WASHINGTON, DC, US — The US Department of Agriculture’s Farm Service Agency (FSA) announced on Aug. 7 that it is beginning to issue cost-share assistance payments through the Emergency Grain Storage Facility Assistance Program (EGSFP) for approved and funded applications that have met the requirements for partial or final payment.

The FSA first announced $20 million for this program in March to help producers affected by eligible disaster events from Dec. 1, 2021, through Aug. 1, 2022, that damaged or destroyed large commercial grain elevators in eight Midwest states. Due to the high volume of program applications received, the FSA said it has increased the initial funding amount for EGSFP to $80 million in cost-share assistance.   

The unprecedented outbreak of tornadoes and derechos affected numerous counties in Kentucky, Illinois, Iowa, Minnesota, Missouri, North Dakota, South Dakota and Tennessee. Significant damage or destruction to local, commercial elevators left many grain producers with limited storage capacity for harvested commodities and with no or limited marketing options. This support is being made available under the Commodity Credit Corp., which allows the USDA to act quickly to help agricultural producers navigate significant and unpredictable challenges.

 “The applications that FSA has received for this assistance under our original funding announcement far exceed the limited funding available for the program,” said Zach Ducheneaux, administrator with the FSA. “Given the critical need for assistance across the countryside, the now $80 million allocation will be used to fund additional eligible applications that have already been received.”

Even with the $80 million in support for EGSFP, the USDA said the program will not be able to meet the needs of many producers who are still experiencing storage deficits due to these disaster events. For this reason, the FSA has secured an additional $40 million in reallocated CCC funds to provide much-needed help to producers and is exploring options outside of EGSFP to do so. Details will be announced in the coming weeks.

To be eligible for EGSFP, producers must have eligible grain production and demonstrate a need for additional on-farm grain storage in an affected county impacted by an eligible disaster.    

Approved EGSFP applicants who meet the requirements for payment will receive cost-share assistance for the construction of new or renovated grain storage capacity and equipment required to meet drying and handling needs to support the orderly marketing of commodities in counties affected by these disaster events.