As previously reported in Cotton's Week (10/29/11), the FY12 agriculture appropriations bill recently signed into law includes a provision requiring USDA to implement an additional adjusted gross income (AGI) test to determine eligibility for '12 direct payments.
USDA has issued a Notice, which provides FSA offices with instructions to implement the new test. In addition to the $500,000 three-year average non-farm AGI and the $750,000 three-year average farm AGI, a $1 million three-year average AGI test will be applied to all persons and legal entities that request '12 direct payments. The $1 million three-year average non-farm AGI limitation remains effective for conservation program participants.
The recently released one-page Form CCC-931, which provided for the certification of average AGI compliance and consent to the disclosure of tax information, has been revised to include the additional $1 million three-year average AGI limitation. The effective date of the revised CCC-931 is Dec. 7, '11.
If a program participant previously has submitted an earlier version of Form CCC-931 for the '12 program year, they may be required to complete the revised CCC-931, which includes the new additional $1 million average AGI limitation for '12 AGI compliance and verification purposes.