[Code of Federal Regulations] [Title 7, Volume 10] [Revised as of January 1, 2008] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR1436.6] [Page 603-604] TITLE 7--AGRICULTURE CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE PART 1436_FARM STORAGE FACILITY LOAN PROGRAM REGULATIONS--Table of Contents Sec. 1436.6 Eligible storage or handling equipment. (a) Loans may be made only for the purchase and installation of eligible storage facilities and permanently affixed drying and handling equipment, for the remodeling of existing storage facilities, or for permanently affixed drying and handling equipment as provided in this section. Eligible storage and handling facilities shall include the following: (1) New conventional-type cribs or bins designed and engineered for whole grain storage and having a useful life of at least 10 years; (2) New oxygen-limiting storage structures or remanufactured oxygen- limiting storage structures built to the original manufacturer's design specifications using original manufacturer's rebuild kits, and other upright silo-type structures designed for whole grain storage or other than whole grain storage and having a useful life of at least 10 years; and (3) New flat-type storage structures including a permanent concrete floor, designed for and primarily used to store facility loan commodities for the term of the loan and having a useful life of at least 10 years; and (4) New structures that are bunker-type, horizontal, or open silo structures designed for whole grain storage or other than whole grain storage and having a useful life of at least 10 years. (b) The calculation of the loan amount may include costs associated with building, improving, or renovating an eligible storage or handling facility, including: (1) Permanently affixed grain handling equipment and grain drying equipment, including perforated floors determined by the approving committee to be needed and essential to the proper functioning of the grain storage system; (2) Safety equipment as required by CCC and meeting OSHA requirements such as lighting, and inside and outside ladders; (3) Equipment to improve, maintain, or monitor the quality of stored grain, such as cleaners, moisture testers, and heat detectors; (4) Electrical equipment, including labor and materials for installation, such as lighting, motors, and wiring integral to the proper operation of the grain storage and handling equipment; and (5) Concrete foundations, aprons, pits, and pads (including site preparation, labor and materials) essential to the proper operation of the grain storage and handling equipment. (c) Storage and handling equipment with respect to which no loans for installation or related costs shall be disbursed under this part include: (1) Portable grain drying equipment, portable handling equipment and portable augers; (2) Structures of a temporary nature that require the weight or bulk of the stored commodity to maintain its shape (such as fences or bags); (3) Used structures or handling equipment; (4) Structures that are not suitable for storing the facility loan commodities for which a need is determined; (5) Storage structures to be used for commercial purposes. Commercial purpose is defined as the storage and handling of grain, whether paid or unpaid, for persons other than the loan applicant, except for family members as defined in 7 CFR Part 718, and tenants or landlords sharing in the crop requiring storage. Any facility that is in working proximity to any commercial storage operation shall be considered to be part of a commercial storage operation; and (6) Portable or permanent weigh scales. (d) Loans may be approved for financing additions to or modifications of an existing storage facility with an expected useful life of at least 10 years if the county committee determines there is a need for the capacity of the structure, but not for the sole replacement of worn out items such as motors, fans, or wiring. [[Page 604]] (e) Loans may be approved for new storage and handling components of a pre-owned structure provided the completed facility has a useful life of at least 10 years. The pre-owned structure must be purchased and moved to a new storage location. Eligible items for such a loan include costs such as new bin rings or roof panels needed to make a purchased pre-owned structure useable, new aeration systems, site preparation, construction off-farm paid labor cost, foundation material and off-farm paid labor. Ineligible items for such a loan include the cost of purchasing and moving the used structure. (f)(1) Paragraphs (a) and (b) of this section shall not apply to sugar-related loans made under this part. (2) For sugar-related loans, the loan amount may include costs associated with the purchase, installation, building, improving, remodeling or renovating an eligible storage or handling facility. Eligible facilities include the following: (i) New conventional-type bins or silos designed for and used to store raw or refined sugar, having a useful life of at least 15 years; (ii) New flat-type storage structures including a permanent concrete floor, designed for and used to store raw or refined sugar, having a useful life of at least 15 years; (iii) New storage structures designed for and used to store in- process sugar, having a useful life of at least 15 years. (iv) Permanently affixed sugar handling equipment determined by the CCC to be needed and essential to the proper functioning of the sugar storage system; (v) Safety equipment CCC requires such as lighting, and inside and outside ladders; (vi) Equipment to improve, maintain, or monitor the quality of stored sugar, such as moisture testers, and heat detectors; (vii) Electrical equipment, including labor and materials for installation, such as lighting, motors, and wiring integral to the proper operation of the sugar storage and handling equipment; and (viii) Concrete foundations, aprons, pits, and pads (including site preparation, labor and materials) essential to the proper operation of the sugar storage and handling equipment. (3) For sugar-related loans, storage and handling equipment that is not eligible for loans, includes: (i) Portable handling equipment and portable augers; (ii) Structures of a temporary natures that require the weight or bulk of the stored commodity to maintain its shape (such as fences or bags); (iii) Used or pre-owned structures or handling equipment; (iv) Structures that are not suitable for storing raw or refined sugar; (v) Weigh scales. (4) For sugar-related loans, loans may be approved for financing additions to or modifications of an existing storage facility with an expected useful life of at least 15 years if CCC determines there is a need for the capacity of the structure. [66 FR 4612, Jan. 18, 2001, as amended at 67 FR 54938, Aug. 26, 2002]