HB-1-3560 

CHAPTER 12: FARM LABOR HOUSING 

LOANS AND GRANTS 

 

12.1 INTRODUCTION 

This chapter describes the loan and grant origination process for Farm Labor Housing 

projects. While the origination process for loans and grants to these projects has many 

similarities to the process for Section 515 loans, there are several important differences. This 

chapter will highlight the additional requirements and procedures that are specific to the process 

of making Farm Labor Housing loans and grants. 

When processing Farm Labor Housing loan or grant applications, Loan Originators will 

follow the basic procedures presented in Chapters 4 and 5. While these chapters focus on the 

procedures for processing Section 515 loan applications, these procedures also apply to farm 

labor housing. This chapter supplements this guidance by describing how these procedures 

apply to farm labor housing. 

Section 1 discusses the loan and grant origination process for Off-Farm Labor Housing 

projects, including the selection of applications through a Notice of Funding Availability 

(NOFA) process, the awarding of funding on a ranking basis, and the processing of applications 

through State Offices. 

Section 2 details the procedures for processing applications for On-Farm Labor Housing 

loans, including the award of funds through the National Office on a first-come, first-served 

basis, and the review and processing of applications by the Field Office. 

SECTION 1: OFF-FARM LABOR HOUSING LOANS AND GRANTS 

12.2 OVERVIEW 

Off-Farm Labor Housing projects are designed to increase the supply of affordable 

housing for farm laborers regardless of the farm where they work. Loans, grants, or both may 

finance these projects. Developers of these projects may apply for Agency rental assistance 

contracts. In addition, under Section 516(i) of the Housing Act of 1949 (42 U.S.C. 1486(i)), the 

Agency may award technical assistance grants to eligible private and public nonprofit agencies 

to encourage the development of farm labor housing. 

Off-farm labor housing is normally developed by broad-based nonprofit organizations or 

public bodies that see a need for labor housing as a specific market area. It is not restricted by 

the designated places requirement that applies to Section 515 loans and may be constructed in 

either urban or rural areas so long as the applicant can justify the need. Each year the Agency 

establishes a specific allocation of funding for the development of off-farm labor housing. 

Announcement of this allocation is published annually through a NOFA. Interested applicants 

may then submit project applications to their Field Office to seek funding. Just like Section 515 

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projects, applications are selected for further processing, and later, applicants must submit final 

applications. 

For Section 514 and 516 programs, farm labor is a service or services in connection with 

cultivating the soil or raising or harvesting any agriculture or aquaculture commodity; or in 

catching, netting, handling, planting, drying, packing, grading, storing, or preserving in the 

unprocessed stage, without respect to the source of employment (but not self-employed), any 

agriculture or aquaculture commodity; or delivering to storage, market, or a carrier for 

transportation to market or to processing any agricultural or aquacultural commodity in its 

unprocessed stage. For a more complete description of farm labor, see Attachment 12-A. 

12.3 APPLICANT ELIGIBILITY FOR OFF-FARM LABOR HOUSING 

[7 CFR 3560.555]

A. Eligible Applicants for Farm Labor Housing Loans 

To be eligible for a Section 514 Farm Labor Housing loan, the applicant must meet 

the eligibility requirements as described in Section 3 of Chapter 4, and the requirements 

established under 7 CFR 3560.555. Applicants must be one of the following to be 

eligible: 

 A broad-based nonprofit organization. A nonprofit entity must meet the requirements 

for nonprofit organizations established in Section 3 of Chapter 4, and have a 

membership that reflects a variety of interests of the area where the housing will be 

located. 

 A limited partnership with a nonprofit general partner. This type of limited 

partnership must meet the requirements established under 7 CFR 3560.55(d). 

 A nonprofit organization of farmworkers. A nonprofit organization of farmworkers 

must have representation on the Board of Directors from the area where the housing 

is located. Directors may be elected who are not members of the organization but are 

experienced in such fields as real estate management, finance, or related businesses 

provided member directors represent a majority of the board. 

 A Federally recognized Indian tribe. 

 An agency or political subdivision of State or local government. 

B. Eligible Applicants for Farm Labor Housing Grants 

To be eligible for a Section 516 Farm Labor Housing grant, the applicant must also 

meet the following requirements: 

 A broad-based nonprofit organization. A local nonprofit entity must meet the 

requirements for nonprofit organizations established in Section 3 of Chapter 4, and 

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have a membership that reflects a variety of interests of the area where the project 

will be located. 

 A nonprofit organization of farmworkers. A nonprofit organization of farmworkers 

must have representation on the Board of Directors from the area where the housing 

is located. If member directors represent a majority of the Board, directors who are 

not members of the organization may be elected, but they must be experienced in 

such fields as real estate management, finance, or related businesses. 

 A Federally recognized Indian tribe. 

 An agency or political subdivision of State or local government. 

1. Maximum Grant Amount 

The maximum grant amount is limited to no more than 90 percent of the total 

development cost (TDC) of the project or that portion of the TDC that exceeds the sum of 

any amount provided by the applicant from their own resources plus the amount of any 

loans approved for the applicant, considering the capacity of the applicant to amortize the 

loan. The remaining portion must be available at the time of loan closing and may come 

from a variety of sources, including an Off-Farm Labor Housing loan. If a Farm Labor 

Housing loan is needed, the applicant will file an application for a combination loan and 

grant at the same time. 

2. Documented Need for the Project 

The applicant must document that the housing and related facilities will fulfill a 

pressing need in the area in which the project is or will be located and that there is 

reasonable doubt that such housing can be provided without the grant. 

12.4 TECHNICAL ASSISTANCE GRANTS 

The Agency may award technical assistance grants to eligible private and public 

nonprofit agencies. These grant recipients will, in turn, assist other organizations to obtain loans 

and grants for the construction of farm labor housing. 

Technical assistance services may not be funded under both this paragraph and under 

7 CFR 3560.53(o). In addition, technical assistance will not be funded by the Agency when an 

identity-of-interest (IOI) exists between the technical assistance provider and the loan or grant 

applicant. 

12.5 PROJECT ELIGIBILITY 

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HB-1-3560 

For a project application to be eligible to receive a loan or grant under the Off-Farm 

Labor Housing program, it must meet specific project eligibility requirements. These 

requirements include site requirements and design requirements. 

A. Site Requirements [7 CFR 3560.558]

Off-Farm Labor Housing projects must comply with the site requirements developed 

in 7 CFR 3560.558 with the exception of the requirement that the property be located in a 

designated place. Farm labor housing may be developed in both urban and rural areas. 

