Farm equipment dealerships in certain areas may have a unique opportunity to increase sales of grain bagging equipment this year, as a new government cost-sharing program is incentivizing farmers to buy it. In fact, farmers located within select counties of Minnesota, North Dakota, South Dakota, Illinois, Indiana, Iowa, Missouri, Tennessee and Kentucky may be reimbursed by up to 90% of their equipment purchases.

In March 2023, the USDA announced the Emergency Grain Storage Facility Assistance Program (EGSFP) as an effort to help areas that experienced widespread damage to existing grain storage facilities due to weather disasters. Eligible counties in Kentucky were selected as a result of tornados that affected the state in December 2021. Counties in other states were selected as a result of derechos, floods, hurricanes and winter storms that happened during 2022.

Program funds will help cover eligible expenses associated with building on-farm grain storage facilities. According to the USDA, grain baggers (including bags) are included in the list of qualifying purchases to receive cost sharing. Program documentation defines grain baggers as “machinery and accessory equipment (not limited to augers, loaders, unloaders) that allow grain to be stored temporarily in a polyethylene plastic sheathing type bag and allows grain to be stored in a dry, controlled environment.”

These cost-sharing payments are anticipated to cover 75% of eligible expenses for most farmers and ranchers. Additionally, those who are designated as underserved producers — which USDA program documents define as “beginning, limited resource, socially disadvantaged and veteran farmers and ranchers” — may receive 90% cost sharing. The maximum payment is $125,000 per person or legal entity.

The expected cost sharing has some manufacturers of grain bagging equipment and their dealers excited about the potential for sales this year. “We expect the EGSFP to have a big impact on sales this year,” says Adam Goblish, sales technical support for Loftness. “We’ve been informing our dealers in the qualifying areas, and they agree this is a great opportunity. The amount of cost sharing available makes purchases of new grain storage a no-brainer for many farmers in eligible counties. And we feel that grain bagging equipment makes sense for a lot of producers looking to take advantage of the program.”

Manufacturers such as Loftness are encouraging dealers to educate their customers about the EGSFP program and to act sooner than later. “Lack of awareness may be the biggest thing holding some farmers back from participating in the program,” Goblish says. “And even though we’ve expanded our production capabilities to improve lead times, demand for equipment is still high. Because of this, we encourage farmers and dealers not to wait until the last minute, so they can guarantee delivery well in advance of the application deadline.”

To apply for cost-sharing, farmers can visit their local Farm Service Agency office and fill out form FSA-413. Those applying as an underserved producer will also need to complete form CCC-860 to verify status. The application period ends Dec. 29, 2023.

More information about EGSFP is available at the USDA’s program webpage or download the EGSFP fact sheet. A map of eligible counties can be downloaded here. 

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