(a) The Agency conducts an analysis at its discretion or if the borrower:

(1) Is being considered for a new direct loan or subordination;

(2) Is financially distressed or delinquent;

(3) Has a loan deferred, excluding deferral of an installment under subpart B of part 766; or

(4) Is receiving a limited resource interest rate on any loan, in which case the review will be completed at least every 2 years.

(b) The analysis must include a review of the previous production cycle's actual income, expense, and production performance, as well as a farm operating plan for the new operating cycle.