Off-Farm Labor Housing project applications will not be considered for funding 

when: 

 RHS has selected another Farm Labor Housing loan/grant request in the same market 

area for further processing; 

 A previously approved Agency, U.S. Department of Housing and Urban 

Development (HUD), or other assisted Multi-Family Housing project or similar 

project in the same market area in which farmworkers are eligible tenants has not 

been completed, has not reached its projected occupancy level, or is experiencing 

high vacancy levels; 

 A Special Note Rent (SNR) or similar servicing tool in the same market area is 

pending or in effect; or 

 The need in the market area is for additional rental assistance or similar subsidy, not 

for additional housing units. 

B. Design Requirements [7 CFR 3560.559]

Applications for Off-Farm Labor Housing loans and grants must meet the design 

requirements established in 7 CFR 3560.559. 

1. Interior/Exterior Washing Facilities 

Applications should consider incorporating interior and exterior washing facilities for 

tenants, as necessary to protect the asset and the tenants from excess dirt and chemical 

exposure. Such facilities might include a boot washing station, hose bibs, or bathroom 

within the dwelling unit that is accessible to the dwelling entrance, depending on the type 

of work that farmworkers in the local area perform. Applicants should include 

documentation of the type of work that proposed tenant laborers will perform, as well as 

what outdoor washing facilities will accommodate the project’s needs as part of the 

application. 

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2. Seasonal Labor Housing 

Seasonal farm labor housing that will be occupied for 8 months or less per year by 

migrant farmworkers while they are away from their residence may be constructed in 

accordance with RD Instruction 1924-A, Exhibit I, as opposed to RD Instruction 1924-C. 

The application should clearly document the standards under which the applicant 

proposes to develop the housing. 

12.6 LOAN AND GRANT FUND USES 

A. Eligible Uses of Funds [7 CFR 3560.53(k) and (o)]

In addition to the eligible uses of loan funds listed in Attachment 4-B, loan and grant 

funds may also be used to provide: 

 Reimbursement for technical assistance received from another nonprofit organization, 

including legal, technical, and professional fees of up to 4 percent of TDC to assist in 

the organization’s formation and in the development and packaging of a loan 

application; 

 Initial operating expenses of up to 2 percent of the development cost for any type of 

applicant except an individual farm owner, family farm corporation or partnership, 

an association of farmers, or a limited partnership; 

 Tenant-related facilities that the applicant can document are necessary, such as 

daycare facilities and computer learning centers; and 

 Facilities for seasonal or temporary use with appropriate furnishings and equipment. 

B. Prohibited Uses of Funds [7 CFR 3560.554]

Loan and grant funds may not be used for any purpose prohibited by 

7 CFR 3560.554, the same prohibitions that apply to Section 515 loans, except that 

Section 514/516 funds may be used to finance the development of housing to serve 

primarily temporary and transient residents (see Attachment 4-C). 

12.7 SUBMISSION AND PROCESSING OF INITIAL APPLICATIONS 

A. Content of Initial Applications 

Initial applications for off-farm labor housing have the same basic submission 

requirements as Section 515 project applications (see Exhibits 4-6 and 4-7). 

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B. Completeness Review 

Loan Originators must review initial applications for completeness in accordance 

with the instructions in Section 2 of Chapter 4. 

C. Eligibility Review 

In reviewing an application for eligibility, a loan originator should ensure that the 

request for funds is in compliance with Paragraphs 12.3 through 12.6, and in accordance 

with Chapter 4. Loan Originators need to remember that the designated places 

requirements do not apply to farm labor housing, and applications should not be removed 

from processing because of failure to be located in a designated place. 

D. Scoring and Ranking of Initial Applications 

State Offices will then score and rank initial applications for Farm Labor Housing 

loans and grants in accordance with the requirements of the NOFA and the procedures 

described in Chapter 4, Section 2. A Loan Review Committee must review the scoring 

and the ranking of the applications prior to forwarding them to the National Office for 

selection for funding. 

E. National Ranking and Selection of Initial Applications 

1. Ranking of Initial Applications on the National Level 

The Agency will review, score, and rank loan and grant applications according to 

criteria periodically published in the NOFA. 

Once the ranking and scoring process has been completed in each State, State Offices 

must forward all eligible applications to the National Office for selection through the 

national funding process. 

Each year the National Office will notify State Offices of the deadline for submitting 

applications for consideration in the national funding selection process. 

2. Selection of Initial Applications by the National Office 

Off-Farm Labor Housing applications will be ranked on a national basis according to 

the scoring awarded to each application on the local level. Funds will then be awarded to 

the top-scoring applications. 

If, after award, an applicant chooses not to proceed to the next stage or is not 

successful in completing the project, then the next highest-ranked application will be 

eligible to use the funds reserved for the unsuccessful project. 

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F. Notification of Initial Applications Selection 

The National Office will inform each State Office of the initial applications that have 

been selected from the State for funding. The State Office, in turn, will notify the 

applicants selected by the National Office and invite them to submit a final application in 

accordance with Chapter 4. All applicants should receive one of three types of letters. 

Any letter that the Agency sends for any reason other than to invite an application, must 

include the standard ECOA notice, a copy of which is provided in Attachment 1-A. 

1. Handbook Letter 106 (3560), Notice of Pre-application Review Action 

This letter would go to all applicants who were selected for further processing in the 

national competition. 

2. Handbook Letter 107 (3560), A Letter Informing the Applicant of the Lack of 

Funds 

This letter is sent to all applicants who were not awarded funds in the national 

competition. The letter should advise the applicant that if one of the selected applications 

does not proceed to the next stage, the applicant’s application could be funded. 

3. Handbook Letter 108 (3560), Letter Denying Funding due to Ineligibility 

This letter would be sent to any applicant who was not considered for funding 

because of ineligibility. Ineligibility would normally be determined before the 

application is submitted for funding consideration either on the State or national level. 

12.8 FURTHER PROCESSING OF INITIAL APPLICATIONS 

For the Off-Farm Labor Housing program, the further processing of initial applications 

should be performed in accordance with Chapters 4 and 5. However, because there are 

additional requirements for Off-Farm Labor Housing projects, some procedures for reviewing 

initial applications are different. These procedures are covered below. 

A. Project Eligibility 

When reviewing initial applications for project eligibility, Loan Originators must 

address the following considerations. 

 Inform applicants that the proposed project does not have to be located in a rural 

location or meet the designated places criteria; 

 Confirm that the applicant adequately provided for exterior washing facilities in the 

project budget; and 

 Check that the applicant adequately addressed whether the project will be used yearround or seasonally and to what standards the housing will be built. 

(02-24-05) SPECIAL PN 12-7 
HB-1-3560 

B. Applicant Eligibility 

When determining applicant eligibility, the Loan Originator must consider the 

following items: 

 The applicant must qualify as one of the five eligible entities listed in Paragraph 12.3. 

