Payment Eligibility and
Payment Limitations
Farm Service Agency
Overview
Congress and the USDA have established requirements
to ensure that farm program payments only go to
farmers who are “actively engaged in farming”. The
2018 Farm Bill extends the payment eligibility and
payment limitation requirements for the 2019 through
the 2023 program years.
Actively Engaged in Farming
To be considered as “actively engaged in farming,” a
person or legal entity (partnerships, corporations, and
so forth), must provide significant contributions to the
farming operation. Contributions include capital, land,
and/or equipment, and active personal labor and/or
active personal management. The active personal
management contribution must be critical to the
profitability of the farming operation. All contributions
to the farming operation must be at risk of loss.
Who is Eligible
Each partner, stockholder or member with an
ownership interest must on a regular basis contribute
active personal labor and/or active personal
management to the farming operation. The
contribution must be identifiable and documentable,
and separate and distinct from the contributions made
by any other partner, stockholder or member. If any
partner, stockholder or member with an ownership
interest fails to meet this requirement, program
payments will be reduced by the corresponding share
held by that partner, stockholder or member.
1
FACT SHEET
May 2019
Additional Payment Eligibility
Provisions for Joint Operations and
Legal Entities Comprised of
Non-Family Members or Partners,
Stockholders or Persons with an
Ownership Interest in the Farming
Operation
General partnerships and joint ventures comprised of
non-family members must document the actions of the
members who make significant contributions of
management to the farming operation; defined as 500
hours of specific management activities per year, or 25
percent of the total management time necessary for the
success of the farming operation. Most farming
operations conducted by general partnerships and joint
ventures with non-family members will be limited to
only one member who can meet “actively engaged in
farming” requirements and qualify for payments based
solely on the documented contribution of active
personal management. Operations that can
demonstrate that they are large or complex farming
operations, according to newly established standards,
may be allowed an additional manager. Similarly, an
operation that can demonstrate that it is a large and
complex farming operation may qualify a third
manager for payment, but only if all three managers
can document substantial management contributions to
the operation.
The 2018 Farm Bill expands the definition of family
member to include a first cousin, niece and nephew.
The addition of first cousin, niece and nephew to the
definition applies to all payment eligibility
determinations, where applicable, effective beginning
with the 2019 program year.
How it Works
Exceptions to the General Requirements
A person or legal entity that is also a landowner is
considered “actively engaged in farming” if the person
or legal entity landowner contributes the land to a
farming operation and in return, receives rent or
income for the use of the land. The landowner’s share
of the profits or losses from the farming operation
must also be commensurate with the landowner’s
contributions to the farming operation; the
contributions must be at risk of loss.
If one spouse has been determined to be “actively
engaged in farming,” the other spouse will also be
viewed as having met the significant contribution of
active personal labor or active personal management in
that same farming operation and toward meeting the
requirements of “actively engaged in farming.”
Sharecroppers may be considered “actively engaged in
farming” if the sharecropper makes a significant
contribution of active personal labor to the farming
operation and in return receives a specified share of
the crop or crops produced on the farm. The
sharecropper’s share of the profits or losses from the
farming operation must be commensurate with the
sharecropper’s contributions; the contributions must be
at risk of loss.
A cash-rent tenant is ineligible to receive payments on
cash-rented land unless the tenant makes a significant
contribution of active personal labor. If the cash-rent
tenant does not provide labor, he or she must make a
significant contribution of both active personal
management and equipment to the farming operation.
All other “actively engaged in farming” requirements
apply as well.
Foreign Persons
Foreign persons, other than registered aliens, are not
eligible to receive certain program benefits under some
programs such as the Agriculture Risk Coverage and
Price Loss Coverage programs and other specific
programs, unless the person provides a significant
contribution of capital, land and active personal labor
to the farming operation. Under some other programs
(such as the Supplemental Disaster Assistance
Programs, the Market Facilitation Program, or others)
foreign persons are excluded from program eligibility
altogether regardless of contributions to a farming
operation.
Notification Requirements
Every legal entity earning payment must report to their
local FSA committee the name and social security
number of each person who owns, either directly or
indirectly, any interest in that legal entity. The legal
entity is also required to inform all members of the
rules regarding payment eligibility and payment
limitation.
