Full question:
I have always understood that any loan (including autos, debt consolidation, school, etc.) to a farmer or rancher that derives the bulk of his income from farming or ranching, any loan to these individuals is considered an agricultural loan, whether they are for personal use or not.
- Category: Debts and Credit
- Subcategory: Lending
- Date:
- State: Colorado
Answer:
Generally, an agricultural loan is one that is used for agricultural purposes, as defined by the relevant statutes. However, some courts have ruled that loans for personal use can be classified as business loans if they help the individual maintain their agricultural business.
According to Colorado statutes, an "agricultural purpose" refers to activities related to the production, harvest, marketing, and processing of agricultural products. These products include livestock, dairy, and various crops (Colo. Rev. Stat. § 5-1-301).
Therefore, while loans specifically for agricultural purposes are clearly defined, the classification of loans for personal use may depend on their impact on the agricultural business.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.