(1) Any person may apply for a loan to finance rangeland improvements to be constructed, developed, and operated in Montana who:
(a) is a resident of Montana;
(b) is engaged in farming or ranching; and
(c) possesses the necessary expertise to make a rangeland loan practical.
(2) All loans must be for rangeland improvement or development exclusively.
(3) An application for a loan must be in the form prescribed by the department and accompanied by a resource conservation plan, which may be prepared in consultation with the United States natural resources conservation service.