---
kind: "section"
citation: "7 C.F.R. § 763.10"
title: "7"
number: "763.10"
heading: "Feasibility."
url: "https://uscodex.org/cfr/7/763.10"
---

# §763.10. Feasibility.

- (a) The buyer's proposed operation as described in a form acceptable to the Agency must represent the operating cycle for the farm operation and must project a feasible plan as defined in [§ 761.2(b)](/cfr/7/761.2.md?p=b) of this chapter.
- (b) **The projected income, expenses, and production estimates—**
  - (1) Must be based on the buyer's last 3 years actual records of production and financial management unless the buyer has been farming less than 3 years;
  - (2) For those farming less than 3 years, a combination of any actual history and other reliable sources of information may be used. Sources must be documented and acceptable to the Agency; and
  - (3) May deviate from historical performance if deviations are the direct result of specific changes in the operation, reasonable, justified, documented, and acceptable to the Agency.
- (c) Price forecasts used in the plan must be reasonable, documented, and acceptable to the Agency.
- (d) The Agency will analyze the buyer's business ventures other than the farm operation to determine their soundness and contribution to the operation.
- (e) When a feasible plan depends on income from sources other than from owned land, the income must be dependable and likely to continue.
- (f) When the buyer's farm operating plan is developed in conjunction with a proposed or existing Agency direct loan, the two farm operating plans must be consistent.

## Notes

### Authority

Authority: 5 U.S.C. 501 and 7 U.S.C. 1989.

### Source

Source: 76 FR 75430, Dec. 2, 2011, unless otherwise noted.