12 CFR 613.3020 : Banks And Banking (§ 1.1 To Parts 1816-1899) — (§ 600.1 To Parts 812-899) — Farm Credit Administration (§ 600.1 To Parts 656-699) — Farm Credit System (§ 609.905 To Parts 656-699) — Eligibility And Scope Of Financing (§ 613.3000 To § 613.3300) — Financing Under Titles I And Ii Of The Farm Credit Act (§ 613.3000 To § 613.3030) — Financing for farm-related service businesses.

(a) Eligibility. An individual or legal entity that furnishes farm-related services to farmers and ranchers that are directly related to their agricultural production is eligible to borrow from a Farm Credit bank or association that operates under titles I or II of the Act.

(b) Purposes of financing. A Farm Credit Bank, agricultural credit bank, or direct lender association may finance:

(1) All of the farm-related business activities of an eligible borrower who derives more than 50 percent of its annual income (as consistently measured on either a gross sales or net sales basis) from furnishing farm-related services that are directly related to the agricultural production of farmers and ranchers; or

(2) Only the farm-related services activities of an eligible borrower who derives 50 percent or less of its annual income (as consistently measured on either a gross sales or net sales basis) from furnishing farm-related services that are directly related to the agricultural production of farmers and ranchers.

(c) Limitation. The authority of Farm Credit banks and associations operating under section 1.7(a) of the Act to finance eligible farm-related service businesses under paragraphs (b)(1) and (b)(2) of this section is limited to necessary capital structures, equipment, and initial working capital.