1. (a) The formula allocation for FO, CL, or OL loan funds is equal to:

   1. (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. (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

2. (b) To calculate the State Factor, the Agency:

   1. (1) Uses the following criteria, data sources, and weights:

      Criteria	Loan type criterion is used for	Data source	Weight forFO loans(percent)	Weight forOL 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. (2) Determines each State's percentage of the national total for each criterion;
   3. (3) Multiplies the percentage for each State determined in paragraph (b)(2) of this section by the applicable weight for that criterion;
   4. (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]