(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:
| 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]