Facility Loan Subordination Agreement (Continued) 

B Example of CCC-194

The following is an example of CCC-194.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 57

(Par. 144)

CCC-194, Farm Storage Facility Loan Subordination Agreement (Continued) 

B Example of CCC-194 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
.
Exhibit 58 

(Par. 154, 156) 

CCC-185D, Determination for Farm Storage Facility Loan Program 

 *--A Instructions for Completing CCC-185D 

 Complete CCC-185D according to the following instructions. 

 

Item Instructions 

1A Enter State Code. 

1B Enter County Code. 

1C Enter DLS-assigned FSFL number that is formatted with FY and FSFL number; for 

example “2018/00002. 

2A Enter the applicant’s name. 

3 Check the applicable boxes for conditions the applicant must complete before or after closing. 

4 Check the type of security required by COC/STC. 

5 Enter remarks. 

6A Enter COC/STC Determination. 

6B Enter loan amount approved by COC/STC.

7 Check number of loan installments. 

8A Enter final loan approval expiration date. 

8B Enter 1st extension date. 

8C Enter 2nd extension date. 

9 Enter date CCC mailed approval notification letter to applicant. 

10A *--Enter name of COC/STC.--* 

10B COC/STC signature required. 

10C Enter COC/STC signature date. 

11A Check the applicable box for COC/STC approval/disapproval of loan increase. 

11B Enter final approved loan amount pending funding. 

12A Enter name of COC/STC. 

12B COC/STC signature required. 

12C Enter COC/STC signature date. 

--* 

 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 1
Exhibit 58 

(Par. 154, 156) 

CCC-185D, Determination for Farm Storage Facility Loan Program (Continued) 

 B Example of CCC-185D 

The following is an example of a completed CCC-185D. 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 2 
Exhibit 64

(Par. 174) 

CCC-197, Final Farm Storage Facility Loan (FSFL) Program Cost Certification 

 A Instructions for Completing CCC-197’s 

 Complete CCC-197 according to the following table. 

Item Instructions

Part A - General Information

1-3 Enter FSFL applicant’s full name, phone number (optional), and FSFL number.

4-6 Enter name, address, and phone number of the FSA County Office.

7 Producer must select either “Partial Disbursement” or “Final Disbursement”.

Part B - FSFL Structure Bills and Invoices

8 Producer must provide the name of the vendor or contractor and approved STC 

and/or COC on-farm equipment.

9 Producer must provide the total amount of bill.

For FSA Use Only

10 STC, COC, or designee must answer “Yes” or “No” to the question, “Was 

CCC- 191 obtained, if applicable?” If “No” is answered, give the reason why not. 

Note: CCC-191 and signed and dated final invoices must be for the same amount or 

the invoice total must be greater than the total entered on CCC-191, according 

to paragraph 173.

Part C - Certification of Federal Grants or Loans

11 Producer must answer “Yes” or “No” to the question, “Are there any unresolved 

claims or demands for payments pending with a vendor, contractor, subcontractor or 

material supplier in connection with the FSFL project? If “Yes”, provide item number 

(8 A through 8 I) of the vendor or contractor in Item 18.”

12 Producer must answer “Yes” or “No” to the question, “Has an application been 

submitted, approved or paid for by any other federal governmental loans or grants 

on the same structure or other collateral used for this FSFL? If “Yes”, provide 

details of the loan and/or grant in Item 18. If “No”, skip Part D.”

Part D - Federal Grant and/or Other Loan Information

13 Producer must provide the total grant eligible costs.

14 Producer must provide the total grant or loan requested.

15 Producer must provide sources of funds, if a value is entered in items 13 and/or 14.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1 
Exhibit 64

(Par. 174)

CCC-197, Final Farm Storage Facility Loan (FSFL) Program Cost Certification (Continued)

A Instructions for Completing CCC-197’s (Continued)

Item Instructions

Part E - Producer Certification

16A Each producer must sign CCC-197 after carefully reading the information in Part E.

16B Each producer must provide title and/or relationship of the individual signing in the 

representative capacity.

16C Each producer must enter the last 4 digits of their TIN.

16D Each producer must enter date CCC-197 was signed.

Part F - STC, COC or Designee Signature (for FSA Use Only) Important: STC, COC, 

or designee shall approve CCC-197 after all required CCC-191’s are received and 

acceptable cost documents are received that support the total cost on CCC-191.

17A STC, COC, or designee shall sign.

17B Enter title of designee signing item 17A.

17C Enter date STC, COC, or designee signed item 17A.

18 Enter any remarks that may be pertinent to any information entered on CCC-197. If 

producer answers “yes” to questions 11 or 12, they must provide details in item 18. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 64

(Par. 174)

CCC-197, Final Farm Storage Facility Loan (FSFL) Program Cost Certification (Continued) 

B Example of CCC-197

The following is an example of a completed CCC-197.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
Exhibit 64

(Par. 174)

CCC-197, Final Farm Storage Facility Loan (FSFL) Program Cost Certification (Continued) 

B Example of CCC-197 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4
Exhibit 67

(Par. 195)

CCC-186, Farm Storage Facility Loan Program Promissory Note and Security Agreement

A Preparing CCC-186

The CCC-186 is generated in DLS. County Offices must ensure that CCC-186 is properly 

prepared according to 2-FSFL.

