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7 U.S.C. §§ 1308–1308–3a

5 sections in range

§1308. Payment limitations

7 U.S.C. § 1308

(a)
Definitions— In this section through section 1308–5 of this title:
(1)
Covered commodity— The term “covered commodity” has the meaning given that term in section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011).
(2)
Family member— The term “family member” means a person to whom a member in the farming operation is related as lineal ancestor, lineal descendant, sibling, first cousin, niece, nephew, spouse, or otherwise by marriage.
(3)
Legal entity— The term “legal entity” means an entity that is created under Federal or State law and that—
(A)
owns land or an agricultural commodity; or
(B)
produces an agricultural commodity.
(4)
Person— The term “person” means a natural person, and does not include a legal entity.
(5)
Qualified pass-through entity— The term “qualified pass-through entity” means—
(A)
a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986 [26 U.S.C. 701 et seq.]);
(B)
an S corporation (as defined in section 1361 of that Code);
(C)
a limited liability company that does not affirmatively elect to be treated as a corporation; and
(D)
a joint venture or general partnership.
(6)
Secretary— The term “Secretary” means the Secretary of Agriculture.
(b)
Limitation on payments for covered commodities (other than peanuts)— Subject to subsection (i), the total amount of payments received, directly or indirectly, by a person or legal entity (except a qualified pass-through entity) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017) (other than for peanuts) may not exceed $155,000.
(c)
Limitation on payments for peanuts— Subject to subsection (i), the total amount of payments received, directly or indirectly, by a person or legal entity (except a qualified pass-through entity) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017) for peanuts may not exceed $155,000.
(d)
Limitation on applicability— Nothing in this section authorizes any limitation on any benefit associated with the forfeiture of a commodity pledged as collateral for a loan made available under title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.].
(e)
Attribution of payments—
(1)
In general— In implementing subsections (b) and (c) and a program described in paragraphs (1)(C) and (2)(B) of section 1308–3a(b)1 of this title, the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to a person by taking into account the direct and indirect ownership interests of the person in a legal entity that is eligible to receive the payments.
(2)
Payments to a person— Each payment made directly to a person shall be combined with the pro rata interest of the person in payments received by a legal entity in which the person has a direct or indirect ownership interest unless the payments of the legal entity have been reduced by the pro rata share of the person.
(3)
Payments to a legal entity—
(A)
In general— Each payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity unless the payment to the legal entity has been reduced by the pro rata share of the person.
(B)
Attribution of payments—
(i)
Payment limits— Except as provided in clause (ii), payments made to a legal entity shall not exceed the amounts specified in subsections (b) and (c).
(ii)
Exception for qualified pass-through entities— Payments made to a qualified pass-through entity shall not exceed, for each payment specified in subsections (b) and (c), the amount determined by multiplying the maximum payment amount specified in subsections (b) and (c) by the number of persons and legal entities (other than qualified pass-through entities) that comprise the ownership of the qualified pass-through entity.
(iii)
Reduction— Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity by any person or legal entity that has otherwise exceeded the applicable maximum payment limitation.
(4)
4 levels of attribution for embedded legal entities—
(A)
In general— Attribution of payments made to legal entities shall be traced through 4 levels of ownership in legal entities.
(B)
First level— Any payments made to a legal entity (a first-tier legal entity) that is owned in whole or in part by a person shall be attributed to the person in an amount that represents the direct ownership in the first-tier legal entity by the person.
(C)
Second level—
(i)
In general— Any payments made to a first-tier legal entity that is owned (in whole or in part) by another legal entity (a second-tier legal entity) shall be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity in the first-tier legal entity.
(ii)
Ownership by a person— If the second-tier legal entity is owned (in whole or in part) by a person, the amount of the payment made to the first-tier legal entity shall be attributed to the person in the amount that represents the indirect ownership in the first-tier legal entity by the person.
(D)
Third and fourth levels—
(i)
In general— Except as provided in clause (ii), the Secretary shall attribute payments at the third and fourth tiers of ownership in the same manner as specified in subparagraph (C).
(ii)
Fourth-tier ownership— If the fourth-tier of ownership is that of a fourth-tier legal entity and not that of a person, the Secretary shall reduce the amount of the payment to be made to the first-tier legal entity in the amount that represents the indirect ownership in the first-tier legal entity by the fourth-tier legal entity.
(f)
Special rules—
(1)
Minor children—
(A)
In general— Except as provided in subparagraph (B), payments received by a child under the age of 18 shall be attributed to the parents of the child.
(B)
Regulations— The Secretary shall issue regulations specifying the conditions under which payments received by a child under the age of 18 will not be attributed to the parents of the child.
(2)
Marketing cooperatives— Subsections (b) and (c) shall not apply to a cooperative association of producers with respect to commodities produced by the members of the association that are marketed by the association on behalf of the members of the association but shall apply to the producers as persons.
(3)
Trusts and estates—
(A)
In general— With respect to irrevocable trusts and estates, the Secretary shall administer this section through section 1308–5 of this title in such manner as the Secretary determines will ensure the fair and equitable treatment of the beneficiaries of the trusts and estates.
(B)
Irrevocable trust—
(i)
In general— In order for a trust to be considered an irrevocable trust, the terms of the trust agreement shall not—
(I)
allow for modification or termination of the trust by the grantor;
(II)
allow for the grantor to have any future, contingent, or remainder interest in the corpus of the trust; or
(III)
except as provided in clause (ii), provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years beginning on the date the trust is established.
(ii)
Exception— Clause (i)(III) shall not apply in a case in which the transfer is—
(I)
contingent on the remainder beneficiary achieving at least the age of majority; or
(II)
contingent on the death of the grantor or income beneficiary.
(C)
Revocable trust— For the purposes of this section through section 1308–5 of this title, a revocable trust shall be considered to be the same person as the grantor of the trust.
(4)
Cash rent tenants—
(A)
Definition— In this paragraph, the term “cash rent tenant” means a person or legal entity that rents land—
(i)
for cash; or
(ii)
for a crop share guaranteed as to the amount of the commodity to be paid in rent.
(B)
Restriction— A cash rent tenant who makes a significant contribution of active personal management, but not of personal labor, with respect to a farming operation shall be eligible to receive a payment described in subsection (b) or (c) only if the tenant makes a significant contribution of equipment to the farming operation.
(5)
Federal agencies—
(A)
In general— Notwithstanding subsection (d), a Federal agency shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.], or title XII of this Act [16 U.S.C. 3801 et seq.].
(B)
Land rental— A lessee of land owned by a Federal agency may receive a payment described in subsection (b), (c), or (d) if the lessee otherwise meets all applicable criteria.
(6)
State and local governments—
(A)
In general— Notwithstanding subsection (d), except as provided in subsection (g), a State or local government, or political subdivision or agency of the government, shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.], or title XII of this Act [16 U.S.C. 3801 et seq.].
(B)
Tenants— A lessee of land owned by a State or local government, or political subdivision or agency of the government, may receive payments described in subsections (b), (c), and (d) if the lessee otherwise meets all applicable criteria.
(7)
Changes in farming operations—
(A)
In general— In the administration of this section through section 1308–5 of this title, the Secretary may not approve any change in a farming operation that otherwise will increase the number of persons to which the limitations under this section are applied unless the Secretary determines that the change is bona fide and substantive.
(B)
Family members— The addition of a family member to a farming operation under the criteria set out in section 1308–1 of this title shall be considered a bona fide and substantive change in the farming operation.
(8)
Death of owner—
(A)
In general— If any ownership interest in land or a commodity is transferred as the result of the death of a program participant, the new owner of the land or commodity may, if the person is otherwise eligible to participate in the applicable program, succeed to the contract of the prior owner and receive payments subject to this section without regard to the amount of payments received by the new owner.
(B)
Limitations on prior owner— Payments made under this paragraph shall not exceed the amount to which the previous owner was entitled to receive under the terms of the contract at the time of the death of the prior owner.
(9)
Administration of reduction— The Secretary shall apply any order described in section 1614(d)(1) of the Agricultural Act of 2014 (7 U.S.C. 9097(d)(1)) to payments under sections 1116 and 1117 of that Act (7 U.S.C. 9016, 9017) prior to applying payment limitations under this section.
(g)
Public schools—
(1)
In general— Notwithstanding subsection (f)(6)(A), a State or local government, or political subdivision or agency of the government, shall be eligible, subject to the limitation in paragraph (2), to receive a payment described in subsection (b) or (c) for land owned by the State or local government, or political subdivision or agency of the government, that is used to maintain a public school.
(2)
Limitation—
(A)
In general— For each State, the total amount of payments described in subsections (b) and (c) that are received collectively by the State and local government and all political subdivisions or agencies of those governments shall not exceed $500,000.
(B)
Exception— The limitation in subparagraph (A) shall not apply to States with a population of less than 1,500,000.
(h)
Time limits; reliance— Regulations of the Secretary shall establish time limits for the various steps involved with notice, hearing, decision, and the appeals procedure in order to ensure expeditious handling and settlement of payment limitation disputes. Notwithstanding any other provision of law, actions taken by an individual or other entity in good faith on action or advice of an authorized representative of the Secretary may be accepted as meeting the requirement under this section or section 1308–1 of this title, to the extent the Secretary deems it desirable in order to provide fair and equitable treatment.
(i)
Adjustment— For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