 If applicants are also requesting grant funding, they must have demonstrated or 

documented that: 

 The organization is a permanent one with the purpose of providing low-income 

housing for farmworkers; 

 The source of the balance of the total development costs for the project that would 

not be paid for with grant funds; and 

 The pressing need for the project and that such a need cannot be fulfilled without 

grant funding. 

C. Project Feasibility 

The applicant must demonstrate in the initial application a need for affordable farm 

labor housing in the market area as described in Paragraph 4.18. Applicants should 

provide the following analysis with their initial application to justify project feasibility: 

 Current and projected future levels of agricultural activity in the market area; and 

 Current and projected future levels of need for farmworkers that meets the program 

eligibility requirements. The market study must exclude those that are not eligible 

(e.g., farmworkers who are not citizens of the United States or legally admitted for 

permanent residence). 

D. Calculation of the Allowable Grant Amount 

The State Office will calculate the allowable grant amount, using an automated cash 

flow analysis tool and project economic data furnished by the applicant. Final loan/grant 

levels will be determined by assessing area rents, operating and maintenance expenses, 

rental assistance availability, the resources of the applicant, and the ability of the 

applicant to repay the loan. 

12.9 SUBMISSION AND PROCESSING OF FINAL APPLICATIONS 

A. Security Value and Borrower Contributions 

Loan Originators should follow the processing procedures outlined in Chapter 5 for 

Off-Farm Labor Housing projects. A key exception to consider in processing the final 

loan applications is that the amount of any grant may not exceed the lesser of 90 percent 

of the TDC or that portion of the TDC that exceeds the sum of any amount provided by 

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the applicant from their own resources plus the amount of any loans approved for the 

applicant, considering the capacity of the applicant to amortize the loan. 

1. Determining the Security Value of the Loan 

In determining the security value of the Farm Labor Housing project, the Loan 

Originator must take into account the total amount of both the loan and the grant 

proposed for the project. 

2. Determining the Contribution of the Borrower 

 For projects requesting only a Section 514 loan. The equity contribution of the 

borrower will be determined in accordance with Section 3 of Chapter 5. 

 For projects requesting grant funds. The borrower must comply with 

7 CFR 3560.555(b) and ensure that the difference between the grant amount and the 

TDC will be covered either from the borrower’s own or other resources. This 

variance could be fulfilled in the form of a Section 514 Farm Labor Housing loan. 

3. Setting Loan and Grant Rates and Terms [7 CFR 3560.566] 

For Off-Farm Labor Housing projects, the interest rate is set at 1 percent. The term of 

any loan is 33 years. The term of any grant is for as long as there is a need for the 

housing. 

B. Establishing a Profit Base on Initial Investment Return 

In the case of a limited partnership using tax credits with an equity position, a return 

is permissible in accordance with Paragraph 5.12 A through D. 

12.10 LOAN/GRANT APPROVAL AND CLOSING [7 CFR 3560.571]

Off-Farm Labor Housing loans and grants will be approved and closed in accordance 

with the procedures in Chapters 5 and 8. However, the following additional loan closing 

documents will be required. 

A. Loan Resolution or Loan Agreement 

An organization must have its Board of Directors adopt an Agency-approved loan 

resolution and furnish a certified copy for the loan docket before loan approval. All other 

loan applicants will execute an Agency-approved loan agreement in accordance with 

Chapter 5. 

B. Labor Housing Grant Agreement and Resolution 

A Farm Labor Housing grant agreement, prepared and authorized by the Agency, 

must be dated and executed by the applicant on the date of grant closing. The form of 

resolution to be adopted by the applicant must contain policy and procedural 

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requirements that should be read and be fully understood by the applicant’s Board of 

Directors and officers. Included in the resolution will be provisions authorizing the 

Agency to prescribe requirements regarding the operation of the housing and related 

facilities and other provisions including the following: 

 The rents charged tenants must not exceed such amounts as are approved by the 

Agency after considering the income of the occupants and the necessary costs of 

operation, debt service, and adequate maintenance of the housing; 

 The housing will be maintained at all times in a safe and sanitary condition in 

accordance with standards prescribed by State and local law, and as required by the 

Agency; and 

 In granting occupancy of the housing, an absolute priority will be given at all times to 

domestic farm labor. 

The obligations incurred by the applicant, as a condition of accepting the grant, will 

be in accordance with the Farm Labor Housing grant agreement. 

C. Restrictive-Use Provisions 

All Farm Labor Housing loans made pursuant to a contract entered into on or after the 

effective date of 7 CFR part 3560 are subject to the restrictive-use provisions contained in 

7 CFR 3560.72(a)(2). All other Off-Farm Labor Housing loans are subject to the 

restrictive-use provisions contained in their loan documents and as outlined in Chapter 15 

of HB-3-3560. 

12.11 CONSTRUCTION FINANCING 

The requirements established in 7 CFR 3560.71 apply to all Farm Labor Housing loans 

and grants. In addition, the following requirements apply: 

 Equity contributions being made by a borrower or grantee must be contributed and 

disbursed prior to any disbursement of interim loan funds and any loan or grant funds 

from the Agency; and 

 If the Agency is providing both loan and grant funds, loan funds must be fully 

released and expended prior to the release of grant funds by the Agency. 

Construction financed with the assistance of a Section 516 grant will be subject to the 

provisions of the Davis-Bacon Act (40 U.S.C. 276a – 276a-5 and 276a-7), and the implementing 

regulations published by the U.S. Department of Labor in 29 CFR Parts 1, 3, and 5. 

12.12 MONITORING CONSTRUCTION AND PROJECT LEASE-UP 

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Construction monitoring and project lease-up oversight will be conducted in accordance 

with Chapters 8 and 9. 

12.13 ESTABLISHING DIMINISHED NEEDS FOR FARM LABOR HOUSING

As a basis for Agency approval or disapproval of the borrower’s determination of 

diminished need, the borrower must submit a current analysis of need and demand to the 

Agency, identical to the market analysis that is required of a loan applicants in the loan 

origination process. This market analysis must determine project viability, economic conditions 

and farm worker demographics. The market analysis must determine that, based upon the 

market study, local economic conditions will not significantly improve in the next one to two 

years. The market study should identify any known changes in the local economy. For example, 

if farms were sold to developers to build houses. Market studies or market surveys must identify 

farm worker demographics. Furthermore, the market study or market survey must represent 

eligible tenants for off-farm labor housing properties. According to 7 CFR 3560.577, eligible 

tenants of off-farm labor housing are: citizens of the United States; permanent resident aliens; retired 

or disabled domestic farm laborers from the local market who were domestic farm laborers at the time 

of retirement or became disabled; and other retired and disabled farm laborers. This summary should 

qualify eligible tenants as discussed above within the farm worker demographics sample and 

provide the reference/source of the information. All market studies or market surveys must 

provide a summary of the sample of farm workers used to document the need for off-farm labor 

housing. 

