USDA
Removes Farm Program Payments to Managers Not Actively Engaged in
Farming
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[December 22, 2015]
USDA finalized a rule to ensure that
farm safety-net payments are issued only to active managers of farms
that operate as joint ventures or general partnerships, consistent
with the direction and authority provide by Congress in the 2014
Farm Bill.
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The action, which exempts family farm operations, closes a
loophole where individuals who were not actively part of farm
management still received payments.
Since 1987, the broad definition of “actively engaged” resulted
in some general partnerships and joint ventures adding managers
to the farming operation, qualifying for more payments, that did
not substantially contribute to management. The rule applies to
operations seeking more than one farm manager, and requires
measureable, documented hours and key management activities each
year. Some operations of certain sizes and complexity may be
allowed up to three qualifying managers under limited
conditions. The changes apply to payments for 2016 and
subsequent crop years for Agriculture Risk Coverage (ARC) and
Price Loss Coverage (PLC) Programs, Loan Deficiency Payments
(LDP) and Marketing Loan Gains (MLG) realized via the Marketing
Assistance Loan program.
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As required by Congress, the new rule does not apply to family
farms, or change regulations related to contributions of land,
capital, equipment, or labor. The changes go into effect for the
2016 crop year for most farms. Farms that have already planted fall
crops for 2016 have until the 2017 crop year to comply. For more
details, producers are encouraged to consult their local Farm
Service Agency office.
[USDA Farm Service Agency] |