Footnotes

  1. 1 See References in Text note below.
Notes, amendments, and revision history

(Pub. L. 99–198, title X, § 1001, Dec. 23, 1985, 99 Stat. 1444; Pub. L. 99–500, § 108(a), Oct. 18, 1986, 100 Stat. 1783–346, and Pub. L. 99–591, § 108(a), Oct. 30, 1986, 100 Stat. 3341–346; Pub. L. 100–71, title I, July 11, 1987, 101 Stat. 428; Pub. L. 100–203, title I, §§ 1301(a)(1), (2), 1303, 1305(c), 1307, Dec. 22, 1987, 101 Stat. 1330–12, 1330–16, 1330–18, 1330–19; Pub. L. 101–217, §§ 1, 2, Dec. 11, 1989, 103 Stat. 1857; Pub. L. 101–624, title XI, § 1111(a), (c), (e), Nov. 28, 1990, 104 Stat. 3497–3499; Pub. L. 102–237, title I, § 118(b), Dec. 13, 1991, 105 Stat. 1841; Pub. L. 103–66, title I, § 1101(b)(3)(A), Aug. 10, 1993, 107 Stat. 314; Pub. L. 104–127, title I, § 115(b), Apr. 4, 1996, 110 Stat. 902; Pub. L. 107–171, title I, § 1603(a), (b), May 13, 2002, 116 Stat. 213, 214; Pub. L. 110–234, title I, § 1603(a), (b), May 22, 2008, 122 Stat. 1002; Pub. L. 110–246, § 4(a), title I, § 1603(a), (b), June 18, 2008, 122 Stat. 1664, 1730; Pub. L. 113–79, title I, §§ 1603(a)–(b)(2), 1605(f), Feb. 7, 2014, 128 Stat. 705, 706, 708; Pub. L. 115–334, title I, § 1703(a), Dec. 20, 2018, 132 Stat. 4525; Pub. L. 119–21, title I, §§ 10306(a), (b), 10307, July 4, 2025, 139 Stat. 91, 92.)

Editorial Notes

References in Text

The Internal Revenue Code of 1986, referred to in subsec. (a)(5)(A), (B), is classified generally to Title 26, Internal Revenue Code.

The Agricultural Act of 2014, referred to in subsecs. (d) and (f)(5)(A), (6)(A), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. For complete classification of this Act to the Code, see short title note set out under section 9001 of this title and Tables.

Pars. (1) and (2) of section 1308–3a(b) of this title, referred to in subsec. (e)(1), were repealed, and new pars. (1) and (2) were enacted, by Pub. L. 113–79, title I, § 1605(a)(2), Feb. 7, 2014, 128 Stat. 707.

The Food, Conservation, and Energy Act of 2008, referred to in subsec. (f)(5)(A), (6)(A), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables.

Title XII of this Act, referred to in subsec. (f)(5)(A), (6)(A), means title XII of the Food Security Act of 1985, Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1504, which is classified principally to chapter 58 (§ 3801 et seq.) of Title 16, Conservation.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Pub. L. 99–591 is a corrected version of Pub. L. 99–500.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Prior Provisions

A prior section 1308, Pub. L. 97–98, title XI, § 1101, Dec. 22, 1981, 95 Stat. 1263; Pub. L. 98–88, § 6, Aug. 26, 1983, 97 Stat. 499, related to programs for 1982 through 1985 crops.

Another prior section 1308, Pub. L. 95–113, title I, § 101, Sept. 29, 1977, 91 Stat. 917; Pub. L. 96–213, § 5, Mar. 18, 1980, 94 Stat. 120, related to programs for 1978 through 1981 crops.

Amendments

2025—Subsec. (a)(5), (6). Pub. L. 119–21, § 10306(a)(1), added par. (5) and redesignated former par. (5) as (6).

Subsec. (b). Pub. L. 119–21, § 10307(1), substituted “Subject to subsection (i), the total amount” for “The total amount” and “$155,000” for “$125,000”.

Pub. L. 119–21, § 10306(a)(2), substituted “except a qualified pass-through entity” for “except a joint venture or general partnership”.

Subsec. (c). Pub. L. 119–21, § 10307(2), substituted “Subject to subsection (i), the total amount” for “The total amount” and “$155,000” for “$125,000”.

Pub. L. 119–21, § 10306(a)(2), substituted “except a qualified pass-through entity” for “except a joint venture or general partnership”.

Subsec. (d). Pub. L. 119–21, § 10306(a)(3), struck out “subtitle B of title I of the Agricultural Act of 2014 or” after “made available under”.

Subsec. (e)(3)(B)(ii). Pub. L. 119–21, § 10306(b), substituted “qualified pass-through entities” for “joint ventures and general partnerships” in heading and text and substituted “a qualified pass-through entity” for “a joint venture or a general partnership” and “the qualified pass-through entity” for “the joint venture or general partnership”.

Subsec. (i). Pub. L. 119–21, § 10307(3), added subsec. (i).

2018—Subsec. (a)(1). Pub. L. 115–334, § 1703(a)(1)(A), substituted “section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011)” for “section 1001 of the Food, Conservation, and Energy Act of 2008”.

Subsec. (a)(2). Pub. L. 115–334, § 1703(a)(1)(B), inserted “first cousin, niece, nephew,” after “sibling,”.

Subsecs. (b), (c). Pub. L. 115–334, § 1703(a)(2), substituted “sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017)” for “sections 1116 and 1117 and as marketing loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014”.

Subsec. (f)(9). Pub. L. 115–334, § 1703(a)(3), added par. (9).

2014—Subsecs. (b), (c). Pub. L. 113–79, § 1603(a), added subsecs. (b) and (c) and struck out former subsecs. (b) and (c). Prior to amendment, subsec. (b) related to limitations on direct payments, counter-cyclical payments, and ACRE payments for covered commodities other than peanuts, and subsec. (c) related to limitations on direct payments, counter-cyclical payments, and ACRE payments for peanuts.

Subsec. (d). Pub. L. 113–79, § 1605(f), inserted before period at end “or title I of the Agricultural Act of 2014”.

Pub. L. 113–79, § 1603(b)(1), substituted “the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014” for “the marketing assistance loan program or the loan deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008”.

Subsec. (f)(5)(A). Pub. L. 113–79, § 1603(b)(2)(A), substituted “, title I of the Agricultural Act of 2014, or title XII” for “or title XII”.

Subsec. (f)(6)(A). Pub. L. 113–79, § 1603(b)(2)(B), substituted “, title I of the Agricultural Act of 2014, or title XII” for “or title XII”.

2008—Subsec. (a). Pub. L. 110–246, § 1603(b)(1)(A), inserted “through section 1308–5 of this title” after “this section” in introductory provisions.

Subsec. (a)(1). Pub. L. 110–246, § 1603(a), substituted “Food, Conservation, and Energy Act of 2008” for “Farm Security and Rural Investment Act of 2002”.

Subsec. (a)(2). Pub. L. 110–246, § 1603(b)(1)(B), (C), added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “The term ‘loan commodity’ has the meaning given that term in section 1001 of the Farm Security and Rural Investment Act of 2002, except that the term does not include wool, mohair, or honey.”

