Source: https://www.law.cornell.edu/uscode/text/7/1308
Timestamp: 2019-04-24 02:14:53+00:00

Document:
The term “covered commodity” has the meaning given that term in section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011).
The term “family member” means a person to whom a member in the farming operation is related as lineal ancestor, lineal descendant, sibling, first cousin, niece, nephew, spouse, or otherwise by marriage.
The term “person” means a natural person, and does not include a legal entity.
The term “Secretary” means the Secretary of Agriculture.
The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017) (other than for peanuts) may not exceed $125,000.
The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017) for peanuts may not exceed $125,000.
Nothing in this section authorizes any limitation on any benefit associated with the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014 [7 U.S.C. 9031 et seq.] or title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.].
In implementing subsections (b) and (c) and a program described in paragraphs (1)(C) and (2)(B) of section 1308–3a(b)  of this title, the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to a person by taking into account the direct and indirect ownership interests of the person in a legal entity that is eligible to receive the payments.
Each payment made directly to a person shall be combined with the pro rata interest of the person in payments received by a legal entity in which the person has a direct or indirect ownership interest unless the payments of the legal entity have been reduced by the pro rata share of the person.
Each payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity unless the payment to the legal entity has been reduced by the pro rata share of the person.
Except as provided in clause (ii), payments made to a legal entity shall not exceed the amounts specified in subsections (b) and (c).
Payments made to a joint venture or a general partnership shall not exceed, for each payment specified in subsections (b) and (c), the amount determined by multiplying the maximum payment amount specified in subsections (b) and (c) by the number of persons and legal entities (other than joint ventures and general partnerships) that comprise the ownership of the joint venture or general partnership.
Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity by any person or legal entity that has otherwise exceeded the applicable maximum payment limitation.
Attribution of payments made to legal entities shall be traced through 4 levels of ownership in legal entities.
Any payments made to a legal entity (a first-tier legal entity) that is owned in whole or in part by a person shall be attributed to the person in an amount that represents the direct ownership in the first-tier legal entity by the person.
Any payments made to a first-tier legal entity that is owned (in whole or in part) by another legal entity (a second-tier legal entity) shall be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity in the first-tier legal entity.
If the second-tier legal entity is owned (in whole or in part) by a person, the amount of the payment made to the first-tier legal entity shall be attributed to the person in the amount that represents the indirect ownership in the first-tier legal entity by the person.
Except as provided in clause (ii), the Secretary shall attribute payments at the third and fourth tiers of ownership in the same manner as specified in subparagraph (C).
If the fourth-tier of ownership is that of a fourth-tier legal entity and not that of a person, the Secretary shall reduce the amount of the payment to be made to the first-tier legal entity in the amount that represents the indirect ownership in the first-tier legal entity by the fourth-tier legal entity.
Except as provided in subparagraph (B), payments received by a child under the age of 18 shall be attributed to the parents of the child.
The Secretary shall issue regulations specifying the conditions under which payments received by a child under the age of 18 will not be attributed to the parents of the child.
Subsections (b) and (c) shall not apply to a cooperative association of producers with respect to commodities produced by the members of the association that are marketed by the association on behalf of the members of the association but shall apply to the producers as persons.
With respect to irrevocable trusts and estates, the Secretary shall administer this section through section 1308–5 of this title in such manner as the Secretary determines will ensure the fair and equitable treatment of the beneficiaries of the trusts and estates.
except as provided in clause (ii), provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years beginning on the date the trust is established.
contingent on the death of the grantor or income beneficiary.
For the purposes of this section through section 1308–5 of this title, a revocable trust shall be considered to be the same person as the grantor of the trust.
for a crop share guaranteed as to the amount of the commodity to be paid in rent.
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 eligible to receive a payment described in subsection (b) or (c) only if the tenant makes a significant contribution of equipment to the farming operation.
Notwithstanding subsection (d), a Federal agency shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.], or title XII of this Act [16 U.S.C. 3801 et seq.].
