Average Adjusted Gross Income

Certification and Verification, 2019-2023

Farm Service Agency

Overview

The 2018 Farm Bill requires the implementation of an 

average adjusted gross income (AGI) limitation for 

payment eligibility for the 2019 through 2023 program 

years. The AGI limitation provision applies to most 

programs administered by the U.S. Department of 

Agriculture’s (USDA) Farm Service Agency (FSA) 

and Natural Resources Conservation Service (NRCS).

How It Works

All persons and legal entities requesting certain 

program payments, either directly or indirectly, are 

subject to the AGI limitation provision. If a person’s or 

legal entity’s AGI for the 3 taxable years preceding the 

most immediately preceding complete taxable year for 

which payments or benefits are requested exceeds the 

limitation, then the person or legal entity is ineligible 

for the applicable program payment or benefit. Further, 

program payments issued to an entity, general 

partnership or joint venture will be reduced by an 

amount commensurate with the direct and indirect 

interest of any member or interest holder who is 

ineligible because the member or interest holder’s AGI 

exceeds the applicable limitation.

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FACT SHEET

June 2019

Definitions

Adjusted Gross Income: For an individual is the 

Internal Revenue Service (IRS) reported adjusted gross 

income; or for a legal entity, a comparable measure as 

determined by the Commodity Credit Corporation 

(CCC).

Legal Entity: The term “legal entity” includes a 

corporation, joint stock company, association, limited 

partnership, charitable organization or similar entity, 

including any such entity or organization participating 

in the operation as a partner in a general partnership, a 

participant in a joint venture, a grantor in a revocable 

trust or a participant in a similar entity.

Base Period for Determining AGI

A 3-year AGI will be used to determine whether an 

individual or legal entity qualifies to receive program 

benefits subject to AGI rules. Base years for 

computing AGI are:

For Crop Year:

2019

2020

2021

2022

2023

AGI Base Years Are:

2015, 2016, 2017

2016, 2017, 2018

2017, 2018, 2019

2018, 2019, 2020

2019, 2020, 2021
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ADJUSTED GROSS INCOME - JUNE 2019

IF the AGI exceeds...

$900,000

(AGI, or comparable 

measure, of the person 

or legal entity over the

3 taxable years 

preceding the most 

immediately preceding 

complete taxable year 

for which payments or 

benefits are requested. 

Exclude any years for 

which the person or legal 

entity did not have 

taxable income.)

THEN the person or legal entity is 

ineligible for payments and benefits 

under the following programs...

Oct. 1, 2011, and subsequent years:

• Livestock Indemnity Program (LIP)

• Livestock Forage Disaster Program (LFP)

• Emergency Assistance for Livestock,

 Honeybees and, Fish Program (ELAP)

• Tree Assistance Program (TAP)

2014 and subsequent years:

• Noninsured Crop Disaster Assistance

 Program (NAP)

2014-2023:

• Price Loss Coverage (PLC)

• Agriculture Risk Coverage (ARC)

• Marketing Loan Gain (MLG)

• Loan Deficiency Payment (LDP)

• Agricultural Management Assistance

 (AMA)

2015 and subsequent years:

• Conservation Reserve Program (CRP)

• Environmental Quality Incentives

 Program (EQIP)

• Conservation Stewardship Program

 (CSP)

• Agricultural Conservation Easement

 Program (ACEP)

• Regional Conservation Partnership

 Program

• Conservation of Private Grazing Land

 Program

• Farmable Wetlands Program

• Grassroots Source Water Protection

 Program

• Voluntary Public Access and Habitat

 Incentive Program

2018 only:

Market Facilitation Program (MFP) 

Annual Certifications

Participants in programs subject to AGI rules must 

annually certify their eligibility to receive program 

benefits. The IRS requires written consent from the 

individual or legal entity to provide the USDA 

verification of the individual’s or legal entity’s 

certification of compliance with AGI limitation 

provisions. Such annual AGI certification and written 

consent are accomplished by completion of form 

CCC-941, Average Adjusted Gross Income (AGI) 

Certification and Consent to Disclosure of Tax 

Information.

Producers and their members and interest holders are 

encouraged to submit the completed CCC-941 before 

payments and benefits are requested under USDA 

programs that are subject to the AGI limitation. 

