By Scout Nelson
The Farm Service Agency (FSA) has introduced important updates that affect producers participating in conservation and disaster assistance programs. These changes are part of the Working Families Tax Cuts Act and aim to better reflect modern agricultural practices.
Under the new policy, producers may be exempt from the $900,000 adjusted gross income (AGI) limit if they meet certain conditions. Starting from the 2026 program year, producers who earn at least 75 percent of their AGI from farming, ranching, or silviculture will not be restricted by this cap when applying for conservation and disaster programs.
The updated definition of farming income now includes a wider range of activities. These include agritourism, direct-to-consumer sales, and certain equipment-related business activities. This change ensures that diversified agricultural producers are treated fairly and are not penalized for expanding their operations.
To qualify for the exemption, producers must complete and submit a CCC-943 form. This form must be verified by a certified public accountant, tax attorney, or an authorized enrollment agent. This step ensures accurate reporting and compliance with the new rules.
The policy also makes it easier for certain business entities. Pass-through entities, such as limited liability companies (LLCs) and S-Corporations, are not required to certify AGI compliance at the entity level. This simplifies the process for many agricultural businesses operating under these structures.
These updates reflect the growing complexity of agriculture today. Many producers now rely on multiple income sources connected to farming. By recognizing these activities, the FSA aims to provide better support and encourage sustainable agricultural practices.
Producers interested in learning more about these changes or applying for the exemption are advised to contact their local FSA office. This new policy is expected to improve access to important programs and strengthen financial support for agricultural communities.
Photo Credit: usda-farm-service-agency
Categories: Kansas, Business, General, Government & Policy