In addition to the above viability determinations and market study or market survey criteria, 

borrowers must also provide the following: 

1. A Form HUD-935.2, stated in part 4 or part 7 efforts to attract eligible tenants of farm 

labor housing according to 7 CFR 3560.577; 

2. Sample marketing or advertisements representing 7 CFR 3560.577 from the most recent 

three years; and 

3. Complete Attachment 4-F of this Handbook, to determine diminished need. 

If (1) and (2) above do not identify efforts to attract eligible farm labor tenants according to 

CFR 3560.577, then (1) or (2) must be updated. Additionally, the borrower must market an 

additional 12 months from the initial diminished need request. After 12 months, an updated (1) 

and (2) should be submitted. 

7 C.F.R. part 3560 section 3560.576(e) allows non-farm laborer tenants to reside in farm 

labor housing if the diminished need for such housing has been determined. If a diminished need 

is determined, units may be made available to (1) very low-income households, low-income 

households and moderate-income households, or (2) persons eligible under the requirements 

established to qualify for housing benefits by sources other than Agencies like HUD and LIHTC, 

as stated in 7 CFR 3560.152(a)(2) and (3). 

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(02-24-05) SPECIAL PN 12-11 

Revised (05-27-09) PN 429 
HB-1-3560 

SECTION 2: ON-FARM LABOR HOUSING LOANS 

12.14 OVERVIEW 

On-Farm Labor Housing projects are designed to increase the supply of affordable 

housing for farmworkers and are specific to the farm where those laborers work. Loans funds 

are provided to farmowners and associations of farmers who wish to provide housing to the 

farmworkers they employ. 

On-farm labor housing is also not restricted by the designated places requirements and 

may be constructed in either urban or rural areas, on or off the farm, so long as the applicant can 

justify the need. Each year the Agency establishes a specific allocation of funding for the 

development of on-farm labor housing. Field Offices are notified of this allocation through 

RD Instruction 1940-L, which is published in the Federal Register. Interested applicants may 

then submit information to their Field Office to determine their likelihood for funding. 

Applications are funded on a first-come, first-served basis from National Office funds. 

12.15 ON-FARM LABOR HOUSING LOAN CHECKLIST 

Applications for on-farm facilities are accepted any time during the year and are funded 

on a first-come, first-served basis, based on the availability of funds. On-farm applications 

should include the following: 

1. Form RD 3560-51 “Multi-Family Housing 

Obligation -Fund Analysis” 

2. SF 424 “Application For Federal 

Assistance” 

3. Form RD 1910-11, “Applicant 

Certification Federal Collection Policies for 

Consumer or Commercial Debts” 

4. Form RD 400-4, “Assurance Agreement” 

5. Form RD 400-1, “Equal Opportunity 

Agreement” 

6. Form RD 400-6, “Compliance Statement” 

7. Appraisal Report 

8. Organizational Documents If Partnership 

Or Corporation 

9. Survey 

10. Form RD 1940-22 “Environmental 

Checklist For Categorical Exclusions” 

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11. FEMA Form 81-93 “Standard Flood 

Hazard Determination” 

12. Information Submitted For LH Loans 

Items A – J 

13. Form RD 3550-1 “Authorization to 

Release Information” 

14. Form AD 1047 “Certification Regarding 

Debarment” 

15. Credit Report 

16. Form RD 1910-5 “Request for 

Verification of Employment” 

17. Form RD 410-7 “Notification to 

Applicant On Use Of Financial Information 

From Financial Institution” 

19. Check Debarment List. Document At 

Receipt Of Application 

20. Form RD 1944-61 “Credit History 

Worksheet” 

21. Form RD 2006-38 “Civil Rights Impact 

Analysis Certification” 

22. Form RD 3560-7A “On Farm LH Project 

Budget” 

23. Labor Housing Management Plan 

24. ADPS – Current/Past Debt Inquiry 

25. Eligibility Documentation 

26. Form AD-622 “Notice Of PreApplication Review Action” 

27. Form RD 440-34 “Option To Purchase 

Real Property Real Property” 

28. Form RD 1924-2 “Description Of 

Materials” 

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Revised (06-21-18) SPECIAL PN 
HB-1-3560 

29. Form RD 1924-1 “Development Plan” (If 

Applicable) 

30. Building Plans 

31. Cost Estimate Or Bid 

32. Document Site Visit 

33. Warning Of Lead Based Paint Hazards 

(Document File) 

34. AMAS Input Data (M1AM, M1AA) 

35. Form 3560-43 “Verification of 

Occupancy of Domestic Farm Laborer” 

36. RD Form 3560-40 “Loan Agreement” 

(Labor Housing Loan to Individual) 

37. Form RD 1922-15 “Administrative 

Appraisal Review for Single Family 

Housing” 

38. Form RD 1927-19/20 “Certification Of 

Attorney Certification of Title Insurance 

Company” 

39. Form RD 1927-4 “Transmittal Of Title 

Information” 

40. Form RD 1927-9 “Preliminary Title 

Opinion” 

41. Form RD 1927-15 “Loan Closing 

Instructions and Statement” 

42. Check Debarment List – Document Prior 

To Loan Closing 

LOAN CLOSING 

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43. Form RD 1927-1 Real Estate Mortgage 

or Deed of Trust for (State)” 

Clauses 

Civil Rights 

Restrictive Use 

Loan Agreement 

44. Form RD 3560-52 “Promissory Note” 

45. Form RD 1927-5 “Affidavit Regarding 

Work Improvement” 

46. Insurance Binder, Receipt For 1 Year 

Fire Insurance Premium 

47. Form RD 1927-10 “Final Title Opinion” 

48. Input Loan Closing (M1F) 

Preconstruction Conference/Final Inspection 

Form RD 400-3 “Notice To Contractors and 

Applicants” 

Form RD 402-1 “Deposit Agreement” 

Form RD 402-2 “Statement Of deposit And 

Withdrawals” 

Form RD 1924-6 “Construction Contract” 

Form RD 1924-9 “Certification Of 

Contractor’s Release” 

Form RD 1924-10 “Release By Claimants” 

Form RD 1924-19 “Builder’s Warranty” 

Termite Inspection Certification 

Plumbing/Water/Sewage Certifications 

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(02-24-05) SPECIAL PN 12-15 

Revised (05-27-09) PN 429 
HB-1-3560 

Electric/Heat/Cooling Certifications 

Submit File To State Office For Post Loan 

Review

In addition to the above, 1-4 unit On-Farm Labor Housing properties must provide a 

Truth in Lending and Real Estate Settlement Procedures Act documents according to HB-1-3550, 

section 3.6 (c). 