Direct Attribution
The 2018 Farm Bill establishes a maximum dollar
amount for each program that can be received
annually, directly or indirectly, by each person or legal
entity. Such limitations on payments are controlled by
direct attribution. Program payments made directly or
indirectly to a person are combined with the pro rata
interest held in any legal entity that received payment,
unless the payments to the legal entity have been
reduced by the pro rata share of the person.
Program payments made directly to a legal entity are
attributed to those persons that have a direct and
indirect interest in the legal entity, unless the payments
to the legal entity have been reduced by the pro rata
share of the person. Payment attribution to a legal
entity is tracked through four levels of ownership. If
any part to the ownership interest at the fourth level is
owned by another legal entity, a reduction in payment
will be applied to the payment entity in the amount
that represents the indirect interest of the fourth level
entity in the payment entity.
Common Attribution
Common attribution means crediting payments made
to a person or legal entity collectively to one limitation
due to a unique or specific relationship between the
persons or legal entities. Common attribution applies
to a minor child and a parent or legal guardian; and a
parent organization over a secondary organization
when the parent organization exercises control over the
secondary organization.
Ownership Interest for Direct Attribution
For the purposes of the direct attribution of payments,
ownership interest that a person or legal entity holds in
a legal entity on June 1 of the current year is used.
Direct attribution of payments is not applicable to
cooperative associations of producers. The payments
will instead be attributed to the members of the
association that produced the commodities marketed
by the association on behalf of the members.
Minor Child Rules
June 1 of the current year is the date a child is
considered to be a minor for payment attribution
purposes. Payments received both directly and
indirectly by a minor child are attributed to the parent
or legal guardian.
Payment Limits
Person - Payments made directly or indirectly to a
person cannot exceed the annual amounts specified in
the table on page 4.
Joint Operations and General Partnerships - Payments
made directly or indirectly to a joint operation such as
a general partnership, cannot exceed, for each payment
specified in the table on page 4, the amount
determined by multiplying the maximum payment
amount specified for a program by the number of
persons and legal entities that comprise the ownership
of the joint operation. Payments to the joint operation
will be reduced by an amount that represents the direct
or indirect ownership in the joint operation by any
person or legal entity that has reached the maximum
limitation.
Legal Entities - Payments made directly or indirectly
to a legal entity cannot exceed the annual amounts
specified in the table on page 4. Payments made to a
legal entity will be reduced by an amount that
represents the direct or indirect ownership in the legal
entity by any person or legal entity that has reached the
maximum limitation.
Payment Limitations
This table contains the annual payment limitations for a person or legal entity for programs that are subject to the
provisions of the 2018 Farm Bill.
Overview
Congress and the USDA have established requirements
to ensure that farm program payments only go to
farmers who are “actively engaged in farming”. The
2018 Farm Bill extends the payment eligibility and
payment limitation requirements for the 2019 through
the 2023 program years.
Actively Engaged in Farming
To be considered as “actively engaged in farming,” a
person or legal entity (partnerships, corporations, and
so forth), must provide significant contributions to the
farming operation. Contributions include capital, land,
and/or equipment, and active personal labor and/or
active personal management. The active personal
management contribution must be critical to the
profitability of the farming operation. All contributions
to the farming operation must be at risk of loss.
Who is Eligible
Each partner, stockholder or member with an
ownership interest must on a regular basis contribute
active personal labor and/or active personal
management to the farming operation. The
contribution must be identifiable and documentable,
and separate and distinct from the contributions made
by any other partner, stockholder or member. If any
partner, stockholder or member with an ownership
interest fails to meet this requirement, program
payments will be reduced by the corresponding share
held by that partner, stockholder or member.
2
PAYMENT ELIGIBILITY AND PAYMENT LIMITATIONS - MAY 2019
Additional Payment Eligibility
Provisions for Joint Operations and
Legal Entities Comprised of
Non-Family Members or Partners,
Stockholders or Persons with an
Ownership Interest in the Farming
Operation
General partnerships and joint ventures comprised of
non-family members must document the actions of the
members who make significant contributions of
management to the farming operation; defined as 500
hours of specific management activities per year, or 25
percent of the total management time necessary for the
success of the farming operation. Most farming
operations conducted by general partnerships and joint
ventures with non-family members will be limited to
only one member who can meet “actively engaged in
farming” requirements and qualify for payments based
solely on the documented contribution of active
personal management. Operations that can
demonstrate that they are large or complex farming
operations, according to newly established standards,
may be allowed an additional manager. Similarly, an
operation that can demonstrate that it is a large and
complex farming operation may qualify a third
manager for payment, but only if all three managers
can document substantial management contributions to
the operation.
