USDA will publish the draft regulations for this program in the Federal Register this week. A 30 day comment period will follow. The interest rate charged is the rate equivalent to the rate charged on Treasury securities of comparable maturity in effect during the month the loan is approved. The rate will remain in effect for the term of the loan. All loans shall be secured by a promissory note and security agreement covering the farm storage facility.
Borrowers are limited to obtaining one loan per fiscal year.
Principal and interest will be amortized over the term of the loan. Equal annual installments will be due by no later than the last day of each 12 month period of the loan. Yes, loan amounts outstanding, whether or not overdue, may be collected from payments that the borrower may otherwise be due to receive as marketing loan gains or loan deficiency payments. My County Links of Interest Last Updated July 18, 2000. Links contained on this web site to information provided by other organizations are presented as a service and neither constitute nor imply endorsement or warranty.