PARKER, COLO. (RFD NEWS) — The U.S. Department of Agriculture (USDA) has finalized updated payment limitation and eligibility rules for farm programs, a move that could provide producers with greater flexibility when structuring their operations.
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to discuss the changes and what they could mean for farmers participating in USDA programs.
Neiffer provided background on a prior issue involving salaries and guaranteed payments to farmers made through pass-through entities, such as LLCs. He explained how the treatment of those payments created challenges for some producers when determining eligibility for certain farm program benefits.
He also discussed the USDA’s newly finalized rule and whether the changes effectively address concerns raised by producers and agricultural groups regarding payment limitations and eligibility requirements.
Finally, Neiffer further outlined when the updated rules take effect and what farmers should know as they evaluate how the changes may impact their operations.