A lessee of land owned by a Federal agency may receive a payment described in subsection (b), (c), or (d) if the lessee otherwise meets all applicable criteria.
Notwithstanding subsection (d), except as provided in subsection (g), a State or local government, or political subdivision or agency of the government, shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.], or title XII of this Act [16 U.S.C. 3801 et seq.].
A lessee of land owned by a State or local government, or political subdivision or agency of the government, may receive payments described in subsections (b), (c), and (d) if the lessee otherwise meets all applicable criteria.
In the administration of this section through section 1308–5 of this title, the Secretary may not approve any change in a farming operation that otherwise will increase the number of persons to which the limitations under this section are applied unless the Secretary determines that the change is bona fide and substantive.
The addition of a family member to a farming operation under the criteria set out in section 1308–1 of this title shall be considered a bona fide and substantive change in the farming operation.
If any ownership interest 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 payments received by the new owner.
Payments made under this paragraph shall not exceed 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.
The Secretary shall apply any order described in section 1614(d)(1) of the Agricultural Act of 2014 (7 U.S.C. 9097(d)(1)) to payments under sections 1116 and 1117 of that Act (7 U.S.C. 9016, 9017) prior to applying payment limitations under this section.
Notwithstanding subsection (f)(6)(A), a State or local government, or political subdivision or agency of the government, shall be eligible, subject to the limitation in paragraph (2), to receive a payment described in subsection (b) or (c) for land owned by the State or local government, or political subdivision or agency of the government, that is used to maintain a public school.
For each State, the total amount of payments described in subsections (b) and (c) that are received collectively by the State and local government and all political subdivisions or agencies of those governments shall not exceed $500,000.
The limitation in subparagraph (A) shall not apply to States with a population of less than 1,500,000.
Regulations of the Secretary shall establish time limits for the various steps involved with notice, hearing, decision, and the appeals procedure in order to ensure expeditious handling and settlement of payment limitation disputes. Notwithstanding any other provision of law, actions taken by an individual or other entity in good faith on action or advice of an authorized representative of the Secretary may be accepted as meeting the requirement under this section or section 1308–1 of this title, to the extent the Secretary deems it desirable in order to provide fair and equitable treatment.
The Agricultural Act of 2014, referred to in subsecs. (d) and (f)(5)(A), (6)(A), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. Subtitle B of title I of the Act is classified generally to subchapter II (§ 9031 et seq.) of chapter 115 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables.
Pars. (1) and (2) of section 1308–3a(b) of this title, referred to in subsec. (e)(1), were repealed, and new pars. (1) and (2) were enacted, by Pub. L. 113–79, title I, § 1605(a)(2), Feb. 7, 2014, 128 Stat. 707.
The Food, Conservation, and Energy Act of 2008, referred to in subsec. (f)(5)(A), (6)(A), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8701 of this title and Tables.
Title XII of this Act, referred to in subsec. (f)(5)(A), (6)(A), means title XII of the Food Security Act of 1985, Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1504, which is classified principally to chapter 58 (§ 3801 et seq.) of Title 16, Conservation.
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
A prior section 1308, Pub. L. 97–98, title XI, § 1101, Dec. 22, 1981, 95 Stat. 1263; Pub. L. 98–88, § 6, Aug. 26, 1983, 97 Stat. 499, related to programs for 1982 through 1985 crops.
Another prior section 1308, Pub. L. 95–113, title I, § 101, Sept. 29, 1977, 91 Stat. 917; Pub. L. 96–213, § 5, Mar. 18, 1980, 94 Stat. 120, related to programs for 1978 through 1981 crops.
2018—Subsec. (a)(1). Pub. L. 115–334, § 1703(a)(1)(A), substituted “section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011)” for “section 1001 of the Food, Conservation, and Energy Act of 2008”.