Subsec. (a)(3) to (5). Pub. L. 110–246, § 1603(b)(1)(B), (C), added pars. (3) and (4) and redesignated former par. (3) as (5).

Subsecs. (b) to (d). Pub. L. 110–246, § 1603(b)(2), added subsecs. (b) to (d) and struck out former subsecs. (b) to (d) which related to limitation on direct payments, limitation on counter-cyclical payments, and limitation on marketing loan gains and loan deficiency payments, respectively.

Subsecs. (e) to (h). Pub. L. 110–246, § 1603(b)(3), added subsecs. (e) to (g), redesignated former subsec. (g) as (h), and struck out former subsecs. (e) and (f) which related to issuance of regulations defining “person” and prescribing rules determined necessary to assure a fair and reasonable application of section limitation, and inapplicability to public schools of provisions limiting payments to any person.

2002—Pub. L. 107–171, § 1603(a), substituted section catchline for former section catchline.

Subsec. (a) to (d). Pub. L. 107–171, § 1603(a), added subsecs. (a) to (d) and struck out former pars. (1) to (4) which related to limitation on payments under production flexibility contracts, limitation on marketing loan gains and loan deficiency payments, description of payments subject to limitation, and definitions, respectively.

Subsec. (e). Pub. L. 107–171, § 1603(b)(1), redesignated par. (5) as subsec. (e), inserted heading, further redesignated former subpars., cls., and subcls. as pars., subpars., and cls., respectively, substituted “paragraph (1), subject to subparagraph (B)” for “subparagraph (A), subject to clause (ii)” in subsec. (e)(2)(A) and “as described in subsections (b), (c), and (d) of this section” for “as described in paragraphs (1) and (2)” in subsec. (e)(2)(C)(ii), and struck out second sentence of subsec. (e)(1) which read as follows: “Such regulations shall incorporate the provisions in subparagraphs (B) through (E) of this paragraph, paragraphs (6) and (7), and sections 1308–1 through 1308–3 of this title.”

Subsec. (f). Pub. L. 107–171, § 1603(b)(2), redesignated par. (6) as subsec. (f) and inserted heading.

Subsec. (g). Pub. L. 107–171, § 1603(b)(3), redesignated par. (7) as subsec. (g) and inserted heading.

1996—Pars. (1) to (4). Pub. L. 104–127 added pars. (1) to (4) and struck out former pars. (1) to (4) which established limitations on payments under wheat, feed grains, upland cotton, extra long staple cotton, honey, and rice programs for 1987 through 1997 crops.

1993—Pars. (1)(A), (B), (2)(A). Pub. L. 103–66 substituted “1997” for “1995”.

1991—Par. (2)(B)(iv). Pub. L. 102–237 inserted “section” before “107B(c)(1)”.

1990—Par. (1). Pub. L. 101–624, § 1111(a)(1), designated existing provisions as subpar. (A), substituted “1995” for “1990”, and added subpar. (B).

Par. (2)(A). Pub. L. 101–624, § 1111(a)(2), substituted “1991 through 1995 crops” for “1987 through 1990 crops” and substituted “and” for “honey, and (with respect to clause (iii)(II) of subparagraph (B))” after “rice,”.

Par. (2)(B)(iii). Pub. L. 101–624, § 1111(a)(3)(A), added cl. (iii) and struck out former cl. (iii) which read as follows: “(iii)(I) any gain realized by a producer from repaying a loan for a crop of wheat, feed grains, upland cotton, rice, or honey at the rate permitted under section 107D(a)(5), 105C(a)(4), 103A(a)(5), 101A(a)(5), or 201(b)(2), respectively, of the Agricultural Act of 1949 or (II) any gain realized by a producer from repaying a loan for a crop of any other commodity at a lower level than the original loan level established under the Agricultural Act of 1949;”

Par. (2)(B)(iv). Pub. L. 101–624, § 1111(a)(3)(B), substituted “107B(c)(1) or 105B(c)(1)” for “section 107D(c)(1) or 105C(c)(1)”, and “section 107B(a)(3) or 105B(a)(3)” for “section 107D(a)(4) or 105C(a)(3)”.

Par. (2)(B)(v). Pub. L. 101–624, § 1111(a)(3)(C), added cl. (v) and struck out former cl. (v) which read as follows: “(v) any loan deficiency payment received for a crop of wheat, feed grains, upland cotton, or rice under section 107D(b), 105C(b), 103A(b), or 101A(b), respectively, of the Agricultural Act of 1949; and”.

Par. (2)(B)(vi). Pub. L. 101–624, § 1111(a)(3)(D), substituted “section 107B(f), 105B(f), 103B(f), or 101B(f)” for “section 107D(g), 105C(g), 103A(g), or 101A(g)”.

Par. (5)(B)(ii)(III). Pub. L. 101–624, § 1111(e), added subcl. (III).

Par. (5)(B)(iii). Pub. L. 101–624, § 1111(c), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “Such regulations shall provide that, with respect to any married couple, the husband and wife shall be considered to be one person, except that any married couple consisting of spouses who, prior to their marriage, were separately engaged in unrelated farming operations, each spouse shall be treated as a separate person with respect to the farming operation brought into the marriage by such spouse so long as such operation remains as a separate farming operation, for the purposes of the application of the limitations under this section.”

1989—Par. (5)(D). Pub. L. 101–217, § 2, amended subpar. (D) generally, striking out cl. (i) designation, substituting “Any” for “Except as provided in clause (ii), any” and “ineligible to receive any payment specified in paragraph (1) or (2) or subtitle D of title XII with respect to such land” for “considered the same person as the landlord”, and struck out cls. (ii) and (iii) which read as follows:

“(ii) A tenant that because of any act or failure to act would otherwise be considered the same person as the landlord under clause (i) shall not be considered the same person as the landlord if the Secretary has at any time made a determination, for purposes of this section, regarding the number of persons with respect to the tenant’s operation on such land for the 1989 crop year and the landlord did not consent to or knowingly participate in such act or failure to act.

“(iii) Any tenant that would be considered to be the same person as the landlord but for the operation of clause (ii) shall be eligible to receive any payment specified in paragraph (1) or (2) or subtitle D of title XII with respect to such land only to the extent that the tenant would be eligible for such payments if the tenant were to be considered the same person as the landlord under the regulations in place immediately prior to the enactment of this subparagraph.”

Pub. L. 101–217, § 1, in temporarily amending subpar. (D) generally, designated existing provisions as cl. (i) and added cls. (ii) and (iii). See Effective and Termination Dates of 1989 Amendment note below.

1987—Par. (1). Pub. L. 100–203, § 1301(a)(1), substituted “Subject to sections 1308–1 through 1308–3 of this title, for each” for “For each”.

Par. (2)(A). Pub. L. 100–203, § 1301(a)(2)(A), substituted “Subject to sections 1308–1 through 1308–3 of this title, for each” for “For each”.

Par. (2)(C). Pub. L. 100–203, § 1307, struck out cl. (ii) designation, and struck out cl. (i) which read as follows: “The total amount of loans on a crop of honey that a person may have outstanding at any one time under the annual program established for such crop under the Agricultural Act of 1949 may not exceed $250,000 less the amount of payments, as described in paragraph (1) and subparagraphs (A) and (B) of this paragraph, received by such person for the crop year involved.”

Pub. L. 100–203, § 1301(a)(2)(B), which directed substitution of “Subject to sections 1308–1 through 1308–3 of this title, the total” for “The total” could not be executed in view of amendments by Pub. L. 100–71 and section 1307 of Pub. L. 100–203.

Pub. L. 100–71 designated existing provision as cl. (i) and added cl. (ii).

Par. (5)(A). Pub. L. 100–203, § 1303(a)(1), (2), inserted after first sentence “Such regulations shall incorporate the provisions in subparagraphs (B) through (E) of this paragraph, paragraphs (6) and (7), and sections 1308–1 through 1308–3 of this title” and struck out at end “Such regulations shall provide that the term ‘person’ does not include any cooperative association of producers that markets commodities for producers with respect to the commodities so marketed for producers.”

Par. (5)(B). Pub. L. 100–203, § 1303(a)(2), (3), added subpar. (B) and redesignated former subpar. (B) as (C).

