New rules on "actively engaged in farming" expected soon

Farm and Ranch November 25, 2009 USDA Undersecretary Jim Miller told the recent Washington Association of Wheat Growers convention that new rules on defining “actively engaged” for the purpose of receiving federal farm program benefits should be out in the next few weeks. Miller, once a Washington wheat grower himself, said USDA is trying to clarify the rules the Bush Administration issued.

Miller: “We are trying to ensure that these rules follow the intent of Congress, which I believe basically said to farmers, we don‘t care how you organize your farm operation. We don‘t care whether you are a partnership, an LLC, whether you are a C-corporation an S corporation. We don’t care what that structure is. What we do care about is who is effectively getting these payments. And the previous administration went part way and dealt with some of those issues. We are now trying to get them all on the same footing. So gain, we are not suggesting that farmers should organize one way or another purely for payment limitation reasons and we do not want to be penalizing producers because of the way they have organized for whatever other reasons that they may have to suit their own circumstance.

Miller also said USDA will clarify by rule the spousal exemption and will be announcing its memorandum of understanding with the Internal Revenue Service concerning the adjusted gross income test.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network.

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