Limitations.

CFR · 2024-01-01 · US · Title 7

(a) EM loans must comply with the general limitations established at § 764.102. (b) EM loans may not exceed the lesser of: (1) The amount of credit necessary to restore the farming operation to its pre-disaster condition; (2) In the case of a physical loss loan, the total eligible physical losses caused by the disaster; or (3) In the case of a production loss loan, 100 percent of the total actual production loss sustained by the applicant as calculated in paragraph (c) of this section. (c) For production loss loans, the applicant's actual crop production loss will be calculated as follows: (1) Subtract the disaster yield from the normal yield to determine the per acre production loss; (2) Multiply the per acre production loss by the number of acres of the farming operation devoted to the crop to determine the volume of the production loss; (3) Multiply the volume of the production loss by the market price for such crop as determined by the Agency to determine the dollar value for the production loss; and (4) Subtract any other disaster related compensation or insurance indemnities received or to be received by the applicant for the production loss. (d) For a physical loss loan, the applicant's total eligible physical losses will be calculated as follows: (1) Add the allowable costs associated with replacing or repairing chattel covered by hazard insurance (excluding labor, machinery, equipment, or materials contributed by the applicant to repair or replace chattel); (2) Add t

official document · source cfr-2024 · id 7:§ 764.353