(a) The formula allocation for FO, CL, or OL loan funds is equal to:

(1) The amount available for allocation by the Agency minus the amounts held in the National Office reserve and distributed by base and administrative allocation, multiplied by

(2) The State Factor, which represents the percentage of the total amount of the funds for a loan program that the National Office allocates to a State Office.

formula allocation = (amount available for allocation−national reserve−base allocation−administrative allocation) × State Factor

(b) To calculate the State Factor, the Agency:

(1) Uses the following criteria, data sources, and weights:

Open Table
Criteria Loan type criterion is used for Data source Weight for
FO loans
(percent)
Weight for
OL loans
(percent)
Farm operators with sales of $2,500-$39,999 and less than 200 days work off the farm FO, CL, and OL loans U.S. Census of Agriculture 15 15
Farm operators with sales of $40,000 or more and less than 200 days work off farm FO, CL, and OL loans U.S. Census of Agriculture 35 35
Tenant farm operators FO, CL, and OL loans U.S. Census of Agriculture 25 20
3-year average net farm income FO, CL, and OL loans USDA Economic Research Service 15 15
Value of farm real estate assets FOs and CLs USDA Economic Research Service 10 N/A
Value of farm non-real estate assets OL loans USDA Economic Research Service N/A 15

(2) Determines each State's percentage of the national total for each criterion;

(3) Multiplies the percentage for each State determined in paragraph (b)(2) of this section by the applicable weight for that criterion;

(4) Sums the weighted criteria for each State to obtain the State factor.

[72 FR 63285, Nov. 8, 2007, as amended at 75 FR 54013, Sept. 3, 2010]


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