12/30/08 New rule published on payment limits

Farm and Ranch December 30, 2008 The USDA published an interim final regulation last week for changes to both the Adjusted Gross Income qualifications, or AGI, program payment limits and direct attribution as required by the new farm bill. Agriculture Secretary Ed Schafer says the changes will make farm program payments more defendable to America's taxpayers. Under the new regulations, an individual or entity must have a three-year average AGI of 750-thousand dollars or less in order to qualify for direct payments. Secretary Schafer says the administration had wanted a lower cap. Schafer: "The administration was pushing for a $250,000 AGI cap. I think Congress in the end came up with a $750,000 cap. You know that is what we are trying to deal with. That is what we are delivering. That is what the farm bill says and so we will make sure the intent of Congress is delivered as it says here in the farm bill." The definition of income derived from farming was expanded to include such items as packing, storing and transporting agricultural commodities. For conservation payments the income limits are more liberal. Program payments are limited by direct attribution to individuals or entities. Qualifying spouses are eligible to be considered separate persons for payment limitation purposes. USDA is currently taking public comment on the interim final rule. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.