§ 130c.19. Eligible uses.
(a) Loan proceeds. Proceeds from a loan made under this chapter shall be used by the loan recipient solely for eligible sustainable agriculture practices. Sustainable agriculture practices include agricultural practices which:
(1) Are ecologically beneficial.
(2) Improve and ensure the soil and water quality for future generations.
(3) Enhance environmental quality and the natural resource base upon which the agricultural economy depends.
(4) Make the most efficient use of nonrenewable resources.
(5) Integrate natural biological cycles and controls, such as planting cover crops to defend against insects and weeds, using mechanical tillage to control weeds and relying on natural systems, such as biological controls and natural predators.
(6) Ensure the optimum and environmentally compatible use of or eliminate the need for the purchase of off-farm inputs such as chemical or synthetic fertilizers and pesticides.
(7) Make the best use of on-farm labor and resources, such as using animal and plant manure to enrich soil.
(8) Sustain the economic viability of farm operations, by implementing practices which lower production costs.
(9) Enhance the quality of life for farmers and society.
(10) Satisfy human food and fiber needs.
(11) Emphasize planting a diverse array of crops and the production of alternative crops.
(b) Ineligible use of proceeds. Loan proceeds may not be used for any of the following purposes:
(1) To refinance a portion of the total project cost or any other existing loans or debts.
(2) To finance, fund or to use in a project outside the geographic boundaries of this Commonwealth.
(3) To purchase off-farm inputs, such as chemical or synthetic fertilizers and pesticides.
(4) To fund any educational or promotional program.
Cross References This section cited in 7 Pa. Code § 130c.18 (relating to review of a loan application).
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