US Code

Public Law 119-73 (01/23/2026)

7 U.S.C. § 1308–1

Notification of interests; payments limited to active farmers

(a)

Notification of interests

section 1308 of this titlesection 1308 of this titleTo facilitate administration of and this section, each person or legal entity receiving payments described in subsections (b) and (c) of 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

section 1308 of this titleTo be eligible to receive a payment described in subsection (b) or (c) of , 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.

Pub. L. 99–198, title X, § 1001APub. L. 100–203, title I101 Stat. 1330–12Pub. L. 101–624, title XI, § 1111(d)104 Stat. 3498Pub. L. 102–237, title I, § 118(c)105 Stat. 1841Pub. L. 104–127, title I, § 115(c)(1)110 Stat. 903Pub. L. 107–171, title I, § 1603(c)(1)116 Stat. 215Pub. L. 110–234, title I, § 1603(c)122 Stat. 1007Pub. L. 110–246, § 4(a)122 Stat. 1664Pub. L. 119–21, title I, § 10306(c)139 Stat. 91(, as added and amended , §§ 1301(a)(3), 1302, , , 1330–14; , (f), , , 3499; , , ; , , ; , , ; , (d), , , 1008; , title I, § 1603(c), (d), , , 1735, 1736; , , .)

Editorial Notes

Codification

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 The amendments by were repealed by .

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

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

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

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

Pub. L. 110–246, § 1603(c)(2)section 1308 of this titleSubsec. (a). , 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 .

Pub. L. 110–246, § 1603(d)section 1308(e)(2)(A) of this titleSubsecs. (b) to (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 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.

Pub. L. 107–171, § 1603(c)(1)section 1308(e)(2)(A) of this titlesection 1308(5)(B)(i) of this titlesection 1308(e)(2)(A)(ii) of this titlesection 1308(5)(B)(i)(II) of this title2002—Subsec. (a)(1). , substituted “” for “” and “” for “”.

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

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

Pub. L. 104–127, § 115(c)(1)(A)7 U.S.C. 14211996—Subsec. (a)(1). , struck out “under the Agricultural Act of 1949 ( et seq.)” before “may not also hold”.

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

Pub. L. 102–2371991—Subsec. (a)(2). struck out “0 to” after “less than”.

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

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

Pub. L. 100–203, § 13021987—Subsec. (b). , added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

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

Effective Date of 1990 Amendment

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

Effective Date of 1987 Amendment

Pub. L. 100–203, title I, § 1302101 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)101 Stat. 1330–12, , , provided that this section is effective beginning with the 1989 crops.

Transition Provisions

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

Rulemaking Related to Significant Contribution for Active Personal Management

Pub. L. 113–79, title I, § 1604128 Stat. 706

“(a)

Regulations Required .—

Within 180 days after the date of the enactment of this Act [], the Secretary shall promulgate, with an opportunity for notice and comment, regulations—
“(1)
7 U.S.C. 1308–1 to define the term ‘significant contribution of active personal management’ for purposes of section 1001A of the Food Security Act of 1985 (); and
“(2)
7 U.S.C. 1308–1 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 () by an individual or entity.
“(b)

Considerations .—

In promulgating the regulations required under subsection (a), the Secretary shall consider—
“(1)
the size, nature, and management requirements of each type of farming operation;
“(2)
the changing nature of active personal management due to advancements of farming operations; and
“(3)
the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation.
“(c)

Family Farms .—

7 U.S.C. 1308(a)(2)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 ()).
“(d)

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.
“(e)

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.
“(f)

Relation to Other Requirements .—

7 U.S.C. 1308–1Nothing 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 ().
“(g)

Effective Date .—

The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 2015 crop year.”
, , , provided that: