Our bank became a large bank for CRA as of the first of the year, so I am still trying to make sure we are using the correct call codes on some of our loans. I have read and re-read the call report instructions and can't seem to make up my mind on where these would fit. Any input???

Loan 1: Loan is to purchase 50 acres of land - call code given to the loan is 1b. The loan officer says the land is not used for ag purposes, but is held just because the borrower wants to own land. He isn't doing anything with it besides maybe hunting. My first thought was to classify it as 1a2, but I want to be sure before having our credit department make changes to any loans (we have several like this in our rural markets).

Loan 2: Loan is made to an individual to purchase a tractor, which will be used on his own land. He does not have farm revenue at all...he just lives on several acres and needed something larger than a typical lawn mower to maintain the property. The call report instructions show that loans and advances to farmers for purchases of farm machinery, equipment and implements should be coded 3. I can see this being classified as farm equipment, but I'm leaning towards 6b because it is for personal use. I'm curious to know what everyone else thinks on this one.

If it were in my shop, I would probably agree with 1a2 for loan 1. As far as loan 2, I would also want to review my state usury laws...here in Missouri, it speaks to that situation and the loan amount helps us determine what we are dealing with.

Loan 1: I would explore if the land is "usable" as farm land. It does not have to be currently used as farmland.

"Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production. Farmland includes grazing or pasture land, whether tillable or not and whether wooded or not."

Loan 2: I would treat this as a personal loan; he is not a farmer, he just has a lot of land to mow.

Thank you both!