FARM Manual - ELIGIBILITY

B. ELIGIBLE FARMERS

A farmer is required to meet the following:

1. Intends to be or currently is engaged in a farming operation in Wisconsin;
2. Based on a current financial statement listing the assets and liabilities of the farming operation, the amount of the Farmer's debts, including the FARM loan, may not exceed 85% of the Farmer's assets, including the value of the agricultural assets to be acquired, or the improvements to be made, with the proceeds of the loan;
3. Has proof of Wisconsin residency or, if a partnership, corporation or association, the legal entity must be registered in Wisconsin;
4. Has sufficient collateral to cover the value of the FARM loan;
5. Is not delinquent in making child support, birthing expense or maintenance payments;
6. Is not in default on any WHEDA loans;and
7. If a startup farmer, the individual(s) has no less than 3 years of farming experience including managing the day to day operations of a farm.

In addition, it is the Lender's responsibility to make the following assurances when evaluating a Farmer's application for participation in FARM:

	The Lender will consider the Farmer's assets, cash flow and managerial ability to repay the loan, and in the Lender's judgment, it is reasonably likely that the Farmer's primary and secondary sources of payment are sufficient to preclude a voluntary or involuntary liquidation before the end of the loan term;
	To the Lender's knowledge, the Farmer is not currently in bankruptcy, has not filed for, and does not anticipate filing bankruptcy (Chapter 7, 11, 12 or 13) at the time of applying for or during the term of the FARM loan; and
	To the Lender's knowledge, the Farmer has no outstanding judgments or tax liens.