(1) A state CRP loan recipient may use loan proceeds for an agricultural enterprise project, including, but not limited to:

(a) refinancing of existing indebtedness incurred in the acquisition of a farm or ranch or for the improvements thereto;

(b) acquisition of agricultural equipment or agricultural machinery, or for the refinancing of existing indebtedness incurred for such acquisition;

(c) acquisition of real property used for agricultural purposes only;

(d) working capital for operation of a farm or ranch; or

(e) for any combination of (a) through (d) above.

(2) A CRP loan recipient may not use loan proceeds for any project which does not qualify as an agricultural enterprise project.