Farmers Bank v. United States Department of Agriculture

RILEY, Circuit Judge.

The Farmers Bank of Hamburg, Arkansas (Bank) appeals the district court’s order affirming the decision of the Rural Business-Cooperative Service (the Agency) 2 denying the Bank’s loss claim for loans guaranteed by the Agency. We affirm in part and reverse in part.

1. BACKGROUND

In 1998 and 1999, the Hermitage Tomato Co-operative Association (Co-op), a eo-operative of tomato growers, obtained nine loans totaling $9,604,860 from the Bank. The Agency guaranteed the loans up to 90% of their value. The Bank closed the loans in three separate phases, each phase consisting of…