Producers can mail or return the completed CCC-941 

directly to the appropriate USDA service center. As 

required by law, producers must sign the CCC-941 to 

grant the IRS the authority to use tax information for 

the purpose of AGI compliance verification requested 

by USDA. Failure to provide the certification and 

consent will result in the determination of ineligibility 

and the required refund of applicable program 

payments received from FSA and NRCS. Form 

CCC-941 may be obtained from local FSA and NRCS 

offices or online at 

AGI Limitation

The $900,000 AGI limitation is as follows.

https://forms.sc.egov.usda.gov//efcommon/

eFileServices/eForms/CCC941.PDF.
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ADJUSTED GROSS INCOME - JUNE 2019

Tracking AGI Compliance through 

Legal Entity Ownership

Compliance with the AGI limitation is tracked through 

four levels of legal entity ownership. If individuals or 

legal entities within those four levels do not comply 

with AGI limitation provisions, payments to the 

participating legal entity will be reduced by an amount 

commensurate with the ineligible share.

If the participant is a general partnership or joint 

venture, AGI certifications are required from each:

• Member who is an individual or legal entity; and

• Embedded interest holder.

If the participant is a legal entity, AGI certifications are 

required from:

• The participating legal entity;

• Each interest holder who is an individual or legal

 entity; and

• Each embedded interest holder.

AGI Verification Process

USDA and IRS developed an electronic information 

exchange process strictly for the purpose of AGI 

certification verification. This process involves a series 

of IRS calculations of specific line items on IRS tax 

forms for the applicable 3-year period to arrive at the 

average amount. IRS then compares this value to the 

AGI limitation. USDA receives indicators when a 

program participant appears to meet or not meet the 

AGI requirement. USDA does not receive any actual 

tax data from IRS. Participants who USDA receives 

confirmation that the AGI limitation was not exceeded 

will remain eligible for program benefits and no 

further actions are necessary. For any participant who 

appears to exceed the AGI limitation, the participant’s 

AGI certification will be evaluated further by FSA 

state office personnel.

Step-by-Step Process

The following steps describe the AGI certification and 

verification processes:

• FSA and NRCS provide producers with an AGI

 certification and consent form (CCC-941) to

 complete. The CCC-941 includes the participant’s

 certification of AGI compliance for the appropriate

 year and authorizes the IRS to disclose to USDA

 tax-related information for the AGI compliance

 purposes for the indicated year only.

• Producers (and each of the producer’s members and

 interest holders) complete and return CCC-941 forms

 by mail or in person to the appropriate USDA service

 center (address printed in the upper right-hand

 corner, first page).

• FSA submits the completed CCC-941 forms to the

 IRS for processing.

• The IRS checks each participant’s (and each

 participant’s direct and indirect member or interest

 holder) AGI certification by performing

 computerized calculations that indicate whether or

 not the participant (or the participant’s direct and

 indirect member or interest holder) may exceed the

 AGI limitation.

• Persons and legal entities for whom IRS has

 indicated as meeting the AGI limitation will remain

 eligible for program benefits and no further actions

 are necessary for that person or legal entity for the

 year.

• Producers whose AGI appears to exceed the AGI

 limitation will be notified in writing of the results

 and provided an opportunity to make available

 within 30 days to the applicable FSA office:

 - A third-party verification from a certified public

 accountant or attorney of their AGI that

 demonstrates the limit has not been exceeded; or

 - Copies of the complete federal tax returns that

 were filed with the IRS for the applicable tax years

 under review.
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ADJUSTED GROSS INCOME - JUNE 2019

USDA is an equal opportunity provider, employer and lender.

• Producers determined not to be in compliance with

 AGI limitation will be offered appeal rights to either

 FSA or the National Appeals Division.

• Producers who fail to respond to written notices of

 AGI non-compliance or who are determined

 non-compliant will be notified of the requirement to

 refund the applicable program payments. Actions

 required by the Debt Collection Improvement Act

 will be followed by NRCS and FSA.

AGI Wavier

The 2018 Farm Bill provides that the $900,000 

limitation may be waived on a case-by-case basis for 

protection of environmentally sensitive land of special 

significance that would be protected because of the 

waiver. 

Applicability of the waiver is limited to conservation 

program payments or benefits under title II of the 

2018, 2008 or 2002 Agricultural Acts or title XII of the 

1985 Act. 

Additional information about requesting a waiver will 

be provided by FSA’s Conservation Division.

More information

For more information on FSA programs, eligibility and 

related information, visit fsa.usda.gov. 

Find your local USDA Service Center

To locate your local FSA office, visit 

farmers.gov/service-locator.