RFA Ethanol Podcast

USDA Extends Deadline for Recording Farm Structure

Kelly Marshall

USDAAgriculture Secretary Tom Vilsack says the USDA will be offering a one-time, 30-day extension on the June 1 deadline for recording farm organization structures related to Actively Engaged in Farming determinations.  Operations now have until July 1 to finalize changes or complete their restructuring.  This comes as a response to farmers and ranchers who needed more time to provide information compliant with the new rules.

“Most farming and ranching organizations have been able to comply with the actively engaged rule,” said Vilsack. “This one-time extension should give producers who may still need to update their farm structure information the additional time to do so.”

The 2014 Farm Bill provided the Secretary with the direction and authority to amend the Actively Engaged in Farming rules related to management. The final rule established limits on the number of individuals who can qualify as actively engaged using only management. Only one payment limit for management is allowed under the rule, with the ability to request up to two additional qualifying managers operations for large and complex operations.

The rule does not apply to farming operations comprised entirely of family members. The rule also does not change the existing regulations related to contributions of land, capital, equipment or labor, or the existing regulations related to landowners with a risk in the crop or to spouses. The payment limit associated with Farm Service Agency farm payments is generally limited annually to $125,000 per individual or entity.

Producers who planted fall crops have until the 2017 crop year to comply with the new rules.

USDA