Subsec. (a)(2). Pub. L. 115–334, § 1703(a)(1)(B), inserted “first cousin, niece, nephew,” after “sibling,”.
Subsecs. (b), (c). Pub. L. 115–334, § 1703(a)(2), substituted “sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017)” for “sections 1116 and 1117 and as marketing loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014”.
Subsec. (f)(9). Pub. L. 115–334, § 1703(a)(3), added par. (9).
2014—Subsecs. (b), (c). Pub. L. 113–79, § 1603(a), added subsecs. (b) and (c) and struck out former subsecs. (b) and (c). Prior to amendment, subsec. (b) related to limitations on direct payments, counter-cyclical payments, and ACRE payments for covered commodities other than peanuts, and subsec. (c) related to limitations on direct payments, counter-cyclical payments, and ACRE payments for peanuts.
Subsec. (d). Pub. L. 113–79, § 1605(f), inserted before period at end “or title I of the Agricultural Act of 2014”.
Pub. L. 113–79, § 1603(b)(1), substituted “the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014” for “the marketing assistance loan program or the loan deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008”.
Subsec. (f)(5)(A). Pub. L. 113–79, § 1603(b)(2)(A), substituted “, title I of the Agricultural Act of 2014, or title XII” for “or title XII”.
Subsec. (f)(6)(A). Pub. L. 113–79, § 1603(b)(2)(B), substituted “, title I of the Agricultural Act of 2014, or title XII” for “or title XII”.
2008—Subsec. (a). Pub. L. 110–246, § 1603(b)(1)(A), inserted “through section 1308–5 of this title” after “this section” in introductory provisions.
Subsec. (a)(1). Pub. L. 110–246, § 1603(a), substituted “Food, Conservation, and Energy Act of 2008” for “Farm Security and Rural Investment Act of 2002”.
Subsec. (a)(3) to (5). Pub. L. 110–246, § 1603(b)(1)(B), (C), added pars. (3) and (4) and redesignated former par. (3) as (5).
Subsecs. (b) to (d). Pub. L. 110–246, § 1603(b)(2), added subsecs. (b) to (d) and struck out former subsecs. (b) to (d) which related to limitation on direct payments, limitation on counter-cyclical payments, and limitation on marketing loan gains and loan deficiency payments, respectively.
Subsecs. (e) to (h). Pub. L. 110–246, § 1603(b)(3), added subsecs. (e) to (g), redesignated former subsec. (g) as (h), and struck out former subsecs. (e) and (f) which related to issuance of regulations defining “person” and prescribing rules determined necessary to assure a fair and reasonable application of section limitation, and inapplicability to public schools of provisions limiting payments to any person.
2002—Pub. L. 107–171, § 1603(a), substituted section catchline for former section catchline.
Subsec. (a) to (d). Pub. L. 107–171, § 1603(a), added subsecs. (a) to (d) and struck out former pars. (1) to (4) which related to limitation on payments under production flexibility contracts, limitation on marketing loan gains and loan deficiency payments, description of payments subject to limitation, and definitions, respectively.
Subsec. (f). Pub. L. 107–171, § 1603(b)(2), redesignated par. (6) as subsec. (f) and inserted heading.
Subsec. (g). Pub. L. 107–171, § 1603(b)(3), redesignated par. (7) as subsec. (g) and inserted heading.
1996—Pars. (1) to (4). Pub. L. 104–127 added pars. (1) to (4) and struck out former pars. (1) to (4) which established limitations on payments under wheat, feed grains, upland cotton, extra long staple cotton, honey, and rice programs for 1987 through 1997 crops.
1993—Pars. (1)(A), (B), (2)(A). Pub. L. 103–66 substituted “1997” for “1995”.
1991—Par. (2)(B)(iv). Pub. L. 102–237 inserted “section” before “107B(c)(1)”.
1990—Par. (1). Pub. L. 101–624, § 1111(a)(1), designated existing provisions as subpar. (A), substituted “1995” for “1990”, and added subpar. (B).