12.16 APPLICANT ELIGIBILITY [7 CFR 3560.605]

To be eligible for a Section 514 Farm Labor Housing loan, the applicant must meet the 

same eligibility requirements as Section 515 applicants and the additional requirements 

established under 7 CFR 3560.605 and described below. In addition to the applicant eligibility 

requirements described in Section 3 of Chapter 4, applicants must also meet the following 

requirements to be eligible. 

 The borrower entity must be a farmowner, a family farm partnership, a family farm 

corporation, or an association of farmers whose farming operations demonstrate a 

need for farm labor housing; 

 The borrower entity must be engaged in agricultural or aquacultural farming 

operations and must own the housing and operate it on a nonprofit basis; 

 The borrower entity must intend to use the housing for labor employed in its farming 

operations or the farming operations of its members; 

 The applicant must certify that the farmworkers for whom the housing is intended are 

currently involved in agricultural or aquacultural farming operations; and 

 The applicant must, as determined by the Agency, be unable to provide the necessary 

housing from the applicant’s own resources and be unable to obtain credit from any 

other source upon terms and conditions that the applicant could reasonably be 

expected to fulfill. 

 If the applicant is an association of farmers or family farm corporation or 

partnership, the individual members, individually and jointly, must be unable to 

provide the necessary housing by utilizing their own resources and be unable, by 

pledging their personal liability, to obtain other credit that would enable them to 

provide housing for farmworkers at rental rates they can afford to pay. 

 The individual resources of family farm corporation or partnership members with 

less than a 10 percent corporate or partnership interest should not be considered 

when determining if the applicant can obtain credit elsewhere. 

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The Agency might make an exception to the requirement that an applicant be unable to 

obtain the necessary credit elsewhere [7 CFR 3560.55(a)(2)] when all of the following 

conditions exist: 

 There is a need in the area for housing for migrant farmworkers, and the applicant 

will provide such housing; and 

 There are no qualified State or political subdivisions or public or private nonprofit 

organizations currently available or likely to become available within a reasonable 

period of time who are willing and able to provide the housing. 

12.17 PROJECT ELIGIBILITY [7 CFR 3560.605]

For an application to be eligible to receive a loan under the On-Farm Labor Housing 

program, it must meet specific project eligibility requirements. These requirements are designed 

not only to meet the immediate need of specific farmers to provide housing for their laborers, but 

to ensure that in the event the market shifts or the farmer no longer desires to remain in the 

farming industry, this housing may be used for other eligible populations. The Agency has 

established the following site and design requirements for On-Farm Labor Housing projects: 

 Housing that is being designed for seasonal occupancy, whether single-family or 

multi-family type housing, may be located on the farm as long as it is not located near 

farm service buildings. Seasonal housing may be constructed in accordance with 

Exhibit I of RD Instruction 1924-A. If constructed in accordance with Exhibit I, the 

housing must be suitable to allow for conversion to full-year occupancy if the need 

for migrant farmworkers in the area declines. 

 Single-family type housing is defined as an individual or a group of individual singlefamily detached dwelling units. All sites shall be planned and constructed in 

accordance with RD Instruction 1924-C. 

 On-Farm Labor Housing sites must provide access to road frontage, when feasible. 

 Manufactured housing is not required to meet the contiguous lot requirement 

established in 7 CFR 3560.70. Manufactured housing may be proposed as a single 

unit. 

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(02-24-05) SPECIAL PN 12-17 

Revised (05-27-09) PN 429 
HB-1-3560 

On-farm labor housing that consists of buildings with less than three units is not subject 

to the requirement that 5 percent of the units be constructed as fully accessible units, as 

described in 7 CFR 3560.60(d). This does not, however, eliminate any other accessibility 

requirements. 

12.18 LOAN FUND USES 

A. Eligible Uses of Funds [7 CFR 3560.603]

In addition to the eligible uses of loan funds listed in Attachment 4-B, loan funds 

may also be used to provide facilities for seasonal or temporary use with appropriate 

furnishings and equipment. 

B. Prohibited Uses of Funds [7 CFR 3560.604]

Loan funds may not be used for any purpose prohibited by 7 CFR 3560.554. These 

are the same prohibitions that apply to Section 515 loans, except that Section 514 funds 

may be used to finance the development of housing to serve primarily temporary and 

transient residents (see Attachment 4-C). 

For On-Farm Labor Housing projects, loan funds may not be used to provide housing 

for the applicant or members of the immediate family of the applicant when the applicant 

is an individual farmowner, family farm corporation or partnership, or an association of 

farmers. Immediate family in this instance includes mother, father, brothers, sisters, sons, 

and daughters of applicant(s) and spouse. 

12.19 PRIORITIES FOR FUNDING 

There are no priorities for funding for On-Farm Labor Housing applications. 

Applications are funded on a first-come, first-served basis. 

12.20 SUBMISSION AND PROCESSING OF INITIAL APPLICATIONS 

For the On-Farm Labor Housing program, the submission and processing of initial 

applications should be performed in accordance with Chapter 4. There are several areas where 

additional information should be considered prior to requesting the submission of a final 

application for processing. 

A. Project Eligibility 

When reviewing initial applications for project eligibility, Loan Originators must 

address the following considerations: 

 The proposed project does not have to be located in a rural location or meet the 

designated places criteria; 

 The applicant adequately provided for interior and exterior washing facilities in the 

project budget; and 

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 HB-1-3560 

 The applicant adequately addressed whether the project will be used year round or 

seasonally and to what standards the housing will be built. 

B. Applicant Eligibility 

When determining applicant eligibility, the Loan Originator must consider the 

following items. 

 The applicant must qualify as an eligible entity as outlined in Paragraph 12.3. 

 If applicants are also requesting a waiver of the “necessary credit elsewhere test” 

[7 CFR 3560.55(a)(2)], proper documentation must be provided. The interest rate of 

such loans is in accordance with 7 CFR part 1810, subpart A (RD Instruction 440.1). 

C. Project Feasibility 

The applicant must demonstrate a need for on-farm labor housing in the market 

area. This can be done by documenting their employees’ need for housing. 

D. Financial Capacity 

The 7 CFR 3560.55(a)(3) states that applicants must possess the legal and financial capacity to 

carry out the obligations required for the loan or grant. Therefore, the Multi-Family Housing Processing 

Division has created a methodology to determine an applicants financial capacity. The Multi-Family 

Processing Division created an On-farm Labor Housing Worksheet to determine an applicant’s financial 

capacity. The On-farm Labor Housing Worksheet must be completed using the most recent financial 

statements, and made apart of the loan file. 