The 2018 Farm Bill expands the definition of family
member to include a first cousin, niece and nephew.
The addition of first cousin, niece and nephew to the
definition applies to all payment eligibility
determinations, where applicable, effective beginning
with the 2019 program year.
How it Works
Exceptions to the General Requirements
A person or legal entity that is also a landowner is
considered “actively engaged in farming” if the person
or legal entity landowner contributes the land to a
farming operation and in return, receives rent or
income for the use of the land. The landowner’s share
of the profits or losses from the farming operation
must also be commensurate with the landowner’s
contributions to the farming operation; the
contributions must be at risk of loss.
If one spouse has been determined to be “actively
engaged in farming,” the other spouse will also be
viewed as having met the significant contribution of
active personal labor or active personal management in
that same farming operation and toward meeting the
requirements of “actively engaged in farming.”
Sharecroppers may be considered “actively engaged in
farming” if the sharecropper makes a significant
contribution of active personal labor to the farming
operation and in return receives a specified share of
the crop or crops produced on the farm. The
sharecropper’s share of the profits or losses from the
farming operation must be commensurate with the
sharecropper’s contributions; the contributions must be
at risk of loss.
A cash-rent tenant is ineligible to receive payments on
cash-rented land unless the tenant makes a significant
contribution of active personal labor. If the cash-rent
tenant does not provide labor, he or she must make a
significant contribution of both active personal
management and equipment to the farming operation.
All other “actively engaged in farming” requirements
apply as well.
Foreign Persons
Foreign persons, other than registered aliens, are not
eligible to receive certain program benefits under some
programs such as the Agriculture Risk Coverage and
Price Loss Coverage programs and other specific
programs, unless the person provides a significant
contribution of capital, land and active personal labor
to the farming operation. Under some other programs
(such as the Supplemental Disaster Assistance
Programs, the Market Facilitation Program, or others)
foreign persons are excluded from program eligibility
altogether regardless of contributions to a farming
operation.
Notification Requirements
Every legal entity earning payment must report to their
local FSA committee the name and social security
number of each person who owns, either directly or
indirectly, any interest in that legal entity. The legal
entity is also required to inform all members of the
rules regarding payment eligibility and payment
limitation.
Direct Attribution
The 2018 Farm Bill establishes a maximum dollar
amount for each program that can be received
annually, directly or indirectly, by each person or legal
entity. Such limitations on payments are controlled by
direct attribution. Program payments made directly or
indirectly to a person are combined with the pro rata
interest held in any legal entity that received payment,
unless the payments to the legal entity have been
reduced by the pro rata share of the person.
Program payments made directly to a legal entity are
attributed to those persons that have a direct and
indirect interest in the legal entity, unless the payments
to the legal entity have been reduced by the pro rata
share of the person. Payment attribution to a legal
entity is tracked through four levels of ownership. If
any part to the ownership interest at the fourth level is
owned by another legal entity, a reduction in payment
will be applied to the payment entity in the amount
that represents the indirect interest of the fourth level
entity in the payment entity.
Common Attribution
Common attribution means crediting payments made
to a person or legal entity collectively to one limitation
due to a unique or specific relationship between the
persons or legal entities. Common attribution applies
to a minor child and a parent or legal guardian; and a
parent organization over a secondary organization
when the parent organization exercises control over the
secondary organization.
Ownership Interest for Direct Attribution
For the purposes of the direct attribution of payments,
ownership interest that a person or legal entity holds in
a legal entity on June 1 of the current year is used.
Direct attribution of payments is not applicable to
cooperative associations of producers. The payments
will instead be attributed to the members of the
association that produced the commodities marketed
by the association on behalf of the members.
Minor Child Rules
June 1 of the current year is the date a child is
considered to be a minor for payment attribution
purposes. Payments received both directly and
indirectly by a minor child are attributed to the parent
or legal guardian.