Par. (5)(C). Pub. L. 100–203, § 1303(a)(3), redesignated subpar. (B) as (C).

Par. (5)(D), (E). Pub. L. 100–203, § 1303(a)(4), added subpars. (D) and (E).

Par. (6). Pub. L. 100–203, § 1303(b), amended par. (6) generally. Prior to amendment, par. (6) read as follows: “The provisions of this section that limit payments to any person shall not be applicable to lands or animals owned by States, political subdivisions, or agencies thereof, so long as such lands are farmed or animals are husbanded primarily in the direct furtherance of a public function, as determined by the Secretary.”

Par. (7). Pub. L. 100–203, § 1305(c), added par. (7).

1986—Par. (1). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), in temporarily amending par. (1) generally, substituted provision limiting, for each of the 1987 through 1990 crops, the total amount of deficiency payments, excluding deficiency payments described in par. (2)(B)(I)(iv) and land diversion payments that any one person be entitled to as not to exceed $50,000 for provision limiting, for each of the 1986 through 1990 crops, the total amount of payments, excluding disaster payments, that any one person be entitled to as not to exceed $50,000. See Effective and Termination Dates of 1986 Amendment note below.

Par. (2). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), in temporarily amending par. (2) generally, designated existing provision as subpar. (A), and in subpar. (A) as so designated, substituted provision limiting, for each of the 1987 through 1990 crops, the total amount of payments set forth in subpar. (B) that any one person be entitled to as not to exceed $250,000 and inserting honey as an eligible crop for provision limiting, for each of the 1986 through 1990 crops, the total amount of disaster payments not any one person be entitled to as not to exceed $100,000, and added subpars. (B) and (C). See Effective and Termination Dates of 1986 Amendment note below.

Par. (3). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), temporarily substituted provision authorizing the Secretary, if he determines that a limitation will have an adverse effect on a program, to adjust upward such limitation as appropriate or necessary for provision specifying what is not included within the term “payments” as used in this section. See Effective and Termination Dates of 1986 Amendment note below.

Par. (5)(A). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(2), temporarily inserted provision that the term “person” not include any cooperative association of producers that markets commodities for producers with respect to the commodities so marketed for producers. See Effective and Termination Dates of 1986 Amendment note below.

Par. (6). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(3), temporarily substituted “lands or animals owned” for “lands owned” and inserted “or animals are husbanded”. See Effective and Termination Dates of 1986 Amendment note below.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–334, title I, § 1703(b), Dec. 20, 2018, 132 Stat. 4526, provided that: “The amendments made by this section [amending this section] shall apply beginning with the 2019 crop year.”

Effective Date of 2014 Amendment

Pub. L. 113–79, title I, § 1603(c), Feb. 7, 2014, 128 Stat. 706, provided that: “The amendments made by this section [amending this section and section 1308–3 of this title] shall apply beginning with the 2014 crop year.”

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.

Effective and Termination Dates of 1989 Amendment

Pub. L. 101–217, § 1, Dec. 11, 1989, 103 Stat. 1857, provided that the amendment made by that section is effective only for the 1989 crops.

Pub. L. 101–217, § 2, Dec. 11, 1989, 103 Stat. 1857, as amended by Pub. L. 101–624, title XI, § 1111(i), Nov. 28, 1990, 104 Stat. 3500, provided that the amendment made by that section is effective beginning with the 1990 crops.

Effective Date of 1987 Amendment

Pub. L. 100–203, title I, §§ 1301(a), 1303, Dec. 22, 1987, 101 Stat. 1330–12, 1330–16, provided that the amendments made by sections 1301(a)(1), (2) and 1303 of Pub. L. 100–203 are effective beginning with 1989 crops.

Effective and Termination Dates of 1986 Amendment

Pub. L. 99–500, § 108(a), Oct. 18, 1986, 100 Stat. 1783–346, and Pub. L. 99–591, § 108(a), Oct. 30, 1986, 100 Stat. 3341–346, provided that the amendment made by Pub. L. 99–500 and Pub. L. 99–591 is effective with respect to each of the 1987 through 1990 crops.

Pub. L. 99–500, § 108(b), Oct. 18, 1986, 100 Stat. 1783–347, and Pub. L. 99–591, § 108(b), Oct. 30, 1986, 100 Stat. 3341–347, provided that: “The amendments made by subsection (a) [amending this section] shall not apply with respect to any payment or loan received under any agreement or contract made before the date of enactment of this Act [Oct. 18, 1986].”

Transition Provisions

Pub. L. 110–234, title I, § 1603(h), May 22, 2008, 122 Stat. 1012, and Pub. L. 110–246, § 4(a), title I, § 1603(h), June 18, 2008, 122 Stat. 1664, 1740, provided that: “Section 1001, 1001A, and 1001B of the Food Security Act of 1985 (7 U.S.C. 1308, 1308–1, 1308–2), as in effect on September 30, 2007, shall continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts.”

[For definition of “covered commodity” as used in section 1603(h) of Pub. L. 110–246, set out above, see section 8702 of this title.]

[Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.]

Pub. L. 107–171, title I, § 1603(d), May 13, 2002, 116 Stat. 215, provided that: “Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as in effect on the day before the date of the enactment of this Act [May 13, 2002], shall continue to apply with respect to the 2001 crop of any covered commodity.”

Equitable Relief

Pub. L. 101–217, § 3, Dec. 11, 1989, 103 Stat. 1858, provided that: “Nothing in this Act [amending this section and enacting provisions set out as notes under this section] shall be construed in any way to limit the authority of the Secretary of Agriculture to provide equitable relief under any provision of law.”

Payment Provisions Education Program

Pub. L. 100–203, title I, § 1304(a), Dec. 22, 1987, 101 Stat. 1330–17, provided that: In general.—The Secretary of Agriculture shall implement a payment provisions education program for appropriate personnel of the Department of Agriculture and members and other personnel of local, county, and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), for the purpose of fostering more effective and uniform application of the payment limitations and restrictions under sections 1001 through 1001C of the Food Security Act of 1985 [sections 1808 to 1308–3 of this title]. Training.—The education program shall provide training to such personnel in the fair, accurate, and uniform application to individual farming operations of the provisions of law and regulation relating to the payment provisions of sections 1001 through 1001C of the Food Security Act of 1985. Particular emphasis shall be given to the changes in the law made by sections 1301, 1302, and 1303 of this Act [enacting section 1308–1 of this title, amending this section, and enacting provisions set out as notes under this section and section 1308–1 of this title]. Implementation.—The education program shall be fully implemented, and the training completed, not later than 30 days after the date final regulations are issued to carry out the amendments made by this subtitle [enacting sections 1308–1 to 1308–3 of this title and amending this section and section 1308–1 of this title]. Commodity Credit Corporation.—The Secretary shall carry out the program provided under this subsection through the Commodity Credit Corporation.”

Regulations To Carry Out 1987 Amendments; Transition Rules; Equitable Adjustments

Pub. L. 100–203, title I, § 1305(a), (b), Dec. 22, 1987, 101 Stat. 1330–18, provided that:Regulations.— Issuance.—The Secretary of Agriculture shall issue— proposed regulations to carry out the amendments made by this subtitle [enacting sections 1308–1 to 1308–3 of this title and amending this section and section 1308–1 of this title] not later than April 1, 1988; and final regulations to carry out such amendments not later than August 1, 1988. Field instructions.—Any field instructions relating to, or other supplemental clarifications of, the regulations issued under sections 1001 through 1001C of the Food Security Act of 1985 [sections 1308 to 1308–3 of this title] shall not be used in resolving issues involved in the application of the payment limitations or restrictions under such sections or regulations to individuals, other entities, or farming operations until copies of the publication are made available to the public. Allowance for Equitable Reorganizations.—To allow for the equitable reorganization of farming operations to conform to the limitations and restrictions contained in the amendments made to the Food Security Act of 1985 by this subtitle [enacting sections 1308–1 to 1308–3 of this title and amending this section and section 1308–1 of this title] in cases in which the application of such limitations and restrictions will reduce payments to the farming operation (as determined by the Secretary), the Secretary may waive the application of the substantive change rule under section 1001(5)(E) [section 1308(5)(E) of this title], as added by section 1303 of this Act, or any regulation of the Secretary containing a comparable rule, to any reorganization applied for prior to the final date when producers are eligible to enter into contracts to participate in the commodity programs established for the 1989 crop year, to the extent the Secretary determines appropriate to facilitate any such equitable reorganizations that does not increase such payments.”

