128 
general partnerships) that comprise the 
ownership of the joint venture or general 
partnership. 
‘‘(4) FOUR LEVELS OF ATTRIBUTION FOR EM-
BEDDED ENTITIES.— 
‘‘(A) IN
GENERAL.—Attribution of pay-
ments made to legal entities shall be traced 
through four levels of ownership in entities. 
‘‘(B) FIRST LEVEL.—Any payments made 
to a legal entity (a first-tier entity) that is 
owned in whole or in part by a person shall be 
attributed to the person in an amount that rep-
resents the direct ownership in the first-tier enti-
ty by the person. 
‘‘(C) SECOND LEVEL.—Any payments made 
to a first-tier entity that is owned in whole or 
in part by another legal entity (a second-tier en-
tity) shall be attributed to the second-tier entity 
in proportion to the second-tier entity’s owner-
ship in the first-tier entity. If the second-tier en-
tity is owned in whole or in part by a person, 
the amount of the payment made to the first-tier 
entity shall be attributed to the person in the 
amount that represents the indirect ownership in 
the first-tier entity by the person. 
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129 
‘‘(D) THIRD
AND
FOURTH
LEVELS.—The 
Secretary shall attribute payments at the third 
and fourth tiers of ownership in the same man-
ner as specified in subparagraph (C) unless the 
fourth-tier of ownership is that of a fourth-tier 
entity and not that of a person, in which case 
the Secretary shall reduce the amount of the pay-
ment to be made to the first-tier entity in the 
amount that represents the indirect ownership in 
the first-tier entity by the fourth-tier entity. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) MINOR CHILDREN.—Payments received by a 
child under the age of 18 shall be attributed to the 
child’s parents, except that the Secretary shall issue 
regulations which provide the conditions under which 
payments received by a child under the age of 18 will 
not be attributed to the child’s parents. 
‘‘(2) MARKETING
COOPERATIVES.—Subsections 
(b) and (c) shall not apply to a cooperative associa-
tion of producers with respect to commodities pro-
duced by its members which are marketed by such as-
sociation on behalf of its members but shall apply to 
such producers as persons. 
‘‘(3) TRUSTS AND ESTATES.— 
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130 
‘‘(A) IN GENERAL.—With respect to irrev-
ocable trusts and estates, the Secretary shall ad-
minister the provisions of this subtitle in such 
manner as the Secretary determines will ensure 
that fair and equitable treatment of the bene-
ficiaries of such trusts and estates. 
‘‘(B) IRREVOCABLE TRUST.—In order for a 
trust to be considered an irrevocable trust, the 
terms of the trust agreement must not allow for 
modification or termination of the trust by the 
grantor, allow for the grantor to have any future, 
contingent, or remainder interest in the corpus 
of the trust, or provide for the transfer of the cor-
pus of the trust to the remainder beneficiary in 
less than 20 years from the date the trust is es-
tablished except in cases where the transfer is 
contingent on the remainder beneficiary achiev-
ing at least the age of majority or is contingent 
on the death of the grantor or income bene-
ficiary. 
‘‘(C) REVOCABLE TRUST.—A revocable trust 
shall be considered to be the same person as the 
grantor of the trust. 
‘‘(4) CASH RENT TENANTS.— 
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131 
‘‘(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 is eligible to 
receive a payment described in subsection (b) 
only if the tenant makes a significant contribu-
tion of equipment used in the farming operation. 
‘‘(5) FEDERAL AGENCIES.— 
‘‘(A) IN GENERAL.—Federal agencies shall 
not be eligible to receive any payment described 
in subsection (b) or (c). 
‘‘(B) RENTS LAND.—A person or legal enti-
ty that rents land owned by a Federal agency 
may receive such payments. 
‘‘(6) STATE AND LOCAL GOVERNMENTS.— 
‘‘(A) GOVERNMENTS INELIGIBLE.— 
‘‘(i) IN GENERAL.—Except as provided 
in subparagraphs (B) and (C), State and 
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132 
local governments and political subdivisions 
and agencies of such governments, shall not 
be eligible to receive payments described in 
subsections (b) and (c). 
‘‘(ii) TENANTS.—A person or legal en-
tity that rents land owned by a State or 
local government or a political subdivision 
or agency of such government, may receive 
payments described in subsections (b) and 
(c) if they otherwise meet all applicable cri-
teria. 
‘‘(B) EXCEPTION.— 
‘‘(i) IN GENERAL.—Within the limita-
tion described in clause (ii), a State and the 
political subdivisions and agencies of such 
governments, may receive payments de-
scribed in subsections (b) and (c), if the 
State or a political subdivision or agency of 
such government— 
‘‘(I) is the producer of all crops 
produced on a farm; and 
‘‘(II) the proceeds from the crop 
production are used to maintain a 
public school. 
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133 
‘‘(ii) LIMITATION.—For each State, the 
total amount of payments described in sub-
sections (b) and (c) that are received collec-
tively by the State and all political subdivi-
sions or agencies of such governments shall 
not exceed the amounts that one legal entity 
may receive in one year as specified in sub-
sections (b) and (c). 
‘‘(C) SHARE LEASES.—A State and the po-
litical subdivisions and agencies of such govern-
ments may, without regard to the provisions of 
subparagraph (B), receive payments described in 
subsections (b) and (c) if— 
‘‘(i) the payments are received with re-
spect to land that is share leased to a pri-
vate party; 
‘‘(ii) the lease was in effect on the date 
of enactment of the Farm, Nutrition, and 
Bioenergy Act of 2007; and 
‘‘(iii) the land is used to maintain a 
public school. 
‘‘(7) CHANGES IN FARMING OPERATIONS.—In the 
administration of this subtitle, the Secretary may not 
approve any change in a farming operation that oth-
erwise will increase the number of persons to which 
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