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FARMER-OWNED STORAGE FACILITIES … NGFA Wants New Grain Storage Built At Commercial Sites The 2008 farm bill contains a provision that establishes a subsidized loan guarantee program to help farmers build or update storage and handling facilities for agricultural commodities. The National Grain and Feed Association (NGFA) is concerned that a wave of construction of on-farm storage facilities could disrupt or economically harm the commercial storage sector which NGFA represents. To help avoid the negative effects while still meeting the goals of the program, NGFA is calling on USDA to authorize producers to use newly allocated loan guarantees to build new or modify existing storage at commercial facilities under purchase or lease arrangements, including so-called “condominium” storage arrangements. Under such arrangements, producers enter into written agreements with commercial elevators for guaranteed occupancy of all or a designated portion of the new space. These written arrangements may consist of purchase agreements, limited partnerships or long-term leases between producers and their elevators for storage of specific commodities,” says NGFA. Such an arrangement would give producers who prefer not to construct needed storage on-farm “an opportunity to access new, dedicated storage at privately owned or cooperative commercial facilities where they have a strong, ongoing commercial relationship or ownership interest,” according to a letter NGFA sent to USDA.
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