The bill makes it easier for farmers to finance on‑farm fertilizer storage and handling—potentially lowering costs and improving infrastructure and safety—while risking uneven benefits favoring larger farms, residual local safety hazards if poorly managed, and added federal loan exposure.
Farmers (including small farm businesses) can get USDA-backed loans to build or upgrade on-farm fertilizer storage and handling (dry bins, tanks, blenders, anhydrous vessels), improving input management and reducing the need for costly off-site handling or emergency purchases.
Rural communities and farm workers benefit from improved safety and environmental protection because loan-funded projects can pay for proper foundations, electrical systems, piping, and pumps for fertilizer handling.
The program may disproportionately benefit larger or better-capitalized farms that can apply for and use loans, putting the smallest farms at a competitive disadvantage.
Even with funding, new or expanded on-farm fertilizer and anhydrous ammonia storage could increase local safety and environmental risks if facilities are poorly sited or mismanaged.
Taxpayers could face greater federal loan exposure and administrative costs if demand for USDA-backed loans expands.
Based on analysis of 2 sections of legislative text.
Allows Farm Storage Facility loans to cover fertilizer storage and handling equipment and requires USDA to update regulations within 180 days.
Official title: Amend the Food, Conservation, and Energy Act of 2008 to make fertilizer storage facilities eligible for farm storage facility loans, and for other purposes.
Introduced June 22, 2026 by John Hoeven · Last progress June 22, 2026
Amends the Farm Storage Facility Loan Program to allow loans to be used for fertilizer-related storage and handling equipment (for example, dry bins, liquid tanks, blenders, anhydrous ammonia vessels) and associated foundations, electrical systems, conveyors, plumbing, piping, and pumps. It requires the USDA Secretary to update the program's regulations within 180 days of enactment so the loan program reflects these new eligible uses.