GLICKMAN ANNOUNCES NEW LOANS FOR ON-FARM STORAGE 
                                            Release No. 0153.00
                                                               
                            Mary Beth Schultheis (202) 720-4623
                                  mary_beth.schultheis@usda.gov
                                     Dann Stuart (202) 690-0474
                                    Dan-Stuart@wdc.fsa.usda.gov


GLICKMAN ANNOUNCES NEW LOANS FOR ON-FARM STORAGE

     WASHINGTON, May 9, 2000   Agriculture Secretary Dan Glickman said today
that USDA will begin making seven-year, low-cost loans to farmers to help
build or upgrade commodity storage and handling facilities.  

     "To get the best price for their crops, farmers need marketing
flexibility," Glickman said.  "On-farm storage gives farmers the control they
need to segregate their crops and decide when to sell them."

     USDA's Farm Service Agency will implement the program to provide seven-
year financing for on-farm storage of wheat, rice, soybeans, sunflower seed,
canola, rapeseed, safflower, flaxseed, mustard seed, crambe, other oilseeds to
be announced, corn, grain sorghum, oats, and barley.  The interest rate
charged will be the same as the rate charged on comparable Treasury securities
in effect during the month the loan is approved.  The rate will remain in
effect for the term of the loan.  

     Farmers may file loan applications starting on May 30, 2000.  Farmers
who bought or built storage facilities between February 2, 2000 and May 30,
2000 may apply for a loan and may be approved if they meet eligibility and
loan security requirements. 

     USDA will publish the draft regulations for this program in the Federal
Register this week.   A 30 day comment period will follow. A final rule will
be published and codified after comments have been considered on the Farm
Storage Facility Loan Program and USDA financing for storage structures for
commodities other than grain, such as silage; alternative types of storage,
such as "condominium storage"; and storage facilities for other agriculture
products.  Additional information can be found on website:  www.fsa.usda.gov

                                
                                
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