Payment limitation

The maximum annual amount of commodity program benefits a person can receive by law. The total amount of payments must be attributed (linked) to a person, by taking into account direct and indirect ownership interests of the person in a legal entity, such as limited partnerships, corporations, associations, trusts, and estates, that are actively engaged in farming. Payment limits are set at $40,000 per person per crop year for direct payments and $65,000 for counter-cyclical payments. The 2008 Farm Act eliminated payment limits for marketing loan benefits. For producers who elect the Average Crop Revenue Election (ACRE) program, the limit on direct payments is reduced by 20 percent. The limit on ACRE payments is $65,000 plus the 20 percent reduction in direct payments. The 2008 Farm Bill established separate limits on the farm and nonfarm components of adjusted gross income based on the type of payment. These new limits include two applicable to nonfarm income and one applicable to farm income.

Authorization Path: 1.1.1.1.55.0