Here's an interesting one:

Loan to a produce co-op to finance a pre-cooler (corn/produce processing and storage facility) secured by the land and facility. What do you think - 1e?

Assuming that the "land" is not farm land (making it a farm loan due to collateral), I would consider it a business rather than farm credit. My criteria is, can the activity be run by other than the farmer? If so,it is not farm credit (packaging, transporting, etc).

Berico, that would unfortunately be incorrect. Included in the defination of farm loans is:

Loans and advances made for the purpose of financing agricultural production, INCLUDING the growing and storing of crops, the marketing or carrying of agricultural products by the growers thereof and the braeeding, raising, fattening or marketing of livestock.

If the loan is part of the process of getting the ag product to market, it's still a farm loan.

Now Becca, go make me some coffee

Thanks, Dawnie. To take it a step further, what would you consider a winery? They grow the grapes (obviously ag) but what if the loan is for the wine production?

LOL! Ok, Dawnie - I suppose it needs to be something froo-froo a la over-priced-coffee-house?

This is the exact argument we are having here. 1/2 say it's an industrial plant and warehouse that simply handles an agricultural product, 1/2 say it's an agricultural facility that simply handles the post-harvest processing. *sigh* I must've missed that bit of the definition, though. Thanks!

Just for argument's sake - how is this different from a lumber yard (which would be NOT ag)?

Wine is a crop berico, with all the risks associated with ag production (if not more...because if they brew a bad bottle Dawnie won't drink it) The production is as much ag as the growing of the grapes.

What would not be an ag deal would be the distributer if they're using an outside party for this (ie a local booze seller who distributes wine as well as gin, vodka, etc.) They're not part of the process to get the wine to market, they are the market (ie while Walmart might sell vegies, they're not a farm in any sense of the word).

Becca, same thing goes for your deal. You have a deal that is obviously part of the process to bring the food to market, which makes it a farm. An example here would be a fish processing plant. They process and freeze the fish for use in ugly frozen meals like fish sticks. They're part of the "process" to bring it to market and fall under the ag defination.

For arguments sake....are we talking about a lumber yard like Lowes? They fall under the same type of deal as that liqour distributor I was chatting about. If they are retailing finished product they're no longer part of the process, but instead they're the "market". They probably sell drywall and bricks too BUT!!! If we're talking about a lumber yard that is processing (ie they MAKE the 2x4's from trees verses selling the final product) they would then be an ag deal as they're part of the process to bring the raw product to market

Yes, fancy, but no caffeen dangit. I'm only drinking hot cocoa (yes I know it has caffeen but less then coffee) so make that a double skinny with no whipped cream. And a bowl of chili please, as long as you're up. Heh heh

Cocoa and chili?! Making up for lost time on those cravings, are we??? Blech!

BTW - I meant a lumber yard like a sawmill. Buys the logs, cuts the boards, sells to distributor.

Dawnie, congrats on your Outstanding CRA rating. We have seven consecutive outstandings. How many for you?

Only two berico. 7!!! woo hoo!!! You rock. My bank was never able to get the rating they deserved prior to hiring some idiot like me who would dedicate their life to making the case I'm an over acheiver and wouldn't settle for less, so here we sit. And I'm proud of each one, as I'm sure you are of each 7!

Of course now we've set a bench mark LOL so less is not going to work for either of us!

Becca...I'd call that sawmill an ag loan. They're still in the forestry business, bringing the product to market. Now go get my chili! heh heh

Hot cocoa and chili, my goodness. It is 94 and feels over 100 here. The thought of eating or drinking something hot is - well, I can't even think about it.

Actually it's 80 or so here (but it goes down to 50ish at night) but in the morning, I just need that "coffee like" fix And why on earth the kid likes chili I don't know, but the local bagel factory is starting to worry about me since i have chili for lunch every day