(1) Any person participating in the U.S. conservation reserve payment program may apply and be eligible for a loan under the state CRP program except that the board may exclude participation for any of the following reasons:

(a) a person is

(i) a debtor in any case under Title 11 of the United States Code; or

(ii) a debtor liquidating or operating under a plan of confirmed pursuant to chapter 11, 12 or 13 of Title 11 of the United States Code;

(b) a person is in default under the CRP contract;

(c) a person has taxes, special assessments or other governmental charges now due and unpaid upon the CRP acres;

(d) a person has assigned, or agreed to assign, to any person any interest in the CRP contract;

(e) a person's CRP acres or other assets are subject to any lien on which proceedings for foreclosure or other enforcement action has been initiated; and

(f) a person is aware of any delinquency or other fact or circumstance which might cause the lienholder to initiate a foreclosure or other enforcement action on any lien.