If CCC-186 is being prepared for portable drying and handling equipment or a storage and 

handling truck, the preparer must include a complete description of the FSFL and the 

location of where the FSFL collateral will be regularly stored.

If an Irrevocable Letter of Credit is provided to secure the FSFL, CCC-186 must be noted 

with the following information:

An Irrevocable Letter of Credit from secures FSFL No. in the amount of $ .XX, 

plus applicable interest for the entire term.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 67

(Par. 195)

CCC-186, Farm Storage Facility Loan Program Promissory Note and Security Agreement

(Continued)

B Example of CCC-186

The following is an example of CCC-186.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 67

(Par. 195)

CCC-186, Farm Storage Facility Loan Program Promissory Note and Security Agreement

C Example of CCC-186-1

The following is an example of CCC-186-1. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
Exhibit 67

(Par. 195)

CCC-186, Farm Storage Facility Loan Program Promissory Note and Security Agreement

C Example of CCC-186-1 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4
Exhibit 68

(Par. 58, 496)

CCC-297, Severance Agreement

A Completing CCC-297

CCC-297 shall be completed according to the following instructions.

Item Instructions

a Enter name of borrower.

b Enter name of co-borrower, if applicable.

c Enter name of town or city where borrower resides.

d Enter County where borrower resides.

e Enter State where borrower resides.

f Describe the FSFL structures/components that are affixed to the real estate.

g Enter legal description of real estate to which the FSFL structures/components 

are affixed.

h Enter numeric day of the month the agreement is executed.

i Enter month the agreement is executed.

j Enter year the agreement is executed.

k If the owner of the real estate is an entity, enter the name of the entity.

l If an entity name is entered in item k, the authorized representative must sign.

m Enter title of the authorized representative.

n and o If real estate is owned by individuals, owners must sign.

p - w To be completed by the notary witnessing signatures in items k through o.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 68

(Par. 58, 196)

CCC-297, Severance Agreement (Continued)

B Example of CCC-297

The following is an example of CCC-297.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2
Exhibit 68

(Par. 58, 496)

CCC-297, Severance Agreement (Continued)

B Example of CCC-297 (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
.
Exhibit 69

(Par. 209, 210, 262)

Example Letter of Intent or Guarantee

The following is an example of an Official Bank Letter of Intent or Guarantee. 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 70

(Par. 209, 262)

Example of Annual Reminder and Notification Letter

The following letter is available on the FFAS Employee Forms/Publication Online Website in 

fillable format at https://intranet.fsa.usda.gov.dam/ffasforms/forms.html. CLICK “Find Current 

Forms Using Our Form Number Search”. For “Form Number”, ENTER “1-FSFL Exhibit 70”.

*--

--*

6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1

Exhibit 71

(Par. 209, 210, 262)

CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist

A Completing CCC-195 Servicing

Complete CCC-195 Servicing according to the following table.

Item Instructions

1 Enter producer’s name.

2 Enter FSFL number.

3 Enter State where facility or equipment is located.

4 Enter County Office name where FSFL was processed.

5A Enter FSFL term (3, 5, 7, 10, or 12 years).

5B Enter FSFL annual term year.

Example: FSFL was disbursed August 26, 2015, as FSFL 2015/00001, andCCC-195 

Servicing was initiated on July 11, 2015. FSFL annual term year entered 

should be “1”.

5C Enter FSFL installment due date.

6 A

through 

12 E

For each item listed, CHECK () “Yes”, “No”, or “N/A”, as applicable. The employee 

completing the action shall initial and date each box.

Note: When initials and date are required, lining through the item is not acceptable.

13 A Any County Office employee who initials in items 6 through 12 is required to sign 

as a preparer. Signing as the preparer does not represent that an employee checked 

items 6 through 12, only that the employee completed an item that was initialed and 

dated.

Note: There may be more than 1 preparer signing and dating CCC-195 Servicing.

13 B County Office employee who signs item 13 A shall enter the current date.

14 A

through 

14 C

CED shall indicate whether or not they concur with how items 6 through 12 are 

completed. CED or designee representative shall review CCC-195 Servicing for all 

outstanding FSFL’s.

CED, or designee representative, who:

• completed item 14 A shall sign item 14 B

• signed item 14 B shall enter the current date in item 14 C.

Note: If CED, or CED designee representative, was 1 of the preparers who 

completed items 6 through 12, CED, or CED designee representative, shall not 

complete this section. DD’s must complete items 14 A through 14 C for all 

CED, or CED designee representative prepared FSFL’s.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
Exhibit 71

(Par. 209, 210, 262) 

CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist 

 A Completing CCC-195 Servicing

Item Instructions

15 A 

through 

15 G 

During the applicable State Office or designee review of CCC-195 Servicing 

according to subparagraph 210 D, the State Office or designee shall respond to 

items 15 A through 15 D. Remarks or findings shall be noted for each question, if 

applicable. 

