Adjusted Gross Income (AGI) Verification Process
The 2014 Farm Bill provides that individuals and legal entities with average adjusted gross income (AGI) in excess of a specified average AGI limitation are ineligible for payments subject to that limitation.
Q: In the new farm bill, what is the AGI limitation requirement?
A: The Adjusted Gross Income (AGI) limitation is $900,000 for both conservation and commodity program payments and benefits. This is a single, total limit, and not subject to the previous flexibility in cases where two thirds of the income was from farm income.
Q: Is there still a provision to waive the AGI requirement for protection of environmentally sensitive land of special significance?
A: The authority to waive the AGI limitation for projects of special environmental significance was removed in this farm bill, but NRCS is authorized to waive the AGI requirement for RCPP contracts that would further the purposes of the project.
Q: How will the AGI requirement apply for FY14 applications?
A: AGI requirements do not commence until FY 2015 for most of NRCS conservation programs, with the exception of AMA. AGI requirements are effective upon enactment for AMA.
Q: How will the new AGI requirement affect my existing contracts?
A: The new limitation has no impact on existing contracts.