---
kind: "section"
citation: "12 C.F.R. § 613.3020"
title: "12"
number: "613.3020"
heading: "Financing for farm-related service businesses."
url: "https://uscodex.org/cfr/12/613.3020"
---

# §613.3020. 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)](#b-1) and [(b)(2)](#b-2) of this section is limited to necessary capital structures, equipment, and initial working capital.

## Notes

### Amendments

[62 FR 4441, Jan. 30, 1997, as amended at 66 FR 28643, May 24, 2001]

### Source

Source: 62 FR 4441, Jan. 30, 1997, unless otherwise noted.

### Authority

Authority: Secs. 1.5, 1.7, 1.9, 1.10, 1.11, 2.2, 2.4, 2.12, 3.1, 3.7, 3.8, 3.22, 4.18A, 4.25, 4.26, 4.27, 5.9, 5.17 of the Farm Credit Act (12 U.S.C. 2013, 2015, 2017, 2018, 2019, 2073, 2075, 2093, 2122, 2128, 2129, 2143, 2206a, 2211, 2212, 2213, 2243, 2252).

### Amendments

[62 FR 4441, Jan. 30, 1997, as amended at 66 FR 28643, May 24, 2001]