Conservation Reserve Application

Pub. L. 100–203, title I, § 1305(d), Dec. 22, 1987, 101 Stat. 1330–18, provided that: “Notwithstanding [former] section 1234(f)(2) of the Food Security Act of 1985 ([former] 16 U.S.C. 3834(f)), paragraphs (5) through (7) of section 1001 [section 1308(5)–(7) of this title], as amended by this subtitle, and sections 1001A through 1001C, of the Food Security Act of 1985 [sections 1308–1 to 1308–3 of this title] shall apply to the conservation reserve program under subtitle D of title XII of such Act (16 U.S.C. 3830 et seq.) with respect to rental payments to persons under contracts entered into after the date of the enactment of this Act [Dec. 22, 1987], except with respect to landlords that receive cash rent, or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land.”

Revision of Regulations

Pub. L. 99–500, § 108(c), Oct. 18, 1986, 100 Stat. 1783–347, and Pub. L. 99–591, § 108(c), Oct. 30, 1986, 100 Stat. 3341–347, provided that: The Secretary of Agriculture shall review the regulations in effect on the date of enactment of this Act [Oct. 18, 1986] that define ‘person’ under section 1001 of the Food Security Act of 1985 [this section] and related regulations in effect on such date otherwise affecting the payment limitations under such section, to determine ways in which such regulations can be revised to better ensure the fair and reasonable application of limitations and eliminate fraud and abuse in the application of such payment limitations. The Secretary also shall review the amendments to section 1001 of the Food Security Act of 1985 made by this section. Based on the reviews conducted under paragraph (1), the Secretary of Agriculture shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives, not later than March 1, 1987, a report on such reviews and— with respect to the matters reviewed under paragraph (1)(A), proposed regulations or amendments to regulations, to take effect not earlier than October 1, 1987, that will meet the object with respect to limitations specified in paragraph (1)(A); and with respect to the matters reviewed under paragraph (1)(B), recommendations on legislative changes to section 1001 of the Food Security Act of 1985 that the Secretary determines are necessary or appropriate.”

Separate Person Status Among Family Members

Pub. L. 99–198 (last sentence), as added by Pub. L. 99–500, § 101(a) [title VI, § 636], Oct. 18, 1986, 100 Stat. 1783, 1783–34, and Pub. L. 99–591, § 101(a) [title VI, § 636], Oct. 30, 1986, 100 Stat. 3341, 3341–34, provided that: “Effective for each of the 1987 through 1990 crops, the Secretary may not deny a person status as a separate person solely on the ground that a family member cosigns for, or makes a loan to, such person and leases, loans, or gives such person equipment, land or labor, if such family members were organized as separate units prior to December 31, 1985.”

§1308–1. Notification of interests; payments limited to active farmers

7 U.S.C. § 1308–1

(a)
Notification of interests— To facilitate administration of section 1308 of this title and this section, each person or legal entity receiving payments described in subsections (b) and (c) of section 1308 of this title as a separate person or legal entity shall separately provide to the Secretary, at such times and in such manner as prescribed by the Secretary
(1)
the name and social security number of each person, or the name and taxpayer identification number of each legal entity, that holds or acquires an ownership interest in the separate person or legal entity; and
(2)
the name and taxpayer identification number of each legal entity in which the person or legal entity holds an ownership interest.
(b)
Actively engaged—
(1)
In general— To be eligible to receive a payment described in subsection (b) or (c) of section 1308 of this title, a person or legal entity shall be actively engaged in farming with respect to a farming operation as provided in this subsection or subsection (c).
(2)
Classes actively engaged— Except as provided in subsections (c) and (d)
(A)
a person (including a person participating in a farming operation as a partner in a qualified pass-through entity, a grantor of a revocable trust, or a participant in a similar entity, as determined by the Secretary) shall be considered to be actively engaged in farming with respect to a farming operation if—
(i)
the person makes a significant contribution (based on the total value of the farming operation) to the farming operation of—
(I)
capital, equipment, or land; and
(II)
personal labor or active personal management;
(ii)
the person’s share of the profits or losses from the farming operation is commensurate with the contributions of the person to the farming operation; and
(iii)
the contributions of the person are at risk;
(B)
a legal entity that is a corporation, joint stock company, association, limited partnership, charitable organization, or other similar entity determined by the Secretary (including any such legal entity participating in the farming operation as a partner in a qualified pass-through entity, a grantor of a revocable trust, or as a participant in a similar legal entity as determined by the Secretary) shall be considered as actively engaged in farming with respect to a farming operation if—
(i)
the legal entity separately makes a significant contribution (based on the total value of the farming operation) of capital, equipment, or land;
(ii)
the stockholders or members collectively make a significant contribution of personal labor or active personal management to the operation; and
(iii)
the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity;
(C)
if a legal entity that is a qualified pass-through entity or a similar entity, as determined by the Secretary, separately makes a significant contribution (based on the total value of the farming operation involved) of capital, equipment, or land, and the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management shall be considered to be actively engaged in farming with respect to the farming operation involved; and
(D)
in making determinations under this subsection regarding equipment and personal labor, the Secretary shall take into consideration the equipment and personal labor normally and customarily provided by farm operators in the area involved to produce program crops.
(c)
Special classes actively engaged—
(1)
Landowner— A person or legal entity that is a landowner contributing the owned land to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if—
(A)
the landowner receives rent or income for the use of the land based on the production on the land or the operating results of the operation; and
(B)
the person or legal entity meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(2)
Adult family member— If a majority of the participants in a farming operation are family members, an adult family member shall be considered to be actively engaged in farming with respect to the farming operation if the person
(A)
makes a significant contribution, based on the total value of the farming operation, of active personal management or personal labor; and
(B)
with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(3)
Sharecropper— A sharecropper who makes a significant contribution of personal labor to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if the contribution meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(4)
Growers of hybrid seed— In determining whether a person or legal entity growing hybrid seed under contract shall be considered to be actively engaged in farming, the Secretary shall not take into consideration the existence of a hybrid seed contract.
(5)
Custom farming services—
(A)
In general— A person or legal entity receiving custom farming services shall be considered separately eligible for payment limitation purposes if the person or legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection.
(B)
Prohibition— No other rules with respect to custom farming shall apply.
(6)
Spouse— If 1 spouse (or estate of a deceased spouse) is determined to be actively engaged, the other spouse shall be determined to have met the requirements of subsection (b)(2)(A)(i)(II).
(d)
Classes not actively engaged—
(1)
Cash rent landlord— A landlord contributing land to a farming operation shall not be considered to be actively engaged in farming with respect to the farming operation if the landlord receives cash rent, or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land.
(2)
Other persons and legal entities— Any other person or legal entity that the Secretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation.
Notes, amendments, and revision history

(Pub. L. 99–198, title X, § 1001A, as added and amended Pub. L. 100–203, title I, §§ 1301(a)(3), 1302, Dec. 22, 1987, 101 Stat. 1330–12, 1330–14; Pub. L. 101–624, title XI, § 1111(d), (f), Nov. 28, 1990, 104 Stat. 3498, 3499; Pub. L. 102–237, title I, § 118(c), Dec. 13, 1991, 105 Stat. 1841; Pub. L. 104–127, title I, § 115(c)(1), Apr. 4, 1996, 110 Stat. 903; Pub. L. 107–171, title I, § 1603(c)(1), May 13, 2002, 116 Stat. 215; Pub. L. 110–234, title I, § 1603(c), (d), May 22, 2008, 122 Stat. 1007, 1008; Pub. L. 110–246, § 4(a), title I, § 1603(c), (d), June 18, 2008, 122 Stat. 1664, 1735, 1736; Pub. L. 119–21, title I, § 10306(c), July 4, 2025, 139 Stat. 91.)

Editorial Notes

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Amendments

2025—Subsec. (b)(2)(A), (B). Pub. L. 119–21, § 10306(c)(1), substituted “a qualified pass-through entity” for “a general partnership, a participant in a joint venture” in introductory provisions.