Upon completing the On-farm Labor Housing Worksheet, multiply line 19 by the Present 

Value of an Ordinary Annuity (PVA) to determine the borrower’s financial capacity. The PVA formula 

is: 

PVA = 1-1/(1-i/ i)n 

 i 

I= interest rate 

N=years 

Applicants who are determined eligible according to 7 CFR 3560.605(a) are to multiply line 19 of the 

On-farm Labor Housing by 27.9902. Applicants who are determined eligible according to 7 3560.605(b) must 

calculate the PVA using the above formula at the interest rate determined in accordance with 7 CFR part 1810. 

___________________________________________________________________________________________________ 

(02-24-05) SPECIAL PN 12-19 

Revised (05-27-09) PN 429 
HB-1-3560 

Repeat the above steps using the prior year’s financial statements. Then take the average of the PVA of 

the two years to determine the maximum financial capacity of an on-farm borrower. 

12.21 SUBMISSION AND PROCESSING OF FINAL APPLICATIONS 

Loan Originators should follow the processing procedures outlined in Chapter 5, for OnFarm Labor Housing projects. Some key exceptions to consider in processing the final loan 

applications follow: 

A. Determining Loan Limits, Rates, and Terms [7 CFR 3560.612 and 616]

1. Maximum Loan Amount 

The amount of the loan may not exceed 100 percent of the allowable TDC of on-farm 

labor housing as described in Paragraph 12.16 or the value of the security for the loan as 

determined by an appraisal, less the unpaid principal balance, plus past due interest of 

any prior liens that will or will likely exist against the security after the loan is closed. 

2. Determining the Security Value of the Loan 

The security value of the loan will be determined in accordance with Section 3 of 

Chapter 5. 

3. Setting Loan Rates and Terms 

For On-Farm Labor Housing projects, the effective interest rate will be 1 percent, 

except for those borrowers determined eligible under 7 CFR 3560.67. In the latter 

situation, the interest rate will be calculated in accordance with RD Instruction 440.1. 

The amortization period for each loan will be scheduled on an annual basis, but the 

maximum term for the On-Farm Labor Housing loan will not exceed 33 years. 

B. Establishing a Profit Base on Initial Investment Return 

For On-Farm Labor Housing loans, no profit base will be permitted as a return on a 

borrower’s investment. All on-farm labor housing must be operated in a nonprofit 

manner with no return to the borrower. 

12.22 LOAN APPROVAL AND CLOSING [7 CFR 3560.621]

Loans will be closed in accordance with Chapters 5 and 8. However, for On-Farm Labor 

Housing loans, the following additional loan closing documents are required: 

A. Loan Resolution or Loan Agreement [7 CFR 3560.571]

The organization must have its Board of Directors adopt an Agency-approved loan 

resolution and furnish a certified copy for the loan docket before loan approval. All other 

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 HB-1-3560 

loan applicants will execute an Agency-approved loan agreement in accordance with 

Chapter 5. 

B. Security Documents [7 CFR 3560.610]

Loan Originators must confirm that the following documents have been properly 

prepared for the project: 

 When feasible, the On-Farm Labor Housing will be located on a tract of land that is 

surveyed such that, for security purposes, it is considered separate and distinct from 

the farm. The security for the loan must have adequate value to protect the Federal 

Government’s interest. The Agency will seek a first or parity lien position on 

Agency-financed property in all instances, however, the Agency may accept a junior 

lien position if the Federal Government’s interests are adequately secured. 

 If necessary to provide adequate security for the loan, the Agency may require that 

any household furnishings purchased with loan funds also be secured. 

 Personal liability will be required of the members of an association of farmers. 

C. Title Companies and Closing Attorneys 

To allow the Agency the ability to minimize potential fraud, waste, abuse, kick 

backs, referral fees and equity skimming; all closing instructions must inform closing 

agents/attorneys to indicate the recipient of section 514 loans and section 516 grants. This 

information must be stated on the HUD 1 “Settlement Statement”. The above instructions 

must be stated on Form RD 3550-25 section Other. 

If all information cannot be stated on Form 3550-25, an Attachment may be added 

and indicate on Form RD 3550-25: "See Attachment A or B”.

12.23 CONSTRUCTION MONITORING 

Construction monitoring oversight will be conducted in accordance with Chapter 9. 

12.24 CONTRUCTION COST NORMS 

Construction cost norms must be calculated by using RSMeans or Marshall and Swift 

construction cost guides. The RSMeans and Marshall and Swift guides are updated annually and 

contain modifiers to make the cost applicable in any locality. Construction cost can not exceed 

the construction cost norms established by RSMeans or Marshall and Swift. Additionally, the 

above calculation must be done by the State Architect or by the State Architect in the 

neighboring State Office near the property. 

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(02-24-05) SPECIAL PN 12-21 

Revised (05-27-09) PN 429 
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ATTACHMENT 12-A 

CLARIFYING THE DEFINITION OF “FARM LABOR” 

Background 

The purpose of the Rural Housing Service's (RHS) Farm Labor Housing (FLH) program is to 

provide decent, safe, and sanitary housing for “domestic farm laborers.” The Housing Act of 

1949, which authorizes the FLH program, provides the following definition of a domestic farm 

laborer: 

“...any person (and the family of such person) who receives a substantial portion of 

his or her income from primary production of agricultural or aquacultural 

commodities or the handling of such commodities in the unprocessed stage, without 

respect to the source of employment, except that (A) such person shall be a citizen of the 

United States or a person legally admitted for permanent residence; (B) such term 

includes any person (and the family of such person) who is retired or disabled, but who 

was domestic farm labor at the time of retirement or becoming disabled;...” 

Section 514(f) (3) of the Housing Act of 1949 (42 U.S.C. 1484(f) (3)) was amended on June 18, 

2008 to expand the definition of domestic farm labor to include processing workers by deleting 

“or the handling of such commodities in the unprocessed stage”, and replacing it with “or the 

handling of agricultural or aquacultural commodities in the unprocessed stage, or the processing 

of agricultural or aquacultural commodities”. The definition now reads: 

“...any person (and the family of such person) who receives a substantial portion of 

his or her income from primary production of agricultural or aquacultural commodities or 

the handling of agricultural or aquacultural commodities in the unprocessed stage, or the 

processing of agricultural or aquacultural commodities , without respect to the source of 

employment, except that (A) such person shall be a citizen of the United States or a 

person legally admitted for permanent residence; (B) such term includes any person (and 

the family of such person) who is retired or disabled, but who was domestic farm labor at 

the time of retirement or becoming disabled;...” 

