Farm Subsidy Limits Tightened: New Rules for Active Farmers and Payment Caps.
This law significantly tightens the rules for receiving federal farm subsidies by lowering payment caps and imposing stricter requirements for proving active engagement in farming. It defines "active personal management" to require substantial personal labor (at least 1,000 hours annually), ensuring that financial aid primarily benefits working farmers rather than passive investors or large entities exploiting loopholes. These changes aim to improve the integrity of federal farm programs.
Key points
Establishes a strict definition of "active personal management," requiring a minimum of 1,000 hours of personal labor or 50% of the total required management time per year.
Caps marketing loan gains and loan deficiency payments at $75,000 per person or legal entity.
Introduces new, lower overall payment limits for farming operations (e.g., $250,000 for operations with two or more actively engaged persons).
Removes certain exemptions related to the Adjusted Gross Income (AGI) limit, potentially disqualifying more high-income individuals from receiving subsidies.
Expired
Additional Information
Print number: 118_S_2610
Sponsor: Sen. Grassley, Chuck [R-IA]
Process start date: 2023-07-27