Subsec. (b)(2)(C). Pub. L. 119–21, § 10306(c)(2), substituted “a qualified pass-through entity or a similar entity” for “a general partnership, joint venture, or similar entity”.

2008—Pub. L. 110–246, § 1603(c)(1), substituted “Notification of interests” for “Prevention of creation of entities to qualify as separate persons” in section catchline.

Subsec. (a). Pub. L. 110–246, § 1603(c)(2), added subsec. (a) and struck out former subsec. (a) which related to prevention of use of multiple legal entities to avoid effective application of payment limitations under section 1308 of this title.

Subsecs. (b) to (d). Pub. L. 110–246, § 1603(d), added subsecs. (b) to (d) and struck out former subsec. (b) which related to requirement that a person be an individual or entity described in former section 1308(e)(2)(A) of this title and actively engaged in farming with respect to a particular farming operation to be separately eligible for farm program payments with respect to that operation.

2002—Subsec. (a)(1). Pub. L. 107–171, § 1603(c)(1), substituted “section 1308(e)(2)(A) of this title” for “section 1308(5)(B)(i) of this title” and “section 1308(e)(2)(A)(ii) of this title” for “section 1308(5)(B)(i)(II) of this title”.

Subsec. (b)(1). Pub. L. 107–171, § 1603(c)(1)(B), substituted “section 1308(e)(2)(A) of this title” for “section 1308(5)(B)(i) of this title”.

Subsec. (b)(2)(B). Pub. L. 107–171, § 1603(c)(1)(A), substituted “section 1308(e)(2)(A)(ii) of this title” for “section 1308(5)(B)(i)(II) of this title”.

1996—Subsec. (a)(1). Pub. L. 104–127, § 115(c)(1)(A), struck out “under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)” before “may not also hold”.

Subsec. (b)(1). Pub. L. 104–127, § 115(c)(1)(B), struck out “under the Agricultural Act of 1949” before “with respect to a particular”.

1991—Subsec. (a)(2). Pub. L. 102–237 struck out “0 to” after “less than”.

1990—Subsec. (a)(2). Pub. L. 101–624, § 1111(f), substituted “0 to 10 percent” for “10 percent”.

Subsec. (b)(6). Pub. L. 101–624, § 1111(d), added par. (6).

1987—Subsec. (b). Pub. L. 100–203, § 1302, added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.

Effective Date of 1987 Amendment

Pub. L. 100–203, title I, § 1302, Dec. 22, 1987, 101 Stat. 1330–14, provided that the amendment made by that section is effective beginning with the 1989 crops.

Effective Date

Pub. L. 100–203, title I, § 1301(a), Dec. 22, 1987, 101 Stat. 1330–12, provided that this section is effective beginning with the 1989 crops.

Transition Provisions

Section, as in effect on Sept. 30, 2007, to continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts, see section 1603(h) of Pub. L. 110–246, set out as a note under section 1308 of this title.

Rulemaking Related to Significant Contribution for Active Personal Management

Pub. L. 113–79, title I, § 1604, Feb. 7, 2014, 128 Stat. 706, provided that: Regulations Required.—Within 180 days after the date of the enactment of this Act [Feb. 7, 2014], the Secretary shall promulgate, with an opportunity for notice and comment, regulations— to define the term ‘significant contribution of active personal management’ for purposes of section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1); and if the Secretary determines it is appropriate, to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when a significant contribution of active personal management is the basis used to meet the requirement of being actively engaged in farming under section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) by an individual or entity. Considerations.—In promulgating the regulations required under subsection (a), the Secretary shall consider— the size, nature, and management requirements of each type of farming operation; the changing nature of active personal management due to advancements of farming operations; and the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation. Family Farms.—The Secretary shall not apply the regulations promulgated pursuant to subsection (a) to individuals or entities comprised solely of family members (as that term is defined in section 1001(a)(2) of the Food Security Act of 1985 (7 U.S.C. 1308(a)(2))). Monitoring.—The regulations promulgated pursuant to subsection (a) shall include a plan for monitoring the status of compliance reviews for whether a person or entity is in compliance with the regulations. Paperwork Reduction.—In order to conserve Federal resources and prevent unnecessary paperwork burdens, the Secretary shall ensure that any additional paperwork required as a result of the regulations promulgated pursuant to subsection (a) be limited to those persons who are subject to such regulations. Relation to Other Requirements.—Nothing in this section may be construed to authorize the Secretary to alter, directly or indirectly, existing regulations for other requirements in section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1). Effective Date.—The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 2015 crop year.”

§1308–2. Denial of program benefits

7 U.S.C. § 1308–2

(a)
2-year denial of program benefits— A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) of section 1308 of this title for the crop year, and the succeeding crop year, in which the Secretary determines that the person or legal entity—
(1)
failed to comply with section 1308–1(b) of this title and adopted or participated in adopting a scheme or device to evade the application of section 1308, 1308–1, or 1308–3 of this title; or
(2)
intentionally concealed the interest of the person or legal entity in any farm or legal entity engaged in farming.
(b)
Extended ineligibility— If the Secretary determines that a person or legal entity, for the benefit of the person or legal entity or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of a fraudulent document, failed to disclose material information relevant to the administration of sections 1308 through 1308–5 of this title, or committed other equally serious actions (as identified in regulations issued by the Secretary), the Secretary may for a period not to exceed 5 crop years deny the issuance of payments to the person or legal entity.
(c)
Pro rata denial—
(1)
In general— Payments otherwise owed to a person or legal entity described in subsections (a) or (b) shall be denied in a pro rata manner based on the ownership interest of the person or legal entity in a farm.
(2)
Cash rent tenant— Payments otherwise payable to a person or legal entity shall be denied in a pro rata manner if the person or legal entity is a cash rent tenant on a farm owned or under the control of a person or legal entity with respect to which a determination has been made under subsection (a) or (b).
(d)
Joint and several liability— Any legal entity (including qualified pass-through entities) and any member of any legal entity determined to have knowingly participated in a scheme or device to evade, or that has the purpose of evading, sections 1308, 1308–1, or 1308–3 of this title shall be jointly and severally liable for any amounts that are payable to the Secretary as the result of the scheme or device (including amounts necessary to recover those amounts).
(e)
Release— The Secretary may partially or fully release from liability any person or legal entity who cooperates with the Secretary in enforcing sections 1308, 1308–1, and 1308–3 of this title, and this section.
Notes, amendments, and revision history

(Pub. L. 99–198, title X, § 1001B, as added Pub. L. 100–203, title I, § 1304(b), Dec. 22, 1987, 101 Stat. 1330–17; amended Pub. L. 107–171, title I, § 1603(c)(2), May 13, 2002, 116 Stat. 215; Pub. L. 110–234, title I, § 1603(e), May 22, 2008, 122 Stat. 1010; Pub. L. 110–246, § 4(a), title I, § 1603(e), June 18, 2008, 122 Stat. 1664, 1738; Pub. L. 119–21, title I, § 10306(d), July 4, 2025, 139 Stat. 91.)

Editorial Notes

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Amendments

2025—Subsec. (d). Pub. L. 119–21 substituted “qualified pass-through entities” for “partnerships and joint ventures”.

2008—Pub. L. 110–246, § 1603(e), amended section generally. Prior to amendment, text read as follows: “If the Secretary of Agriculture determines that any person has adopted a scheme or device to evade, or that has the purpose of evading, section 1308, 1308–1, or 1308–3 of this title, such person shall be ineligible to receive farm program payments (as described in subsections (b), (c), and (d) of section 1308 of this title as being subject to limitation) applicable to the crop year for which such scheme or device was adopted and the succeeding crop year.”

2002—Pub. L. 107–171 substituted “as described in subsections (b), (c), and (d) of section 1308 of this title” for “as described in paragraphs (1) and (2) of section 1308 of this title”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date

Pub. L. 100–203, title I, § 1304(b), Dec. 22, 1987, 101 Stat. 1330–17, provided that this section is effective beginning with the 1989 crops.

Transition Provisions

Section, as in effect on Sept. 30, 2007, to continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts, see section 1603(h) of Pub. L. 110–246, set out as a note under section 1308 of this title.

