Page:United States Statutes at Large Volume 101 Part 2.djvu/808

 101 STAT. 1330-14

PUBLIC LAW 100-203—DEC. 22, 1987 themselves their interests in the designated entity or entities.".

SEC. 1302. PAYMENTS LIMITED TO ACTIVE FARMERS.

Effective beginning with the 1989 crops, section 1001A of the Food Security Act of 1985, as added by section 1301, is amended by adding at the end the following: "0)) PAYMENTS LIMITED TO ACTIVE FARMERS.—

"(1) IN GENERAL.—To be separately eligible for farm program payments (as described in paragraphs (1) and (2) of section 1001 as being subject to limitation) under the Agricultural Act of 1949 with respect to a particular farming operation (whether in the person's own right or as a partn3r in a general partnership, a grantor of a revocable trust, a participant in a joint venture, or a participant in a similar entity (as determined by the Secretary) that is the producer of the crops involved), a person must be an individual or entity described in section 1001(5)(B)(i) and actively engaged in farming with respect to such operation, as provided under paragraphs (2), (3), and (4). (2) GENERAL CLASSES ACTIVELY ENGAGED IN FARMING.^—For

the purposes of paragraph (1), except as otherwise provided in paragraph (3): "(A) INDIVIDUALS.—An individual shall be considered to be actively engaged in farming with respect to a farm operation if— "(i) the individual makes a significant contribution (based on the total value of the farming operation) of^ "(I) capital, equipment, or land; and "(II) personal labor or active personal management; to the farming operation; and "(ii) the individual's share of the profits or losses from the farming operation is commensurate with the individual's contributions to the operation; and "(iii) the individual's contributions are at risk. "(B) CORPORATIONS OR OTHER ENTITIES.—A corporation or other entity described in section 1001(5)(B)(i)(II) shall be considered as actively engaged in farming with respect to a farming operation if— (i) the 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 paragraph (A), as applied to the entity, are met by the entity. "(C) ENTITIES MAKING SIGNIFICANT CONTRIBUTIONS.—If a

general partnership, joint venture, or 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 paragraph (A), as applied to the entity, are met by the entity, the partners ' Copy read "CLASSES ACTIVELY ENGAGED IN FARMING".

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