USDA Removes Farm Program Payments to Managers Not Actively Engaged in Farming

The USDA recently 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 provided by Congress in the 2014 Farm Bill. Washington State Executive Director of USDA’s Farm Service Agency Judy Olson provides some important clarification concerning this new rule
Olson: “The rules does not change or affect farming operations that are comprised entirely of family members. They are exempted from this rule and that definition has been on the books for a very, very long. In our state, the majority of partnership and joint ventures that this rule applies to — are family partnerships and joint ventures. So there are no change for those family farming operations that have solely family members — so grandfathers, fathers, sons, mothers, daughters and their spouses — those are considered family operations.”
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. The rule applies to non-family operations seeking more than one farm manager, and requires measurable, documented hours and key management activities each year. Some operations of certain sizes and complexity may be allowed up to three qualifying managers under limited conditions.