GP and JVs are now "Legal Entities" for ECAP Purposes

This means if you want to qualify for an increased payment both the entity and you will need to qualify.

Photo by Federico Respini on Unsplash

For most farm programs such as ARC and PLC general partnership and joint ventures are “counted” for purposes of payment limits or AGI calculations.

However, for purposes of the new Emergency Commodity Assistance Program just released earlier this week they are treated as a “legal entity”. This now means that both the GP or JV will need to file Form CCC-943 to certify that they meet the more than 75% gross income test and also each partner.

If one or more partners do not meet the more than 75% test, then the extra payment limit will be reduced by their ownership percentage.

Also, remember that the following items of revenue are automatically considered to be farm income even though for income tax purposes they typically are not considered farm income: