United States Department of Agriculture
Natural Resources Conservation Service
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Wyoming Help Sheet -- 2008 Farm Bill

Do I qualify as a Socially Disadvantaged, Beginning, or Limited Resource Farmer/Rancher?

Socially Disadvantaged Farmer or Rancher1:

A socially disadvantaged group is a group whose members have been subject to racial or ethnic prejudice because of their identity as members of a group, without regard to their individual qualities.  These groups consist of:

  • American Indians or Alaskan Natives
  • Asians
  • Blacks or African Americans
  • Native Hawaiians or other Pacific Islanders
  • Hispanics

Note:  Gender alone is not a covered group for the purposes of NRCS conservation programs.

1 A socially disadvantaged applicant is an individual or entity who is a member of a socially disadvantaged group.  For an entity, at least 50 percent ownership in the farm business must be held by socially disadvantaged individuals.  One member of an eligible entity may certify for all members rather than have each member self-certify.

Beginning Farmer or Rancher:

a. Has not operated a farm or ranch, or who has operated a farm or ranch for not more than 10 consecutive years.  This requirement applies to all members of an entity,
and
b. Will materially and substantially participate in the operation of the farm or ranch.

1. In the case of a contract with an individual, individually or with the immediate family, material and substantial participation requires that the individual provide substantial day-to-day labor and management of the farm or ranch, consistent with the practices in the county or State where the farm is located.

2. In the case of a contract made with an entity, all members must materially and substantially participate in the operation of the farm or ranch.  Material and substantial participation requires that the members provide some amount of the management, or labor and management necessary for day-to-day activities, such that if the members did not provide these inputs, operation of the farm or ranch would be seriously impaired.

Limited Resource Farmer or Rancher2:

a. A person with direct or indirect gross farm sales not more than $155,200 in each of the previous two years,
and
b. Has a total household income at or below the national poverty level for a family of four, or less than 50 percent of county median household income (to be determined annually using Commerce Department Data), in each of the previous two years.

2 An entity or joint operation can be a Limited Resource Producer if all members individually qualify as a Limited Resource Producer.

Reference web sites:
    http://www.lrftool.sc.egov.usda.gov/
    http://www.nrcs.usda.gov/programs/SLB_Farmer/

Notation: All applicants that certify eligibility as a Socially Disadvantaged, Beginning, or Limited Resource Farmer or Rancher will provide all records necessary to justify their claim as requested by a CCC representative.  It is the responsibility of the applicant to provide accurate data.  False certifications are subject to criminal and civil fraud statutes.

How will this self certification be checked?

For the purposes of verification, NRCS State Office shall randomly select five (5) percent of all participants each year who have certified as being a Beginning or Limited Resource Farmer/Rancher.

Limited Resource Farmer or Rancher:
Certification to be Verified Requirement
Gross Farm Sales Determination Gross Farm Sales is defined as Gross Income entered on IRS Form 1040, Schedule F, in the Farm Income Section.  In each of the last two years, determine if the participant’s direct or indirect Gross Farm Sales were less than or equal to $155,200 per year.
Total Household Income Determination Total Household Income is defined as Adjusted Gross Income (AGI) for all members in the household and is entered on IRS Form 1040, AGI Section.  In each of the last two years, determine if the AGI is less than the “County/Area Value.”  The County/Area Value is calculated as the higher of the National Poverty level or 50 percent of the County Median Household Income.  County/Area Median Household Income value is taken from the county in which the participant resides.  This value can be determined by referring to the self-determination tool on the NRCS website at:
Limited Resources Self-Determination Tool
Exceptions: A letter from a certified public accountant or attorney certifying the participant meets the eligibility requirements may be used in lieu of IRS Form 1040.
Beginning Farmer or Rancher:
Certification to be Verified Requirement
Farm Profit or Loss If the participant can provide one IRS Form 1040 from the last ten years that shows the participant did not file an IRS Form 1040, Schedule F, the participant is eligible as a beginning farmer or rancher.
Exceptions: A letter from a certified public accountant or attorney certifying the participant meets the eligibility requirements may be used in lieu of IRS Form 1040.

What are the results if I am not able to provide this verification?

Failure to provide the necessary information to verify eligibility will result in ineligibility for participation in EQIP as a Beginning or Limited Resource Producer. If the information provided fails to support eligibility, the Designated Conservationist will notify the State Conservationist who will take appropriate action.

The Designated Conservationist, with concurrence from the State Conservationist, may terminate any and all approved contracts with a participant who has been found to falsely certify Limited Resource Producer/Rancher or Beginning Farmer or Rancher status

July 14, 2009

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Last Modified: 07/17/2009