To facilitate administration of section 1308 of this title and this section, each person or legal entity receiving payments described in subsections (b) and (c) of section 1308 of this title as a separate person or legal entity shall separately provide to the Secretary, at such times and in such manner as prescribed by the Secretary-
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).
Except as provided in subsections (c) and (d)-
A person or legal entity that is a landowner contributing the owned land to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if-
If a majority of the participants in a farming operation are family members, an adult family member shall be considered to be actively engaged in farming with respect to the farming operation if the person-
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.
7 U.S.C. §§ 1308-1
EDITORIAL NOTES
CODIFICATION Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246. Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
AMENDMENTS2008- Pub. L. 110-246, §1603(c)(1), substituted "Notification of interests" for "Prevention of creation of entities to qualify as separate persons" in section catchline.Subsec. (a). Pub. L. 110-246, §1603(c)(2), added subsec. (a) and struck out former subsec. (a) which related to prevention of use of multiple legal entities to avoid effective application of payment limitations under section 1308 of this title.Subsecs. (b) to (d). Pub. L. 110-246, §1603(d), added subsecs. (b) to (d) and struck out former subsec. (b) which related to requirement that a person be an individual or entity described in former section 1308(e)(2)(A) of this title and actively engaged in farming with respect to a particular farming operation to be separately eligible for farm program payments with respect to that operation.2002-Subsec. (a)(1). Pub. L. 107-171, §1603(c)(1), substituted "section 1308(e)(2)(A) of this title" for "section 1308(5)(B)(i) of this title" and "section 1308(e)(2)(A)(ii) of this title" for "section 1308(5)(B)(i)(II) of this title".Subsec. (b)(1). Pub. L. 107-171, §1603(c)(1)(B), substituted "section 1308(e)(2)(A) of this title" for "section 1308(5)(B)(i) of this title".Subsec. (b)(2)(B). Pub. L. 107-171, §1603(c)(1)(A), substituted "section 1308(e)(2)(A)(ii) of this title" for "section 1308(5)(B)(i)(II) of this title". 1996-Subsec. (a)(1). Pub. L. 104-127, §115(c)(1)(A), struck out "under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)" before "may not also hold".Subsec. (b)(1). Pub. L. 104-127, §115(c)(1)(B), struck out "under the Agricultural Act of 1949" before "with respect to a particular".1991-Subsec. (a)(2). Pub. L. 102-237 struck out "0 to" after "less than". 1990-Subsec. (a)(2). Pub. L. 101-624, §1111(f), substituted "0 to 10 percent" for "10 percent".Subsec. (b)(6). Pub. L. 101-624, §1111(d), added par. (6). 1987-Subsec. (b). Pub. L. 100-203, §1302, added subsec. (b).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the date of enactment of Pub. L. 110-234 see section 4 of Pub. L. 110-246 set out as an Effective Date note under section 8701 of this title.
EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101-624 set out as a note under section 1421 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100-203, title I, §1302, Dec. 22, 1987, 101 Stat. 1330-14, provided that the amendment made by that section is effective beginning with the 1989 crops.
EFFECTIVE DATE Pub. L. 100-203, title I, §1301(a), Dec. 22, 1987, 101 Stat. 1330-12, provided that this section is effective beginning with the 1989 crops.
TRANSITION PROVISIONSSection, as in effect on Sept. 30, 2007, to continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts, see section 1603(h) of Pub. L. 110-246 set out as a note under section 1308 of this title.
RULEMAKING RELATED TO SIGNIFICANT CONTRIBUTION FOR ACTIVE PERSONAL MANAGEMENT Pub. L. 113-79, title I, §16041604,, 128 Stat. 706, provided that:"(a) REGULATIONS REQUIRED.-Within 180 days after the date of the enactment of this Act [Feb. 7, 2014], the Secretary shall promulgate, with an opportunity for notice and comment, regulations-"(1) 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"(2) 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."(b) CONSIDERATIONS.-In promulgating the regulations required under subsection (a), the Secretary shall consider- "(1) the size, nature, and management requirements of each type of farming operation;"(2) the changing nature of active personal management due to advancements of farming operations; and "(3) the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation."(c) FAMILY FARMS.-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))). "(d) MONITORING.-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. "(e) PAPERWORK REDUCTION.-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."(f) RELATION TO OTHER REQUIREMENTS.-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)."(g) EFFECTIVE DATE.-The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 2015 crop year."