A couple of issues raise when I read this.
First this is a farm loan...remember size matters
is this deal over $500M? (The master note). If so...it's not reportable, if it's below $500M then keep reading...ahh heck Lestlie, keep reading anyhoo!
I have a similar deal that on my books. The master line is well above reporting limits, but system requirements force us to book ooddleesss of small loans for each draw due to the type of business and collateral. My regulators advice was, don't report the master note but report each of the individual notes because they show on the system. Leaving these deals out of our reporting could cause issues with data integrity (lots of seemingly reportable deals not making the LR). BUT! (Big But) this is ONLY done due to the system issue. You wouldn't want to do this to artificially inflate your CRA numbers. And, if you do it for one, do it for all that you have on the books operating under the same type of scenario. Consistancy ya know
If the master line is below $500M (small farm) or $1MM (small business) then I was told to report this as well, if there is a formal note signed meeting all the general requirements of a small business loan. If it's a more informal issue (say the bank has decided through a credit memo that this client can borrow up to XXX amount of bucks without board approval, but the client is unaware of this, and a note is not signed) then it's not reportable of course as you can't tie it to a real note.
And...(that's my 50th and isn't it?) if it's a CD deal...don't try to double dip and take the small deals and the large deal
You'll get beat with a wet noodle or a chopstick by any decent examiner out there.