USDA Starts Implementation of $1 Million AGI Limit on Direct Payments for 2012

December 13, 2011 01:14 AM
 
Untitled Document

via a special arrangement with Informa Economics, Inc.

Provision part of Fiscal Year 2012 spending plan

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


USDA is in the process of implementing a $1 million limit on average adjusted gross income (AGI) for those requesting direct payments for the 2012 crop year.

Details: The $1 million average AGI limitation will now be applied to all persons and legal entities that request 2012 direct payments in addition to the $500,000 average nonfarm AGI and the $750,000 average farm AGI limitations  The $1 million average nonfarm AGI limitation remains effective for conservation program participants.

Farmers participating in the direct and countercyclical payment (DCP) program have to fill out form CCC-931 as part of the process to verify their AGI levels. However, that form has been revised to reflect the additional $1 million limit so those already submitting the form for 2012 participation will have to fill that updated form out again.

The new $1 million AGI limit:

  • represents the total amount of the average AGI (including all income, both farm and nonfarm) of the person or legal entity

  • is based on the same 3-year period as the other average AGI limitations

  • applies only to 2012 direct payments under DCP

  • is in addition to the $500,000 average nonfarm AGI, the $750,000 average farm AGI, and the $1 million average nonfarm AGI limitations.

Here’s a handy table of the AGI limits in effect for 2012:

Programs and Average AGI Limitations

Program Payments
and Benefits

Average AGI Amount

Income

Average AGI

Commodity (DCP and ACRE), Price Support, and Disaster Assistance

$500,000

Nonfarm

Adjusted gross nonfarm income.

DCP and ACRE Direct

Payments

$750,000

Farm

Adjusted gross farm income

(must also meet both the

$500,000 nonfarm AGI and the

$1 million AGI limitations).

DCP and ACRE Direct

Payments

$1 million

Total farm
and nonfarm

Adjusted gross income (must

also meet both the $500,000 nonfarm and the $750,000 farm AGI limitations).

Conservation

$1 million

Nonfarm

Adjusted gross nonfarm

income, unless 66.66 percent or more of the average AGI is average adjusted gross farm income.


Note: May be waived on a case-by-case basis if environmentally sensitive land of special significance would be protected.



NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close