On the last day of 2009 the US Department of Agriculture (USDA) Secretary Tom Vilsack announced the department is partnering with the Internal Revenue Service (IRS) “to reduce fraud in farm programs and streamlining payment limits for family farmers,” according to a USDA news release.The effort is intended to strengthen the farm safety net while making it more defensible against critics, and it will help “the agricultural industry to meet requirements included in the 2008 Farm Bill.”
Secretary Vilsack issued this statement in the news release, "Today's announcement will ensure that the producers who depend upon the safety net of USDA programs will have future access to these programs by enhancing the overall integrity of the programs . . . It will also provide more flexibility for family farm operations across the country."
For the announcement, the USDA finalized a memorandum of understanding with the IRS that will establish an electronic process to verify farmers and program administrators are complying with the Adjusted Gross Income limits established in the 2008 Farm Bill that are used to determine how much farmers can receive in government support.
According to the news release, “This agreement will ensure that payments are not issued to producers whose adjusted gross income (AGI) exceeds certain limits. The limits set in the 2008 Farm Bill are $500,000 nonfarm average AGI for commodity and disaster programs; $750,000 farm average AGI for direct payments; and $1 million nonfarm average AGI for conservation programs.”
The USDA has also amended rules that deal with requirements to be ‘“actively engaged’” in farming. The changes are intended to ensure eligible farms and family farms specifically meet the requirements to qualify for Direct and Counter-cyclical Program payments or Average Crop Revenue Election program. Both are administered by the USDA’s Farm Service Agency.
To see the USDA news release and learn more about this agreement, click here.
Posted: 01/11/10
