USDA closed a loophole in farm program payments to just those who are actively engaged in farming.
USDA said it has finalized a rule to ensure that farm safety-net payments are issued only to active managers of farms that operate as joint ventures or general partnerships, consistent with the direction and authority provide by Congress in the 2014 Farm Bill.
The action, which exempts family farm operations, closes a loophole where individuals who were not actively part of farm management still received payments.
Since 1987, the broad definition of “actively engaged” resulted in some general partnerships and joint ventures adding managers to the farming operation, qualifying for more payments that did not substantially contribute to management.
As required by Congress, the new rule does not apply to family farms or change regulations related to contributions of land, capital, equipment, or labor.
The changes go into effect for the 2016 crop year for most farms. Farms that have already planted fall crops for 2016 have until the 2017 crop year to comply.
