Sponsors (2)
The bill helps farmers—including diversified and agritourism operations—keep eligibility for certain farm payments by counting agriculture-derived income, but it raises federal costs and risks discretionary, inconsistent, and more complex eligibility rules.
Farmers and agricultural businesses that derive at least 75% of their adjusted gross income from farming or related activities can remain eligible for certain farm program payments despite income-based payment limits.
Small and diversified farms (including those doing agritourism or direct-to-consumer sales) can count those activities as qualifying agricultural income so they can access program benefits.
Program administrators (and applicants) gain clearer guidance because the Secretary of Agriculture is authorized to determine which activities are 'agriculture-related,' reducing some ambiguity in eligibility decisions.
Taxpayers may face higher federal costs because higher-income individuals who derive most income from agriculture could bypass income-based payment limits and continue receiving payments.
Farmers, applicants, and administrators could face inconsistency and disputes because the Secretary's broad discretion to define 'agriculture-related' activities may be applied unevenly.
Farmers and stakeholders may encounter added complexity because the exception is narrowly limited to programs under subtitle E of the 2014 Farm Act and section 196 of the FAIR Act, leaving other programs' rules unchanged.
Based on analysis of 2 sections of legislative text.
Adds an exception to federal agriculture payment limits so that people or legal entities whose average adjusted gross income (AGI) is at least 75% from farming, ranching, or silviculture are not subject to the usual income-based payment cap for certain disaster and farm program payments. The change expressly counts agritourism, direct-to-consumer sales, and sale of owned farm equipment as agriculture-related income, with final determinations made by the Secretary of Agriculture. The exception applies only to specific program payments authorized in existing farm law.
Introduced March 12, 2025 by Alejandro Padilla · Last progress March 12, 2025