A low interest loan program for Alabama cattlemen to provide financial assistance for the construction of approved commodity storage barns for use on farms and ranches in Alabama. Access to a commodity barn would enable the farmer to buy necessary commodities in bulk quantities and subsequently receive cost savings. Commodity barn plans must meet certain standard criteria with said plans required to be reviewed and approved by the oversight committee prior to start of completion.

In no instance will AADA funding exceed the commodity barns' total construction material cost (to be verified by receipts.) As a guideline, three loan categories have been established based on the size of the cattle operation:

         • $7,500 for a one-bay barn

         • $15,000 for a two-bay barn

         • $22,500 for a three-bay barn

All loans will be for a maximum of three years at a simple annual interest rate of 3 percent. A signed promissory note denoting annual payments will be required along with verifiable security that sufficiently collaterizes the loan. A $25 fee will be charged to cover the filing cost.

For more information contact:

Alabama Agricultural Development Authority

Post Office Box 3336

Montgomery, Alabama 36109-0336

(334)240-7245

(334)240-7270 FAX

e-mail: john.gamble@agi.alabama.gov