Par. (2)(A). Pub. L. 101–624, § 1111(a)(2), substituted “1991 through 1995 crops” for “1987 through 1990 crops” and substituted “and” for “honey, and (with respect to clause (iii)(II) of subparagraph (B))” after “rice,”.
Par. (2)(B)(iv). Pub. L. 101–624, § 1111(a)(3)(B), substituted “107B(c)(1) or 105B(c)(1)” for “section 107D(c)(1) or 105C(c)(1)”, and “section 107B(a)(3) or 105B(a)(3)” for “section 107D(a)(4) or 105C(a)(3)”.
Par. (2)(B)(v). Pub. L. 101–624, § 1111(a)(3)(C), added cl. (v) and struck out former cl. (v) which read as follows: “(v) any loan deficiency payment received for a crop of wheat, feed grains, upland cotton, or rice under section 107D(b), 105C(b), 103A(b), or 101A(b), respectively, of the Agricultural Act of 1949; and”.
Par. (2)(B)(vi). Pub. L. 101–624, § 1111(a)(3)(D), substituted “section 107B(f), 105B(f), 103B(f), or 101B(f)” for “section 107D(g), 105C(g), 103A(g), or 101A(g)”.
Par. (5)(B)(ii)(III). Pub. L. 101–624, § 1111(e), added subcl. (III).
“(ii) A tenant that because of any act or failure to act would otherwise be considered the same person as the landlord under clause (i) shall not be considered the same person as the landlord if the Secretary has at any time made a determination, for purposes of this section, regarding the number of persons with respect to the tenant’s operation on such land for the 1989 crop year and the landlord did not consent to or knowingly participate in such act or failure to act.
Pub. L. 101–217, § 1, in temporarily amending subpar. (D) generally, designated existing provisions as cl. (i) and added cls. (ii) and (iii). See Effective and Termination Dates of 1989 Amendment note below.
1987—Par. (1). Pub. L. 100–203, § 1301(a)(1), substituted “Subject to sections 1308–1 through 1308–3 of this title, for each” for “For each”.
Par. (2)(A). Pub. L. 100–203, § 1301(a)(2)(A), substituted “Subject to sections 1308–1 through 1308–3 of this title, for each” for “For each”.
Pub. L. 100–203, § 1301(a)(2)(B), which directed substitution of “Subject to sections 1308–1 through 1308–3 of this title, the total” for “The total” could not be executed in view of amendments by Pub. L. 100–71 and section 1307 of Pub. L. 100–203.
Pub. L. 100–71 designated existing provision as cl. (i) and added cl. (ii).
Par. (5)(B). Pub. L. 100–203, § 1303(a)(2), (3), added subpar. (B) and redesignated former subpar. (B) as (C).
Par. (5)(C). Pub. L. 100–203, § 1303(a)(3), redesignated subpar. (B) as (C).
Par. (5)(D), (E). Pub. L. 100–203, § 1303(a)(4), added subpars. (D) and (E).
Par. (7). Pub. L. 100–203, § 1305(c), added par. (7).
1986—Par. (1). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), in temporarily amending par. (1) generally, substituted provision limiting, for each of the 1987 through 1990 crops, the total amount of deficiency payments, excluding deficiency payments described in par. (2)(B)(I)(iv) and land diversion payments that any one person be entitled to as not to exceed $50,000 for provision limiting, for each of the 1986 through 1990 crops, the total amount of payments, excluding disaster payments, that any one person be entitled to as not to exceed $50,000. See Effective and Termination Dates of 1986 Amendment note below.
Par. (2). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), in temporarily amending par. (2) generally, designated existing provision as subpar. (A), and in subpar. (A) as so designated, substituted provision limiting, for each of the 1987 through 1990 crops, the total amount of payments set forth in subpar. (B) that any one person be entitled to as not to exceed $250,000 and inserting honey as an eligible crop for provision limiting, for each of the 1986 through 1990 crops, the total amount of disaster payments not any one person be entitled to as not to exceed $100,000, and added subpars. (B) and (C). See Effective and Termination Dates of 1986 Amendment note below.