Payment Limits
Person - Payments made directly or indirectly to a
person cannot exceed the annual amounts specified in
the table on page 4.
Joint Operations and General Partnerships - Payments
made directly or indirectly to a joint operation such as
a general partnership, cannot exceed, for each payment
specified in the table on page 4, the amount
determined by multiplying the maximum payment
amount specified for a program by the number of
persons and legal entities that comprise the ownership
of the joint operation. Payments to the joint operation
will be reduced by an amount that represents the direct
or indirect ownership in the joint operation by any
person or legal entity that has reached the maximum
limitation.
Legal Entities - Payments made directly or indirectly
to a legal entity cannot exceed the annual amounts
specified in the table on page 4. Payments made to a
legal entity will be reduced by an amount that
represents the direct or indirect ownership in the legal
entity by any person or legal entity that has reached the
maximum limitation.
Payment Limitations
This table contains the annual payment limitations for a person or legal entity for programs that are subject to the
provisions of the 2018 Farm Bill.
Overview
Congress and the USDA have established requirements
to ensure that farm program payments only go to
farmers who are “actively engaged in farming”. The
2018 Farm Bill extends the payment eligibility and
payment limitation requirements for the 2019 through
the 2023 program years.
Actively Engaged in Farming
To be considered as “actively engaged in farming,” a
person or legal entity (partnerships, corporations, and
so forth), must provide significant contributions to the
farming operation. Contributions include capital, land,
and/or equipment, and active personal labor and/or
active personal management. The active personal
management contribution must be critical to the
profitability of the farming operation. All contributions
to the farming operation must be at risk of loss.
Who is Eligible
Each partner, stockholder or member with an
ownership interest must on a regular basis contribute
active personal labor and/or active personal
management to the farming operation. The
contribution must be identifiable and documentable,
and separate and distinct from the contributions made
by any other partner, stockholder or member. If any
partner, stockholder or member with an ownership
interest fails to meet this requirement, program
payments will be reduced by the corresponding share
held by that partner, stockholder or member.
Additional Payment Eligibility
Provisions for Joint Operations and
Legal Entities Comprised of
Non-Family Members or Partners,
Stockholders or Persons with an
Ownership Interest in the Farming
Operation
General partnerships and joint ventures comprised of
non-family members must document the actions of the
members who make significant contributions of
management to the farming operation; defined as 500
hours of specific management activities per year, or 25
percent of the total management time necessary for the
success of the farming operation. Most farming
operations conducted by general partnerships and joint
ventures with non-family members will be limited to
only one member who can meet “actively engaged in
farming” requirements and qualify for payments based
solely on the documented contribution of active
personal management. Operations that can
demonstrate that they are large or complex farming
operations, according to newly established standards,
may be allowed an additional manager. Similarly, an
operation that can demonstrate that it is a large and
complex farming operation may qualify a third
manager for payment, but only if all three managers
can document substantial management contributions to
the operation.
The 2018 Farm Bill expands the definition of family
member to include a first cousin, niece and nephew.
The addition of first cousin, niece and nephew to the
definition applies to all payment eligibility
determinations, where applicable, effective beginning
with the 2019 program year.
3
PAYMENT ELIGIBILITY AND PAYMENT LIMITATIONS - MAY 2019
How it Works
Exceptions to the General Requirements
A person or legal entity that is also a landowner is
considered “actively engaged in farming” if the person
or legal entity landowner contributes the land to a
farming operation and in return, receives rent or
income for the use of the land. The landowner’s share
of the profits or losses from the farming operation
must also be commensurate with the landowner’s
contributions to the farming operation; the
contributions must be at risk of loss.
If one spouse has been determined to be “actively
engaged in farming,” the other spouse will also be
viewed as having met the significant contribution of
active personal labor or active personal management in
that same farming operation and toward meeting the
requirements of “actively engaged in farming.”
Sharecroppers may be considered “actively engaged in
farming” if the sharecropper makes a significant
contribution of active personal labor to the farming
operation and in return receives a specified share of
the crop or crops produced on the farm. The
sharecropper’s share of the profits or losses from the
farming operation must be commensurate with the
sharecropper’s contributions; the contributions must be
at risk of loss.