This statutory definition requires that one of two requirements be met concerning farm income. 

Farm laborers must receive a substantial portion (refer to Attachment 6-H) of their income from 

either the “primary production of agricultural or aquacultural commodities” or from “the 

handling of agricultural or aquacultural commodities in the unprocessed stage, or the processing 

of agricultural or aquacultural commodities.” Further guidance is provided by 7 CFR 3560.11. 

It defines “farm labor” as follows: 

“Farm labor. Services in connection with cultivating the soil, raising or harvesting any 

agriculture or aquaculture commodity; or in catching, netting, handling, planting, drying, 

packing, grading, storing, or preserving in the unprocessed stage, without respect to the 

source of employment (but not self-employed), any agriculture or aquaculture commodity; 

or delivering to storage, market, or a carrier for transportation to market or to processing 

any agricultural or aqua cultural commodity in its unprocessed stage.” 

Attachment 12-A 

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The definition of “farm labor” contains the following three components and all three must be 

met for the activities to be considered as farm labor: All of the components of the definition 

focus on the nature of the work being done. 

1st Component: “Services in connection with...” 

2nd Component: One of four specific classes of work: 

a. the “cultivating the soil, raising or harvesting”; or 

b. the “catching, netting, handling, planting, drying, packing, grading, storing, or 

preserving its unmanufactured state”; or in; 

c. the “delivering to storage, market, or day hauling the product for market, 

processing or distribution” 

d. the “working with the product in a processing facility until it is shipped for 

distribution”. 

3rd Component: “Any agricultural or aquacultural commodity.” 

There is no restriction on who employs the farm laborer. It also needs to be emphasized that the 

definition does not restrict farm labor to work done on a farm. Paragraphs 2.b, 2.c and 2.d. 

expand the definition to include working with the product in other off farm locations including, 

(1) in a processing facility, and (2) in handling and day hauling the commodity in an 

unmanufactured or manufactured state to be marketed, processed or distributed. Day hauling is 

the hauling of the agricultural or aquacultural commodity from the site of eligible activity to the 

site of eligible or ineligible activity within standard work hours. 

Thus, a farm laborer may be working for a farmer, a farm labor contractor, a custom agricultural 

service provider, or a large vertically integrated corporation, etc. The nature of the worker’s job 

is what defines “farm laborer” and not necessarily the nature of the employer. 

A good way to understand the definition is to bear in mind the sequence of farming activities in 

an agriculture enterprise. Fundamentally, it consists of five stages: 

Stage 1: The raising of the agricultural or aquacultural commodity on the farm; 

Stage 2: The transportation of the agricultural or aquacultural commodity after harvest; 

Stage 3: The post-harvest handling, storage, processing and packaging of the agricultural 

 or aquacultural commodity; 

Stage 4: The delivery to market; and, finally, 

Stage 5: The market itself – which may either, be a wholesale or retail market (if the 

 commodity is a fresh market commodity) or a food processing manufacturer (if 

 the commodity is a processing commodity). 

Exhibit A identifies the presence of farm labor in five stages of an agricultural enterprise . 

Attachment 12-A 

2 of 9 

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Distinction - Post-Harvest Handling vs. Processing – Stage 3

While both are eligible activities, to distinguish between post-harvest handling and processing, it 

is often helpful to consider the condition that the commodity is in when the laborer does his or 

her work. 

An agricultural or aquacultural commodity in an “unmanufactured state” is essentially raw 

produce in its natural state – still “the way that nature made it.” Implicit in paragraph 2.b. is that 

a commodity can remain in this unmanufactured state even though it has been handled, dried, 

graded, packed, stored, and preserved. This is because all of these activities do not necessarily 

change the fundamental nature of the commodity. 

Thus, activities of the following three types are included in farm labor as post harvest handling: 

1. Sorting produce and placing it in containers. When it is harvested and transported 

from the field, a commodity must be containerized in some fashion. Frequently, 

commodities go through several sequential stages of sorting, grading, and 

packing. However, the mere fact that a commodity is in a particular container or 

package does not change the nature of the commodity itself. Produce in a bag, 

tray, basket, bunch, box, bin, or wrap is still unmanufactured. 

2. Handling to preserve the commodity. Actions such as cleaning, washing, and 

waxing fruits and vegetables; drying grain or prunes for safe storage; and holding 

produce in control atmosphere storage – all are examples of services that do not 

change the essentially unmanufactured state of the commodity. They merely 

allow the commodity to be stored safely and preserved. 

3. Handling to extract the commodity, without acting on the commodity itself. 

Actions such as removing the hull from almonds and walnuts, or the tops from 

carrots are examples. In these cases, extraneous parts of the commodity are 

removed, but the commodity itself is unchanged and unmanufactured. 

The “processing” of an agricultural or aquacultural commodity means acting on the commodity 

itself, usually with tools, so as to change the fundamental nature of the commodity from that 

which it had when it was taken from the farm. Examples of processing activities include: 

crushing, cutting, chopping, dicing, slicing, pitting, blending, pureeing, juicing, drying, 

dehydrating, freeze-drying, expressing, flavoring, heating, freezing, cooking, steaming, roasting, 

slaughtering, butchering, pasteurizing, and churning. Thus, canneries, wineries, slaughterhouses, 

creameries, frozen food plants, salad mix plants, and other such food processing plants act on the 

raw commodity itself and therefore, employees of such are to be considered “food processing 

workers”. 

Other Distinctions 

Attachment 12-A 

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Another distinction is that “farm labor” ceases once the commodity is day hauled “to market or 

the distributor.” Thus, the distributor’s intake’ shipping gate is where farm labor ends. Farm 

labor is also involved in wholesaling packaging but not retail packaging. If the market 

destination of a commodity is a produce wholesaler’s warehouse or a retail grocery store’s 

produce department, then this is the point where non-farm labor takes over. 

However, when dealing with vertically-integrated farm operations (where the same farm raises, 

harvests, handles, stores, and then processes and/or markets the crop), it may be necessary to 

determine the specific job an employee does. Many times, one employee within a company or 

facility may be classified under the definition as a “farm laborer” and another employee working 

in the same facility is not. These employees, who may work on a farm operation and whom do 

not perform “farm labor activities”, are not eligible. For example, a custodian who sweeps the 

floor of a packing house, or a bookkeeper who performs accounting duties in the farm office, 

would not be defined as a farm laborer, whereas as their coworkers, who sort, clean, pack, or 

load the commodity would. On the other hand, laborers providing services for nonverticallyintergrated farm operations (i.e. installing sprinklers) are eligible if employed by the farm 

operation. 

