†
204
HR 2419 EAS
‘‘(4) CASH RENT TENANTS.—
‘‘(A) DEFINITION.—In this paragraph, the
term ‘cash rent tenant’ means a person or legal
entity that rents land—
‘‘(i) for cash; or
‘‘(ii) for a crop share guaranteed as to
the amount of the commodity to be paid in
rent.
‘‘(B) RESTRICTION.—A cash rent tenant
who makes a significant contribution of active
personal management, but not of personal labor,
with respect to a farming operation shall be eli-
gible to receive a payment described in sub-
section (b) or (c) only if the tenant makes a sig-
nificant contribution of equipment to the farm-
ing operation.
‘‘(5) FEDERAL AGENCIES.—
‘‘(A) IN GENERAL.—A Federal agency shall
not be eligible to receive any payment described
in subsection (b) or (c).
‘‘(B) LAND
RENTAL.—A lessee of land
owned by a Federal agency may receive a pay-
ment described in subsection (b) or (c) if the les-
see otherwise meets all applicable criteria.
‘‘(6) STATE AND LOCAL GOVERNMENTS.—
†
205
HR 2419 EAS
‘‘(A) IN GENERAL.—Except as provided in
subsection (g), a State or local government, or
political subdivision or agency of the govern-
ment, shall not be eligible to receive a payment
described in subsection (b) or (c).
‘‘(B) TENANTS.—A lessee of land owned by
a State or local government, or political subdivi-
sion or agency of the government, may receive
payments described in subsections (b) and (c) if
the lessee otherwise meet all applicable criteria.
‘‘(7) CHANGES IN FARMING OPERATIONS.—
‘‘(A) IN GENERAL.—In the administration
of this section through section 1001F, the Sec-
retary may not approve any change in a farm-
ing operation that otherwise will increase the
number of persons to which the limitations
under this section are applied unless the Sec-
retary determines that the change is bona fide
and substantive.
‘‘(B) FAMILY MEMBERS.—The addition of a
family member to a farming operation under the
criteria set out in section 1001A shall be consid-
ered a bona fide and substantive change in the
farming operation.
‘‘(8) DEATH OF OWNER.—
†
206
HR 2419 EAS
‘‘(A) IN GENERAL.—If any ownership inter-
est in land or a commodity is transferred as the
result of the death of a program participant, the
new owner of the land or commodity may, if the
person is otherwise eligible to participate in the
applicable program, succeed to the contract of the
prior owner and receive payments subject to this
section without regard to the amount of pay-
ments received by the new owner.
‘‘(B) LIMITATIONS ON PRIOR OWNER.—Pay-
ments made under this paragraph shall not ex-
ceed the amount to which the previous owner was
entitled to receive under the terms of the contract
at the time of the death of the prior owner.’’.
(c) REPEAL OF 3-ENTITY RULE.—Section 1001A of the
Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—
(1) in the section heading, by striking ‘‘PRE-
VENTION OF CREATION OF ENTITIES TO QUAL-
IFY AS SEPARATE PERSONS’’ and inserting ‘‘NO-
TIFICATION OF INTERESTS’’; and
(2) by striking subsection (a) and inserting the
following:
‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate ad-
ministration of section 1001 and this section, each person
or legal entity receiving payments described in subsections
†
207
HR 2419 EAS
(b) and (c) of section 1001 as a separate person or legal
entity shall separately provide to the Secretary, at such
times and in such manner as prescribed by the Secretary—
‘‘(1) the name and social security number of
each individual, or the name and taxpayer identifica-
tion number of each legal entity, that holds or ac-
quires an ownership interest in the separate person or
legal entity; and
‘‘(2) the name and taxpayer identification num-
ber of each legal entity in which the person or legal
entity holds an ownership interest.’’.
(d) AMENDMENT FOR CONSISTENCY.—Section 1001A
of the Food Security Act of 1985 (7 U.S.C. 1308–1) is
amended by striking subsection (b) and inserting the fol-
lowing:
‘‘(b) ACTIVELY ENGAGED.—
‘‘(1) IN GENERAL.—To be eligible to receive a
payment described in subsection (b) or (c) of section
1001, a person or legal entity shall be actively en-
gaged in farming with respect to a farming operation
as provided in this subsection or subsection (c).
‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as
provided in subsections (c) and (d)—
‘‘(A) a person (including a person partici-
pating in a farming operation as a partner in
†
208
HR 2419 EAS
a general partnership, a participant in a joint
venture, a grantor of a revocable trust, or a par-
ticipant in a similar entity, as determined by
the Secretary) shall be considered to be actively
engaged in farming with respect to a farming
operation if—
‘‘(i) the person makes a significant
contribution (based on the total value of the
farming operation) to the farming oper-
ation of—
‘‘(I) capital, equipment, or land;
and
‘‘(II) personal labor or active per-
sonal management;
‘‘(ii) the person’s share of the profits or
losses from the farming operation is com-
mensurate with the contributions of the per-
son to the farming operation; and
‘‘(iii) the contributions of the person
are at risk;
‘‘(B) a legal entity that is a corporation,
joint stock company, association, limited part-
nership, charitable organization, or other similar
entity determined by the Secretary (including
any such legal entity participating in the farm-