Operating loans must be essential to the success of the farming operation and only for the following purposes:
- Costs associated with reorganizing a farm to improve profitability, for example:
- purchase of equipment to convert from conventional to no-till production
- change from stocker to cow-calf production
- shifting from row crop to vegetable production
- purchasing grain drying and storage equipment to facilitate better marketing
- purchase shares in value-added processing and marketing cooperatives
- Purchase of livestock, including poultry
- Purchase farm equipment
- Farm operating expenses including, and not limited to:
- feed
- seed
- fertilizer
- pesticides
- farm supplies
- cash rent
- family living expenses
- initial processing of agricultural commodities, under certain circumstances
- Minor improvements or repairs to buildings
- Refinance certain farm-related debts, excluding real estate
- Land and water development, use, or conservation
- Loan closing and borrower training costs