§1308–3. Foreign persons made ineligible for program benefits

7 U.S.C. § 1308–3

(a)
In general— Any person who is not a citizen of the United States or an alien lawfully admitted into the United States for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) shall be ineligible to receive any type of loans or payments made available under title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.], the Agricultural Market Transition Act [7 U.S.C. 7201 et seq.], the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.),1 or under any contract entered into under title XII [16 U.S.C. 3801 et seq.], with respect to any commodity produced, or land set aside from production, on a farm that is owned or operated by such person, unless such person is an individual who is providing land, capital, and a substantial amount of personal labor in the production of crops on such farm.
(b)
Corporations or other entities— For purposes of subsection (a), a corporation or other entity shall be considered a person that is ineligible for production adjustment payments, price support program loans, payments, or benefits if more than 10 percent of the beneficial ownership of the entity is held by persons who are not citizens of the United States or aliens lawfully admitted into the United States for permanent residence under the Immigration and Nationality Act [8 U.S.C. 1101 et seq.], unless such persons provide a substantial amount of personal labor in the production of crops on such farm. Notwithstanding the foregoing provisions of this subsection, with respect to an entity that is determined to be ineligible to receive such payments, loans, or other benefits, the Secretary may make payments, loans, and other benefits in an amount determined by the Secretary to be representative of the percentage interests of the entity that is owned by citizens of the United States and aliens lawfully admitted into the United States for permanent residence under the Immigration and Nationality Act.
(c)
Prospective application— No person shall become ineligible under this section for production adjustment payments, price support program loans, payments or benefits as the result of the production of a crop of an agricultural commodity planted, or commodity program or conservation reserve contract entered into, before December 22, 1987.

Footnotes

  1. 1 See References in Text note below.
Notes, amendments, and revision history

(Pub. L. 99–198, title X, § 1001C, as added Pub. L. 100–203, title I, § 1306, Dec. 22, 1987, 101 Stat. 1330–19; amended Pub. L. 101–624, title XI, § 1111(b), Nov. 28, 1990, 104 Stat. 3498; Pub. L. 103–66, title I, § 1101(b)(3)(B), Aug. 10, 1993, 107 Stat. 314; Pub. L. 104–127, title I, § 115(c)(2), Apr. 4, 1996, 110 Stat. 903; Pub. L. 107–171, title I, § 1603(c)(3), May 13, 2002, 116 Stat. 215; Pub. L. 110–234, title I, § 1603(a), May 22, 2008, 122 Stat. 1002; Pub. L. 110–246, § 4(a), title I, § 1603(a), June 18, 2008, 122 Stat. 1664, 1730; Pub. L. 113–79, title I, § 1603(b)(3), Feb. 7, 2014, 128 Stat. 706.)

Editorial Notes

References in Text

The Immigration and Nationality Act, referred to in subsecs. (a) and (b), is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables.

The Food, Conservation, and Energy Act of 2008, referred to in subsec. (a), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables.

The Agricultural Act of 2014, referred to in subsec. (a), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. For complete classification of this Act to the Code, see short title note set out under section 9001 of this title and Tables.

The Agricultural Market Transition Act, referred to in subsec. (a), is title I of Pub. L. 104–127, Apr. 4, 1996, 110 Stat. 896, which is classified principally to chapter 100 (§ 7201 et seq.) of this title. For complete classification of this Act to the Code, see References in Text note set out under section 7201 of this title and Tables.

The Commodity Credit Corporation Charter Act, referred to in subsec. (a), is act June 29, 1948, ch. 704, 62 Stat. 1070, which is classified generally to subchapter II (§ 714 et seq.) of chapter 15 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 714 of Title 15 and Tables.

The Food Security Act of 1985, referred to in subsec. (a), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Title XII of the Act is classified principally to chapter 58 (§ 3801 et seq.) of Title 16, Conservation. Subtitle D of title XII of the Act is classified generally to subchapter IV (§ 3830 et seq.) of chapter 58 of Title 16. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Amendments

2014—Subsec. (a). Pub. L. 113–79 inserted “title I of the Agricultural Act of 2014,” before “the Agricultural Market Transition Act”.

2008—Subsec. (a). Pub. L. 110–246, § 1603(a), substituted “Food, Conservation, and Energy Act of 2008” for “Farm Security and Rural Investment Act of 2002”.

2002—Subsec. (a). Pub. L. 107–171 inserted “title I of the Farm Security and Rural Investment Act of 2002,” after “made available under”.

1996—Subsec. (a). Pub. L. 104–127 substituted “Any person” for “For each of the 1991 through 1997 crops, any person”, substituted “loans or payments made available under the Agricultural Market Transition Act,” for “production adjustment payments, price support program loans, payments, or benefits made available under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),”, and struck out “during the 1989 through 1997 crop years” before “, with respect to any commodity produced”.

1993—Subsec. (a). Pub. L. 103–66 substituted “1997” for “1995” in two places.

1990—Subsec. (a). Pub. L. 101–624 substituted “1991 through 1995 crops” for “1989 and 1990 crops” and inserted “, or under any contract entered into under title XII during the 1989 through 1995 crop years,” after “(16 U.S.C. 3831 et seq.)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Amendment by Pub. L. 113–79 applicable beginning with the 2014 crop year, see section 1603(c) of Pub. L. 113–79, set out as a note under section 1308 of this title.

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.

Effective Date

Pub. L. 100–203, title I, § 1306, Dec. 22, 1987, 101 Stat. 1330–19, provided that this section is effective beginning with the 1989 crops.

§1308–3a. Adjusted gross income limitation

7 U.S.C. § 1308–3a

(a)
Definitions—
(1)
Average adjusted gross income— In this section, the term “average adjusted gross income”, with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary.
(2)
Special rules for certain persons and legal entities— In the case of a legal entity that is not required to file a Federal income tax return or a person or legal entity that did not have taxable income in 1 or more of the taxable years used to determine the average under paragraph (1), the Secretary shall provide, by regulation, a method for determining the average adjusted gross income of the person or legal entity for purposes of this section.
(3)
Allocation of income— On the request of any person filing a joint tax return, the Secretary shall provide for the allocation of average adjusted gross income among the persons filing the return if—
(A)
the person provides a certified statement by a certified public accountant or attorney that specifies the method by which the average adjusted gross income would have been declared and reported had the persons filed 2 separate returns; and
(B)
the Secretary determines that the method described in the statement is consistent with the information supporting the filed joint tax return.
(b)
Limitations on commodity and conservation programs—
(1)
Limitation— Notwithstanding any other provision of law, subject to paragraphs (3) and (4), a person or legal entity shall not be eligible to receive any benefit described in paragraph (2) during a crop, fiscal, or program year, as appropriate, if the average adjusted gross income of the person or legal entity exceeds $900,000.
(2)
Covered benefits— Paragraph (1) applies with respect to the following:
(A)
A payment or benefit under subtitle A or E of title I of the Agricultural Act of 2014 [7 U.S.C. 9011 et seq., 9081].
(B)
A marketing loan gain or loan deficiency payment under subtitle B of title I of the Agricultural Act of 2014 [7 U.S.C. 9031 et seq.].
(C)
Starting with fiscal year 2015, a payment or benefit under title II of the Agriculture Improvement Act of 2018, title II of the Agricultural Act of 2014, title II of the Farm Security and Rural Investment Act of 2002, title II of the Food, Conservation, and Energy Act of 2008, or title XII of the Food Security Act of 1985 [16 U.S.C. 3801 et seq.].
(D)
A payment or benefit under section 1524(b) of this title.
(E)
A payment or benefit under section 7333 of this title.
(3)
Waiver— The Secretary may waive the limitation established by paragraph (1) with respect to a payment pursuant to a covered benefit described in paragraph (2)(C), on a case-by-case basis, if the Secretary determines that environmentally sensitive land of special significance would be protected as a result of such waiver.
(4)
Exception for certain operations—
(A)
Definitions— In this paragraph:
(i)
Excepted payment or benefit— The term “excepted payment or benefit” means—
(I)
a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.);
(II)
a payment or benefit under section 7333 of this title; and
(III)
a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024.
(ii)
Farming, ranching, or silviculture activities— The term “farming, ranching, or silviculture activities” includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary.
(B)
Exception— In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.
(c)
Enforcement—
(1)
In general— To comply with subsection (b), at least once every 3 years a person or legal entity shall provide to the Secretary
(A)
a certification by a certified public accountant or another third party that is acceptable to the Secretary that the average adjusted gross income of the person or legal entity does not exceed the applicable limitation specified in that subsection; or
(B)
information and documentation regarding the average adjusted gross income of the person or legal entity through other procedures established by the Secretary.
(2)
Denial of program benefits— If the Secretary determines that a person or legal entity has failed to comply with this section, the Secretary shall deny the issuance of applicable payments and benefits specified in subsection (b)(2) to the person or legal entity, under similar terms and conditions as described in section 1308–2 of this title.
(3)
Audit— The Secretary shall establish statistically valid procedures under which the Secretary shall conduct targeted audits of such persons or legal entities as the Secretary determines are most likely to exceed the limitations under subsection (b).
(d)
Commensurate reduction— In the case of a payment or benefit described in subsection (b)(2) made in a crop, program, or fiscal year, as appropriate, to an entity, the amount of the payment or benefit shall be reduced by an amount that is commensurate with the direct and indirect ownership interest in the entity of each person who has an average adjusted gross income in excess of the applicable limitation specified in subsection (b).
Notes, amendments, and revision history