In all cases, the trucker who day hauls the agricultural or aquaculture commodity from the site of 

the eligible activity to the site of the ineligible activity is considered to be engaged in farm labor. 

However, the trucker who day hauls the product for market or distribution must work for the 

processing manufacture to be eligible. 

There are, of course, a number of other FLH eligibility factors besides the mere involvement of a 

worker in “farm labor.” For example, applicants for On-Farm Labor Housing, for processing 

worker housing, must meet the eligibility criteria according to the 7 CFR part 3560, subpart L 

section 3560.605. Other eligibility factors are covered in detail in 7 CFR part 3560, subparts L 

and M. 

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Attachment 12-A 

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 HB-1-3560 

Exhibit A 

Presence of “farm labor” in stages of the agricultural economy 

Stage 1. Raising the commodity on the farm. 

Eligible activities include: 

Field workers – hand work, field preparation, planting, irrigating, weeding, spraying, 

thinning, picking, pruning, loading, flagman, livestock caretakers, milkers 

Agricultural equipment operators – tractors, sprayers (including aerial sprays), harvesters, 

combines 

Professional crop services – agronomists, veterinarians, pest advisors, orchard managers 

Ineligible activities include: 

Support activities – mechanics, chemical handlers, bookkeepers, farm labor contractors 

Agricultural suppliers – seed, chemical, equipment, and supply dealers 

Professional support services – bookkeepers, attorneys, financial consultants 

Stage 2. Transporting the commodity after harvest. 

Eligible activities include: 

Harvester/combine operators 

Truck drivers 

Loading and unloading commodities prior to processing 

Ineligible activities include: 

Fuel dealers 

Truck mechanics 

Truck dispatchers 

Stage 3. Post-harvest handling, storage, processing and packaging. 

Eligible activities include: 

Boxing, crating, loading and unloading produce, hulling nuts, drying grain 

Working in a post-harvest commodity storage facility 

Ineligible activities include: 

Handling which constitutes marketing 

Stage 4. Delivery to market or processing. 

Eligible activities include: 

Truck drivers, loading and unloading commodities prior to processing 

Trucking processed agricultural products (when employed by Processing Plant) 

Ineligible activities include: 

Fuel dealers 

Off-farm truck mechanics 

Truck dispatchers 

Attachment 12-A 

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Stage 5. Processing or marketing. 

Eligible activities include: 

Processing plant workers – canneries, salad mix, creameries, frozen foods, dried fruit, 

slaughterhouse 

Ineligible activities include: 

Grocery store workers – produce department Restaurant workers Auction yard workers 

produce wholesalers and wholesale warehouse workers. 

Attachment 12-A 

6 of 9 

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 HB-1-3560 

Exhibit B 

Presence of “farm labor” and “processing worker” in selected agricultural enterprises 

Enterprise Farm Worker Activities Processing Worker 

Activities 

Aquaculture Seeding, care, management, or harvest of 

fish, shellfish, & other aquatic organisms 

Seafood /Wholesalers 

Packing 

 

Bees Hive care and management Confection manufacturing 

 Honey extraction 

Berries Field work and harvest, including field 

pack 

Produce wholesalers 

Packing 

 Sorting, packing, and storage Juicing 

Cattle Herd management 

 Feedlot Slaughterhouse 

Cotton Field work and harvest Ginning 

 Pre-gin storage 

Dairy Milking barn Creamery 

 Herd care and management Cheese production 

Eggs Layer flock management Egg yolk separation 

 Egg sorting, grading, and packing 

Fruit trees – avocados, Grove operations and harvest Guacamole production 

dates Sorting, packing, and storage 

Fruit trees – citrus Grove operations and harvest Juicing 

 Sorting, packing, and storage Canning 

Fruit trees – figs Orchard operations and harvest Fig confections 

 Sorting, packing, drying and storage 

Fruit trees – olives Orchard operations and harvest Brine operations 

 Sorting, packing, and storage Cannery operations 

Fruit trees – apples, 

kiwis, peaches, pears, and 

plums 

Orchard operations and harvest 

Sorting, packing, and storage 

Cannery operations 

Freezer operations 

Drying operations 

Fruit trees – prunes (dried 

plums) 

Orchard operations and harvest 

Sorting, packing, drying and storage 

Re-hydrating and 

processing 

Cannery operations 

Garlic Field work and harvest 

Sorting, packing, and storage 

Wholesale produce 

operation and Packing 

 Drying & dehydrating 

operations 

Grain – barley, corn, oats, 

rice, wheat 

Field work and harvest 

Grain drying and bulk storage 

Milling 

Grapes – raisins Vineyard work, including field dry & 

pack 

Re-hydrating and 

processing 

 Sorting, packing, and storage Cannery operations 

Attachment 12-A 

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Grapes – table Vineyard work and harvest 

Boxing grapes 

Wholesale produce 

operation packing 

 

Grapes – wine Vineyard work and harvest Grape crushing and 

fermenting 

Hay Hay production and harvest Hay baling, 

stacking, and storage Silage production 

by farmer 

Hay compressor or 

pelletizer operation Feed 

mix preparation Hay broker 

Feed store 

Melons Field work and harvest, including field 

pack 

Wholesale produce 

operations packing 

 Sorting, packing, and storage 

Nurseries Field and greenhouse work Sorting and packing for 

shipment 

 Sorting and packing for shipment 

Nut trees – almonds, Orchard operations and harvest Shelling 

Walnuts Hulling Expressing oils 

 Roasting and making nut 

products 

Oilseeds Field work and harvest Oil expresser operations 

 Storage in bulk 

Potatoes Field work and harvest Potato chipping 

 Storage in bulk in cellars 

 Packing and bagging at potato shed 

Poultry Poultry production Hatcheries/Slaughterhouse/

Processing 

 Plant 

Seed production Field work and harvest Seed certification 

 Sorting, packing, and storage 

Sheep Flock management Auction yard 

 Shearing and wool storage Slaughterhouse 

 Yarn production 

Sugar beets Field work and harvest Sugar refineries 

Vegetables for fresh 

market (artichokes, 

asparagus, broccoli, 

carrots, cauliflower, 

celery, lettuce, greens, 

mushrooms, onions, 

Peppers, tomatoes) 

Field work and harvest, including field 

pack 

Sorting, packing, and storage 

Produce wholesalers 

Salad mix operations 

Attachment 12-A 

8 of 9 
 HB-1-3560 

Vegetables for processing 

(artichokes, asparagus, 

broccoli, carrots, 

cauliflower, celery, 

greens, mushrooms, 

onions, peppers, 

tomatoes) 

Field work and harvest, including field 

pack 

Cannery operations 

Freezer operations 

Drying operations 

Attachment 12-A 

9 of 9 

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