Tightening the Rules for Farm and Ranch Entities with Non-Family Members
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The Agricultural Act of 20141 directed the United States Department of Agriculture to define the term “significant contribution of active personal management” for purposes of the Food Security Act of 19852 and “. . . to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when a significant contribution of active personal management is the basis used to meet the requirement of being actively engaged in farming under section 1001A of the Food Security Act of 1985.”3 The Secretary of Agriculture was under orders not to “. . . apply the regulations . . .to individuals or entities comprised solely of family members” and to apply the requirements of any resulting regulation “. . . beginning with the 2015 crop year.”4 The proposed regulations were published in the Federal Register5 on March 26, 2015.