(Pub. L. 99–198, title X, § 1001D, as added Pub. L. 107–171, title I, § 1604(2), May 13, 2002, 116 Stat. 215; amended Pub. L. 110–234, title I, § 1604(a), May 22, 2008, 122 Stat. 1012; Pub. L. 110–246, § 4(a), title I, § 1604(a), June 18, 2008, 122 Stat. 1664, 1740; Pub. L. 113–79, title I, § 1605(a)–(e), Feb. 7, 2014, 128 Stat. 707, 708; Pub. L. 115–334, title I, § 1704(a), (b), Dec. 20, 2018, 132 Stat. 4526; Pub. L. 119–21, title I, §§ 10306(e), 10308, July 4, 2025, 139 Stat. 91, 92.)

Editorial Notes

References in Text

The Agricultural Act of 2014, referred to in subsec. (b)(2)(A) to (C), (4)(A)(i)(I), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Subtitles A, B, and E of title I of the Act are classified principally to subchapter I (§ 9011 et seq.) and generally to subchapters II (§ 9031 et seq.) and IV (§ 9081), respectively, of chapter 115 of this title. Title II of the Act enacted, amended, and repealed numerous sections and provisions set out as notes in Title 16, Conservation, and Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables.

The Agriculture Improvement Act of 2018, referred to in subsec. (b)(2)(C), is Pub. L. 115–334, Dec. 20, 2018, 132 Stat. 4490. Title II of the Act enacted, amended, and repealed numerous sections and provisions set out as notes in this title, Title 16, Conservation, Title 33, Navigation and Navigable Waters, and Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title of 2018 Amendment note set out under section 9001 of this title and Tables.

The Farm Security and Rural Investment Act of 2002, referred to in subsec. (b)(2)(C), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134. Title II of the Act enacted, amended, and repealed numerous sections and provisions set out as notes in this title, Title 16, Conservation, and Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 7901 of this title and Tables.

The Food, Conservation, and Energy Act of 2008, referred to in subsec. (b)(2)(C), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title II of the Act enacted, amended, and repealed numerous sections and provisions set out as notes in this title, Title 16, Conservation, and Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables.

The Food Security Act of 1985, referred to in subsec. (b)(2)(C), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Title XII of the Act is classified principally to chapter 58 (§ 3801 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables.

Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.

Prior Provisions

A prior section 1001D of Pub. L. 99–198 was renumbered section 1001E and is classified to section 1308–4 of this title.

Amendments

2025—Subsec. (b)(1). Pub. L. 119–21, § 10308(1), substituted “paragraphs (3) and (4)” for “paragraph (3)”.

Subsec. (b)(4). Pub. L. 119–21, § 10308(2), added par. (4).

Subsec. (d). Pub. L. 119–21, § 10306(e), struck out “, general partnership, or joint venture” after “entity” in two places.

2018—Subsec. (b)(1). Pub. L. 115–334, § 1704(b), inserted “subject to paragraph (3),” after “provision of law,”.

Subsec. (b)(2)(C). Pub. L. 115–334, § 1704(a)(1), inserted “title II of the Agriculture Improvement Act of 2018,” after “under”.

Subsec. (b)(3). Pub. L. 115–334, § 1704(a)(2), added par. (3).

2014—Subsec. (a)(1). Pub. L. 113–79, § 1605(b), amended par. (1) generally. Prior to amendment, par. (1) defined “average adjusted gross income”, “average adjusted gross farm income”, and “average adjusted gross nonfarm income”.

Subsec. (a)(2). Pub. L. 113–79, § 1605(d)(1), struck out “subparagraph (A) or (B) of” after “average under” and “, the average adjusted gross farm income, and the average adjusted gross nonfarm income” after “average adjusted gross income”.

Subsec. (a)(3). Pub. L. 113–79, § 1605(d)(2), struck out “, average adjusted gross farm income, and average adjusted gross nonfarm income” after “average adjusted gross income” in two places.

Subsec. (b). Pub. L. 113–79, § 1605(a), substituted “Limitations on commodity and conservation programs” for “Limitations” in heading, added pars. (1) and (2), and struck out former pars. (1) and (2), which related to commodity programs and conservation programs, respectively.

Subsec. (c). Pub. L. 113–79, § 1605(c), redesignated subsec. (d) as (c) and struck out former subsec. (c) which related to income determination.

Subsec. (c)(1). Pub. L. 113–79, § 1605(d)(3)(A), struck out “, average adjusted gross farm income, and average adjusted gross nonfarm income” after “average adjusted gross income” in subpars. (A) and (B).

Subsec. (c)(2). Pub. L. 113–79, § 1605(d)(3)(B), substituted “subsection (b)(2)” for “paragraphs (1)(C) and (2)(B) of subsection (b)”.

Subsec. (d). Pub. L. 113–79, § 1605(d)(4), substituted “subsection (b)(2)” for “paragraphs (1)(C) and (2)(B) of subsection (b)” and struck out “, average adjusted gross farm income, or average adjusted gross nonfarm income” after “average adjusted gross income”.

Pub. L. 113–79, § 1605(c)(2), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).

Subsec. (e). Pub. L. 113–79, § 1605(e), struck out subsec. (e). Text read as follows: “This section shall apply only during the 2009 through 2012 crop, program, or fiscal years, as appropriate.”

Pub. L. 113–79, § 1605(c)(2), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).

Subsec. (f). Pub. L. 113–79, § 1605(c)(2), redesignated subsec. (f) as (e).

2008—Pub. L. 110–246, § 1604(a), amended section generally, substituting subsecs. (a) to (f) for former provisions which related to: in subsec. (a), definition of “average adjusted gross income”; in subsec. (b), limitation on benefits if average adjusted gross income exceeded $2,500,000; in subsec. (c), certification that average adjusted gross income did not exceed limitation; in subsec. (d), reduction of benefits commensurate with ownership interest; and in subsec. (e), applicability of section during 2003 through 2007 crop years.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Transition Provisions

Pub. L. 115–334, title I, § 1704(c), Dec. 20, 2018, 132 Stat. 4526, provided that: “Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day before the date of enactment of this Act [Dec. 20, 2018], shall apply with respect to the 2018 crop, fiscal, or program year, as appropriate, for each program described in subsection (b)(2) of that section (as so in effect on that day).”

Pub. L. 113–79, title I, § 1605(g), Feb. 7, 2014, 128 Stat. 708, provided that: “Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day before the date of the enactment of this Act [Feb. 7, 2014], shall apply with respect to the 2013 crop, fiscal, or program year, as appropriate, for each program described in paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as so in effect on that day).”

Pub. L. 110–234, title I, § 1604(b), May 22, 2008, 122 Stat. 1016, and Pub. L. 110–246, § 4(a), title I, § 1604(b), June 18, 2008, 122 Stat. 1664, 1744, provided that: “Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on September 30, 2007, shall apply with respect to the 2007 and 2008 crop, fiscal, or program year, as appropriate, for each program described in paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as amended by subsection (a)).”

[Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of this title.]