A cash-rent tenant is ineligible to receive payments on
cash-rented land unless the tenant makes a significant
contribution of active personal labor. If the cash-rent
tenant does not provide labor, he or she must make a
significant contribution of both active personal
management and equipment to the farming operation.
All other “actively engaged in farming” requirements
apply as well.
Foreign Persons
Foreign persons, other than registered aliens, are not
eligible to receive certain program benefits under some
programs such as the Agriculture Risk Coverage and
Price Loss Coverage programs and other specific
programs, unless the person provides a significant
contribution of capital, land and active personal labor
to the farming operation. Under some other programs
(such as the Supplemental Disaster Assistance
Programs, the Market Facilitation Program, or others)
foreign persons are excluded from program eligibility
altogether regardless of contributions to a farming
operation.
Notification Requirements
Every legal entity earning payment must report to their
local FSA committee the name and social security
number of each person who owns, either directly or
indirectly, any interest in that legal entity. The legal
entity is also required to inform all members of the
rules regarding payment eligibility and payment
limitation.
Direct Attribution
The 2018 Farm Bill establishes a maximum dollar
amount for each program that can be received
annually, directly or indirectly, by each person or legal
entity. Such limitations on payments are controlled by
direct attribution. Program payments made directly or
indirectly to a person are combined with the pro rata
interest held in any legal entity that received payment,
unless the payments to the legal entity have been
reduced by the pro rata share of the person.
Program payments made directly to a legal entity are
attributed to those persons that have a direct and
indirect interest in the legal entity, unless the payments
to the legal entity have been reduced by the pro rata
share of the person. Payment attribution to a legal
entity is tracked through four levels of ownership. If
any part to the ownership interest at the fourth level is
owned by another legal entity, a reduction in payment
will be applied to the payment entity in the amount
that represents the indirect interest of the fourth level
entity in the payment entity.
Common Attribution
Common attribution means crediting payments made
to a person or legal entity collectively to one limitation
due to a unique or specific relationship between the
persons or legal entities. Common attribution applies
to a minor child and a parent or legal guardian; and a
parent organization over a secondary organization
when the parent organization exercises control over the
secondary organization.
Ownership Interest for Direct Attribution
For the purposes of the direct attribution of payments,
ownership interest that a person or legal entity holds in
a legal entity on June 1 of the current year is used.
Direct attribution of payments is not applicable to
cooperative associations of producers. The payments
will instead be attributed to the members of the
association that produced the commodities marketed
by the association on behalf of the members.
Minor Child Rules
June 1 of the current year is the date a child is
considered to be a minor for payment attribution
purposes. Payments received both directly and
indirectly by a minor child are attributed to the parent
or legal guardian.
Payment Limits
Person - Payments made directly or indirectly to a
person cannot exceed the annual amounts specified in
the table on page 4.
Joint Operations and General Partnerships - Payments
made directly or indirectly to a joint operation such as
a general partnership, cannot exceed, for each payment
specified in the table on page 4, the amount
determined by multiplying the maximum payment
amount specified for a program by the number of
persons and legal entities that comprise the ownership
of the joint operation. Payments to the joint operation
will be reduced by an amount that represents the direct
or indirect ownership in the joint operation by any
person or legal entity that has reached the maximum
limitation.
Legal Entities - Payments made directly or indirectly
to a legal entity cannot exceed the annual amounts
specified in the table on page 4. Payments made to a
legal entity will be reduced by an amount that
represents the direct or indirect ownership in the legal
entity by any person or legal entity that has reached the
maximum limitation.
Payment Limitations
This table contains the annual payment limitations for a person or legal entity for programs that are subject to the
provisions of the 2018 Farm Bill.
Overview
Congress and the USDA have established requirements
to ensure that farm program payments only go to
farmers who are “actively engaged in farming”. The
2018 Farm Bill extends the payment eligibility and
payment limitation requirements for the 2019 through
the 2023 program years.
Actively Engaged in Farming
To be considered as “actively engaged in farming,” a
person or legal entity (partnerships, corporations, and
so forth), must provide significant contributions to the
farming operation. Contributions include capital, land,
and/or equipment, and active personal labor and/or
active personal management. The active personal
management contribution must be critical to the
profitability of the farming operation. All contributions
to the farming operation must be at risk of loss.