State Office or designee who:

• completed 15 E shall sign item 15 F 

• signed item 15 F shall enter the current date in item 15 G.

16 Enter any remarks about any questions included on CCC-195 Servicing.

17 Important: Every FY the State Office or designee shall select the following for 

each County Office for review beginning October 1: 

• three CCC-195 Servicing, if 10 or less CCC-195 Servicing 

have been completed

• five CCC-195 Servicing, if 11 through 1,000 CCC-195 Servicing 

have been completed.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2 
Exhibit 71

(Par. 209, 210, 262)

CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist 

B Example of CCC-195 Servicing

The following is an example of CCC-195 Servicing.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 3
Exhibit 71

(Par. 209, 210, 262)

CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist (Continued) 

B Example of CCC-195 Servicing (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 4
Exhibit 71

(Par. 209, 210, 262)

CCC-195 Servicing, Farm Storage Facility Loan (FSFL) Servicing Checklist (Continued)

B Example of CCC-195 Servicing (Continued)

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 5
.
Exhibit 72 

(Par. 211, 262) 

Example of First Demand Letter for Installment Payment 

The following is available in a fillable format from the FSA Intranet at http://inside.fsa.usda.gov. 

CLICK “Employee Forms” and CLICK “Find Current Forms Using Our Form Number 

Search”. For “Form Number”, ENTER “1-FSFL Exhibit 72”. 

*-- 

--* 

6-20-18 1-FSFL (Rev. 3) Amend. 2 Page 1 
Exhibit 72 

(Par. 211, 262) 

Example of First Demand Letter for Installment Payment (Continued) 

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 2 
Exhibit 81

(Par. 238)

Deceased Borrower - Secured by FSFL Fixture Only Letter

The following is available in a fillable format from the FSA Intranet at http://inside.fsa.usda.gov. 

CLICK “Employee Forms” and CLICK “Find Current Forms Using Our Form Number 

Search”. For “Form Number”, ENTER “1-FSFL Exhibit 81”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1

Exhibit 82

(Par. 238)

Deceased Borrower - Loan Secured by FSFL Fixture and Real Estate Mortgage or Deed of 

Trust Letter

The following is available in a fillable format from the FSA Intranet at http://inside.fsa.usda.gov. 

CLICK “Employee Forms” and CLICK “Find Current Forms Using Our Form Number 

Search”. For “Form Number”, ENTER “1-FSFL Exhibit 82”.

12-21-17 1-FSFL (Rev. 3) Amend. 1 Page 1
.
Exhibit 83

(Par. 247)

Example of FSFL Annual Installment Deferral Adverse Determination Letter

The following is an example of the FSFL Annual Installment Deferral Adverse Determination Letter

and instructions for State and County Offices to use when drafting the letter. Participants may 

request SED and NAD Director review the FSA determination that an adverse decision is not 

appealable. Contact the National Office if additional guidance is required.

Note: Use Agency letter format with local return address. 

*-- ADVERSE DETERMINATION NOTIFICATION LETTER

(Date of Letter)

(Borrower Name)

(Borrower Address Line 1)

(Borrower Address Line 2)

Dear (Borrower Name),

Your request for a Farm Storage Facility Loan annual installment deferral requested on CCC-777 and filed on (insert date of application) has been 

reviewed by the County/State FSA Committee. The request was not approved. The reason we did not approve the CCC-777 annual installment deferral 

option is:

(Insert specific reasons for not approving the deferral option in plain language. 

After fully explaining the adverse decision and the reasons why the facts in the case are not in dispute, include the following mandatory language in the 

adverse decision: 

“(Insert, as applicable, “I have”, The COC has” or The STC has”) determined that the issue is not appealable. You may seek a review of this 

determination by filing with either the FSA State Executive Director or the National Appeals Division (NAD) Director a written request no later than 30 

calendar days after the date you receive this notice according to the FSA appeal procedures found at 7 CFR Part 780 or the NAD appeal procedures found 

at 7 CFR Part 11. 

If you believe that this issue is appealable, you must write to either the FSA State Executive Director or the NAD Director at the applicable address 

shown and explain why you believe this determination is appealable. 

If you choose to seek an appealability review of this determination with the FSA State Executive Director, you need not send the NAD Director any 

information. If you seek an appealability review with the NAD Director, provide FSA a copy of your request. If you request an appealability review by 

the State Executive Director and the State Executive Director determines that the issue is not appealable, you will be afforded the right to request an 

appealability review by the NAD Director. (Insert SED and NAD addresses.) You may also contact the NAD Director on the NAD website at 

www.nad.usda.gov.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national 

origin, sex, marital status, age (provided the applicant has the capacity to enter a binding contract); because all or part of the applicant’s income derives 

from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The 

Federal agency that administers compliance with this law is the Federal Trade Commission, Equal Credit Opportunity, Washington, D.C. 20580.

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, 

offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, 

national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, 

income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity 

conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. 

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign 

Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the 

Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the 

information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) 

mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; 

(2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender.

Sincerely,

County Executive Director

For the (County Name) FSA County Committee

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6-7-22 1-FSFL (Rev. 3) Amend. 5 Page 1