Form Ccc-926 - Average Adjusted Gross Income (Agi) Statement Page 2

Download a blank fillable Form Ccc-926 - Average Adjusted Gross Income (Agi) Statement in PDF format just by clicking the "DOWNLOAD PDF" button.

Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.

Complete Form Ccc-926 - Average Adjusted Gross Income (Agi) Statement with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.

Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.

CCC-926

(11-20-08)

Page 2 of 2

GENERAL INFORMATION ON AVERAGE ADJUSTED GROSS INCOME

Limitations related to income levels are a statutory payment eligibility provision for a number of commodity and conservation programs administered by CCC.

This certification is needed to assist in program administration. Except as may be provided in applicable program regulations, any person or legal entity

requesting certain program payments, either directly or indirectly, shall be subject to this provision. Any person or legal entity that is determined to have an

average adjusted gross income that exceeds specified limits shall be ineligible for the program payment subject to that limit for the applicable crop, fiscal, or

program year. Further, any covered benefit issued to a legal entity, general partnership, or joint venture shall be reduced by an amount that is commensurate

with the direct or indirect ownership interest in the legal entity, general partnership, or joint venture of each person or legal entity whose relevant average

adjusted gross income for the relevant period exceeds the average adjusted gross income limit. These determinations will be made pursuant to, and subject to,

regulations issued on behalf of the Secretary. As of the time this form was created, the applicable limits were as follows:

For commodity, price support benefits, disaster assistance programs, and for the Milk Income Loss Compensation Program, if the person or legal

entity has:

• average adjusted gross nonfarm income greater than $500,000, the person or legal entity is not eligible for payments and benefits from these programs.

• average adjusted gross farm income greater than $750,000, the person or legal entity is not eligible for direct payments under the Direct and Counter-

cyclical Program.

For new contracts or participation in conservation programs after October 1, 2008, if the person or legal entity has:

• average adjusted gross nonfarm income greater than $1 million, the person or legal entity is not eligible, unless 66.66 percent or more of the average

adjusted gross income is attributable to activities related to farming defined as “farm income” below.

Please note as indicated above that payments are further limited if persons and legal entities with an interest, either directly or indirectly, in a legal entity or

partnership exceeds these same levels. Those persons and legal entities must also submit this form.

DEFINITIONS

Adjusted Gross Income is the individual’s or legal entity’s IRS-reported adjusted gross income. A three year average of that income will be computed for the

three years of the relevant base period. Base periods vary by program year as indicated on the first page of this form.

Adjusted Gross Farm Income is for a year that part of the adjusted gross income that is farm income as defined below. The amount will be computed for

each year separately and then averaged.

Adjusted Gross Nonfarm Income is the difference for the year between the filer’s adjusted gross income and the filer’s adjusted gross farm income. The

difference shall be computed for each year of the base period, and then averaged.

Farm income means income related to the following: production of crops, livestock, fish and aquaculture for food; the feeding and rearing of livestock;

products produced or derived from livestock; production of specialty crops and unfinished raw forestry products; processing, packing, storing and transporting

farm, ranch and forestry commodities including renewable energy; production of farm-based renewable energy; the sale of land used for agriculture; sale of

land or sale of easements and development rights to agricultural land, water and hunting rights, and environmental benefits; rental or lease of land or

equipment used in farming, ranching, forestry operations; payments and benefits from risk management practices, crop insurance indemnities, catastrophic risk

protection plans, conservation programs and government farm program payments. Proceeds from the sale of farm equipment and from production inputs to

farmers and ranchers are generally considered nonfarm income. However, if for a year not less than 66.66 percent of the average adjusted gross income of

the person or legal entity is derived from farming, ranching, or forestry operations, the person’s or legal entity’s farm income shall also include the sale of

equipment to conduct farm, ranch, or forestry operations, and the production inputs and services to farmers, ranchers, foresters, and farm operations.

Legal Entity is 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 as a participant

in a similar entity, including joint ventures and general partnerships as determined by the Secretary.

Program year means the relevant program year as determined by CCC, for which a specific benefit is made available under a program authorized by

legislation such as the Direct and Counter-cyclical Program, Milk Income Loss Contract Program, Conservation Reserve Program, Noninsured Crop Disaster

Assistance Program, Supplemental Revenue Assistance Program. FSA may require additional information as necessary to make the relevant program

payments.

Third-party verification means a signed statement from a certified public accountant (CPA) or an attorney that the person or legal entity meets the applicable

AGI provisions for payment eligibility.

HOW TO DETERMINE ADJUSTED GROSS INCOME

Person. For persons that file the IRS Form 1040, specific lines on that form represent the adjusted gross income and the income from farming, ranching or

forestry operations.

Trust or Estate. For a trust or estate, the adjusted gross income is the total income and charitable contributions reported to IRS.

Corporation. For a corporation, the adjusted gross income is the total of the final taxable income and any charitable contributions reported to IRS.

Limited Partnership (LP), Limited Liability Company (LLC), Limited Liability Partnership (LLP) or Similar Entity. For an LP, LLC or LLP, the adjusted

gross income is the total income from trade or business activities plus guaranteed payments to the members as reported to the IRS.

Tax-exempt Organization. For a tax-exempt organization, the adjusted gross income is the unrelated business taxable income excluding any income from

non-commercial activities as reported to the IRS.