Who is Eligible
Each partner, stockholder or member with an
ownership interest must on a regular basis contribute
active personal labor and/or active personal
management to the farming operation. The
contribution must be identifiable and documentable,
and separate and distinct from the contributions made
by any other partner, stockholder or member. If any
partner, stockholder or member with an ownership
interest fails to meet this requirement, program
payments will be reduced by the corresponding share
held by that partner, stockholder or member.
Additional Payment Eligibility
Provisions for Joint Operations and
Legal Entities Comprised of
Non-Family Members or Partners,
Stockholders or Persons with an
Ownership Interest in the Farming
Operation
General partnerships and joint ventures comprised of
non-family members must document the actions of the
members who make significant contributions of
management to the farming operation; defined as 500
hours of specific management activities per year, or 25
percent of the total management time necessary for the
success of the farming operation. Most farming
operations conducted by general partnerships and joint
ventures with non-family members will be limited to
only one member who can meet “actively engaged in
farming” requirements and qualify for payments based
solely on the documented contribution of active
personal management. Operations that can
demonstrate that they are large or complex farming
operations, according to newly established standards,
may be allowed an additional manager. Similarly, an
operation that can demonstrate that it is a large and
complex farming operation may qualify a third
manager for payment, but only if all three managers
can document substantial management contributions to
the operation.
The 2018 Farm Bill expands the definition of family
member to include a first cousin, niece and nephew.
The addition of first cousin, niece and nephew to the
definition applies to all payment eligibility
determinations, where applicable, effective beginning
with the 2019 program year.
4
PAYMENT ELIGIBILITY AND PAYMENT LIMITATIONS - MAY 2019
USDA is an equal opportunity provider, employer and lender.
How it Works
Exceptions to the General Requirements
A person or legal entity that is also a landowner is
considered “actively engaged in farming” if the person
or legal entity landowner contributes the land to a
farming operation and in return, receives rent or
income for the use of the land. The landowner’s share
of the profits or losses from the farming operation
must also be commensurate with the landowner’s
contributions to the farming operation; the
contributions must be at risk of loss.
If one spouse has been determined to be “actively
engaged in farming,” the other spouse will also be
viewed as having met the significant contribution of
active personal labor or active personal management in
that same farming operation and toward meeting the
requirements of “actively engaged in farming.”
Sharecroppers may be considered “actively engaged in
farming” if the sharecropper makes a significant
contribution of active personal labor to the farming
operation and in return receives a specified share of
the crop or crops produced on the farm. The
sharecropper’s share of the profits or losses from the
farming operation must be commensurate with the
sharecropper’s contributions; the contributions must be
at risk of loss.
A cash-rent tenant is ineligible to receive payments on
cash-rented land unless the tenant makes a significant
contribution of active personal labor. If the cash-rent
tenant does not provide labor, he or she must make a
significant contribution of both active personal
management and equipment to the farming operation.
All other “actively engaged in farming” requirements
apply as well.
Foreign Persons
Foreign persons, other than registered aliens, are not
eligible to receive certain program benefits under some
programs such as the Agriculture Risk Coverage and
Price Loss Coverage programs and other specific
programs, unless the person provides a significant
contribution of capital, land and active personal labor
to the farming operation. Under some other programs
(such as the Supplemental Disaster Assistance
Programs, the Market Facilitation Program, or others)
foreign persons are excluded from program eligibility
altogether regardless of contributions to a farming
operation.
Notification Requirements
Every legal entity earning payment must report to their
local FSA committee the name and social security
number of each person who owns, either directly or
indirectly, any interest in that legal entity. The legal
entity is also required to inform all members of the
rules regarding payment eligibility and payment
limitation.
Direct Attribution
The 2018 Farm Bill establishes a maximum dollar
amount for each program that can be received
annually, directly or indirectly, by each person or legal
entity. Such limitations on payments are controlled by
direct attribution. Program payments made directly or
indirectly to a person are combined with the pro rata
interest held in any legal entity that received payment,
unless the payments to the legal entity have been
reduced by the pro rata share of the person.
Program payments made directly to a legal entity are
attributed to those persons that have a direct and
indirect interest in the legal entity, unless the payments
to the legal entity have been reduced by the pro rata
share of the person. Payment attribution to a legal
entity is tracked through four levels of ownership. If
any part to the ownership interest at the fourth level is
owned by another legal entity, a reduction in payment
will be applied to the payment entity in the amount
that represents the indirect interest of the fourth level
entity in the payment entity.
