Federal · Title 7 — Agriculture
7 U.S.C. § 1308: Notification of interests; payments limited to active farmers
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the name and social security number of each person, or the name and taxpayer identification number of each legal entity, that holds or acquires an ownership interest in the separate person or legal entity; and the name and taxpayer identification number of each legal entity in which the person or legal entity holds an ownership interest. To be eligible to receive a payment described in subsection (b) or (c) of section 1308 of this title , a person or legal entity shall be actively engaged in farming with respect to a farming operation as provided in this subsection or subsection (c). capital, equipment, or land; and personal labor or active personal management; the person’s share of the profits or losses from the farming operation is commensurate with the contributions of the person to the farming operation; and the contributions of the person are at risk; the legal entity separately makes a significant contribution (based on the total value of the farming operation) of capital, equipment, or land; the stockholders or members collectively make a significant contribution of personal labor or active personal management to the operation; and the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity; if a legal entity that is a qualified pass-through entity or a similar entity, as determined by the Secretary, separately makes a significant contribution (based on the total value of the farming operation involved) of capital, equipment, or land, and the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management shall be considered to be actively engaged in farming with respect to the farming operation involved; and in making determinations under this subsection regarding equipment and personal labor, the Secretary shall take into consideration the equipment and personal labor normally and customarily provided by farm operators in the area involved to produce program crops. the landowner receives rent or income for the use of the land based on the production on the land or the operating results of the operation; and the person or legal entity meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A). makes a significant contribution, based on the total value of the farming operation, of active personal management or personal labor; and with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A). A sharecropper who makes a significant contribution of personal labor to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if the contribution meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A). In determining whether a person or legal entity growing hybrid seed under contract shall be considered to be actively engaged in farming, the Secretary shall not take into consideration the existence of a hybrid seed contract. A person or legal entity receiving custom farming services shall be considered separately eligible for payment limitation purposes if the person or legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection. No other rules with respect to custom farming shall apply. If 1 spouse (or estate of a deceased spouse) is determined to be actively engaged, the other spouse shall be determined to have met the requirements of subsection (b)(2)(A)(i)(II). A landlord contributing land to a farming operation shall not be considered to be actively engaged in farming with respect to the farming operation if the landlord receives cash rent, or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land. Any other person or legal entity that the Secretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation. to define the term ‘significant contribution of active personal management’ for purposes of section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 ); and if the Secretary determines it is appropriate, to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when a significant contribution of active personal management is the basis used to meet the requirement of being actively engaged in farming under section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 ) by an individual or entity. the size, nature, and management requirements of each type of farming operation; the changing nature of active personal management due to advancements of farming operations; and the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation. The Secretary shall not apply the regulations promulgated pursuant to subsection (a) to individuals or entities comprised solely of family members (as that term is defined in section 1001(a)(2) of the Food Security Act of 1985 ( 7 U.S.C. 1308(a)(2) )). The regulations promulgated pursuant to subsection (a) shall include a plan for monitoring the status of compliance reviews for whether a person or entity is in compliance with the regulations. In order to conserve Federal resources and prevent unnecessary paperwork burdens, the Secretary shall ensure that any additional paperwork required as a result of the regulations promulgated pursuant to subsection (a) be limited to those persons who are subject to such regulations. Nothing in this section may be construed to authorize the Secretary to alter, directly or indirectly, existing regulations for other requirements in section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 ). The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 2015 crop year.”
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