According to today's USDA Grain Transportation Report, on March 9, USDA announced that producers affected by eligible severe weather events in some Midwestern and Southeastern States can apply for cost-share assistance for on-farm grain storage facilities and upgrades.
USDA’s Emergency Grain Storage Facility Assistance Program (EGSFP) will aid eligible producers in Kentucky, Minnesota, South Dakota, Illinois, Indiana, Iowa, Missouri, North Dakota, and Tennessee.
Administered by USDA’s Farm Service Agency, EGSFP has an initial allocation of $20 million.
The program comes in the wake of several severe weather events in 2021 and 2022 that reduced grain storage capacity. For example, damages from a tornado in December 2021 resulted in the closure of the Mayfield Grain Company in Mayfield, KY.
Grain storage helps moderate gaps between agricultural production and transportation demand. Thus, reductions in grain storage capacity compromise its function and can put additional strain on transportation systems (Grain Transportation Report, March 2, 2023).