Common Attribution
Common attribution means crediting payments made
to a person or legal entity collectively to one limitation
due to a unique or specific relationship between the
persons or legal entities. Common attribution applies
to a minor child and a parent or legal guardian; and a
parent organization over a secondary organization
when the parent organization exercises control over the
secondary organization.
Ownership Interest for Direct Attribution
For the purposes of the direct attribution of payments,
ownership interest that a person or legal entity holds in
a legal entity on June 1 of the current year is used.
Direct attribution of payments is not applicable to
cooperative associations of producers. The payments
will instead be attributed to the members of the
association that produced the commodities marketed
by the association on behalf of the members.
Minor Child Rules
June 1 of the current year is the date a child is
considered to be a minor for payment attribution
purposes. Payments received both directly and
indirectly by a minor child are attributed to the parent
or legal guardian.
Payment Limits
Person - Payments made directly or indirectly to a
person cannot exceed the annual amounts specified in
the table on page 4.
Joint Operations and General Partnerships - Payments
made directly or indirectly to a joint operation such as
a general partnership, cannot exceed, for each payment
specified in the table on page 4, the amount
determined by multiplying the maximum payment
amount specified for a program by the number of
persons and legal entities that comprise the ownership
of the joint operation. Payments to the joint operation
will be reduced by an amount that represents the direct
or indirect ownership in the joint operation by any
person or legal entity that has reached the maximum
limitation.
Legal Entities - Payments made directly or indirectly
to a legal entity cannot exceed the annual amounts
specified in the table on page 4. Payments made to a
legal entity will be reduced by an amount that
represents the direct or indirect ownership in the legal
entity by any person or legal entity that has reached the
maximum limitation.
Payment Limitations
This table contains the annual payment limitations for a person or legal entity for programs that are subject to the
provisions of the 2018 Farm Bill.
1/
Decouples the combined $125,000 payment limit for PLC, ARC, from Loan Deficiency Program (LDP) and Market Loan Gain (MLG)
for covered commodities and peanuts.
Beginning with crop year 2019, LDP’s and MLG’s are no longer subject to Payment Limitation or Payment Eligibility
provisions, including “actively engaged in farming” and ‘cash-rent tenant’ provisions for covered commodities and peanuts.
ARC and PLC payment are subject to a combined annual limitation of $125,000.
2/
ECP payment limitation is increased from $200,000 per disaster event to $500,000 per disaster event.
3/
A separate maximum payment limitation is provided of $125,000 on NAP payments for losses to crops with catastrophic coverage and
a $300,000 maximum payment limitation on NAP payments for losses to crops with buy-up coverage.
4/
The $125,000 payment limitation applicable to Emergency Assistance for Livestock, Honey Bees, and Farm Raised Fish Program
(ELAP) payments is removed beginning in 2019. The $125,000 payment limitation applicable to the Livestock Indemnity Program
(LIP) is removed effective January 1, 2017 and subsequent years.
5/
TAP no longer has a dollar limitation; however, there is a per program year acreage limitation of 1,000 acres.
More information
For more information on FSA programs, eligibility and related information, visit fsa.usda.gov.
Find your local USDA Service Center
To locate your local FSA office, visit farmers.gov/service-locator.
Program Payment Type
Commodity Programs
Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) - other than peanuts
Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) - peanuts
Conservation Programs
Conservation Reserve Program (CRP) - annual rental payment and incentive payment
Emergency Conservation Program (ECP) - per disaster event
Emergency Forest Restoration Program (EFRP) - per disaster event
Conservation Stewardship Program (CSP)
Environmental Quality Incentives Program (EQIP)
Agricultural Management Assistance (AMA)
Disaster Assistance Programs
Livestock Forage Disaster Program (LFP)
Noninsured Crop Disaster Assistance Program (NAP)
Tree Assistance Program (TAP)
Per person or Legal Entity
(or producer for TAP)
Per Year Limitation Amount
2019 Through 2023
$125,000
1/
$125,000
1/
$50,000
$500,000
2/
$500,000
$200,000
$450,000
$50,000
$125,000
4/
$125,000/$300,000
3/
1,000 acres
5/
