Any payments received from USDA are subject to producer eligibility as well as limited to a payment limitation provisions. On an annual basis, producers are required to report changes to their farming operation. All payments provided by the FSA are limited according to the program it is paid under. The chart at the bottom of this article shows the payment limitations.
When the producer(s) requesting payments, request them through an entity, such as corporations, limited partnerships, trust, estates, they must provide the Farm Service Agency with all of the individuals names, addresses, and ID numbers for each member. All forms submitted are subject to spot check through the end of the year review process.
Producers requesting payments must be actively engaged in farming, contributions can be but are not limited to, contributing land, labor, capital, and equipment. If you are cash-renting farms you must, meaning if you rent agricultural land from another producer for cash, a guaranteed crop share, then in order to be eligible to receive payments you must make either of the following:
1) a significant contribution of active personal labor to the farming operation, or
2) a significant contribution of BOTH active personal management and equipment.
All producers must also certify their Average Adjusted Gross Income (AGI). In order to receive benefits for the 2009-2012 crop years. The three AGI limitations are:
1) if the AGI non-farm income exceeds $500,000 then the person/legal entity is ineligible for commodity, price support and disaster assistance program benefits.
2) If the AGI for farm income exceeds $750,000 then the person/legal entity is ineligible for Direct DCP payments.
3) If the AGI non-farm income exceeds $1 million dollars then the person/legal entity is ineligible for conservation program benefits unless 66.66 percent or more of the average AGI is derived from farming activities.
Program Payment Limitation
Direct Payments/ $40,000
Counter Cyclical/ $65,000
Conservation Reserve Program (CRP)/ $50,000
Noninsured Crop Disaster Assist. Prog./ $100,000
Price Support, Marketing Loans/ No Limit
That’s all for now,