Par. (3). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(1), temporarily substituted provision authorizing the Secretary, if he determines that a limitation will have an adverse effect on a program, to adjust upward such limitation as appropriate or necessary for provision specifying what is not included within the term “payments” as used in this section. See Effective and Termination Dates of 1986 Amendment note below.
Par. (5)(A). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(2), temporarily inserted provision that the term “person” not include any cooperative association of producers that markets commodities for producers with respect to the commodities so marketed for producers. See Effective and Termination Dates of 1986 Amendment note below.
Par. (6). Pub. L. 99–500 and Pub. L. 99–591, § 108(a)(3), temporarily substituted “lands or animals owned” for “lands owned” and inserted “or animals are husbanded”. See Effective and Termination Dates of 1986 Amendment note below.
Pub. L. 101–217, § 1, Dec. 11, 1989, 103 Stat. 1857, provided that the amendment made by that section is effective only for the 1989 crops.
Pub. L. 101–217, § 2, Dec. 11, 1989, 103 Stat. 1857, as amended by Pub. L. 101–624, title XI, § 1111(i), Nov. 28, 1990, 104 Stat. 3500, provided that the amendment made by that section is effective beginning with the 1990 crops.
Pub. L. 100–203, title I, §§ 1301(a), 1303, Dec. 22, 1987, 101 Stat. 1330–12, 1330–16, provided that the amendments made by sections 1301(a)(1), (2) and 1303 of Pub. L. 100–203 are effective beginning with 1989 crops.
Pub. L. 99–500, § 108(a), Oct. 18, 1986, 100 Stat. 1783–346, and Pub. L. 99–591, § 108(a), Oct. 30, 1986, 100 Stat. 3341–346, provided that the amendment made by Pub. L. 99–500 and Pub. L. 99–591 is effective with respect to each of the 1987 through 1990 crops.
The Secretary of Agriculture shall implement a payment provisions education program for appropriate personnel of the Department of Agriculture and members and other personnel of local, county, and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), for the purpose of fostering more effective and uniform application of the payment limitations and restrictions under sections 1001 through 1001C of the Food Security Act of 1985 [sections 1808 to 1308–3 of this title].
The education program shall provide training to such personnel in the fair, accurate, and uniform application to individual farming operations of the provisions of law and regulation relating to the payment provisions of sections 1001 through 1001C of the Food Security Act of 1985. Particular emphasis shall be given to the changes in the law made by sections 1301, 1302, and 1303 of this Act [enacting section 1308–1 of this title, amending this section, and enacting provisions set out as notes under this section and section 1308–1 of this title].
The education program shall be fully implemented, and the training completed, not later than 30 days after the date final regulations are issued to carry out the amendments made by this subtitle [enacting sections 1308–1 to 1308–3 of this title and amending this section and section 1308–1 of this title].
final regulations to carry out such amendments not later than August 1, 1988.
Any field instructions relating to, or other supplemental clarifications of, the regulations issued under sections 1001 through 1001C of the Food Security Act of 1985 [sections 1308 to 1308–3 of this title] shall not be used in resolving issues involved in the application of the payment limitations or restrictions under such sections or regulations to individuals, other entities, or farming operations until copies of the publication are made available to the public.
The Secretary of Agriculture shall review the regulations in effect on the date of enactment of this Act [Oct. 18, 1986] that define ‘person’ under section 1001 of the Food Security Act of 1985 [this section] and related regulations in effect on such date otherwise affecting the payment limitations under such section, to determine ways in which such regulations can be revised to better ensure the fair and reasonable application of limitations and eliminate fraud and abuse in the application of such payment limitations.
The Secretary also shall review the amendments to section 1001 of the Food Security Act of 1985 made by this section.

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