More Details on Farm Act Part II

After receiving some additional guidance, we now have some updated estimated payments and other information.

Photo by Nathan Anderson on Unsplash

I received the text for the Continuing Resolution last night right before heading out for two hours of pickleball (I try to play at least four times a week when I am home). After getting back from pickleball I then spent a few hours reading the CR and working up this morning’s blog post and as expected my reading of the text and the actual intent of Congress is different in some areas, both good and bad.

First, the good part. When I read the limit based on income of the farmer, I saw average of adjusted gross income. The actual text reads average gross income. This means that farmers will calculate this limit based on gross “sales” from farming and then compare that to total gross “income” including wages, interest, capital gains, etc. Whether this will include gains from selling or trading in farm equipment will be up to USDA to determine since they have the leeway in letting farmers know what is “farm” gross receipts and what is not “farm” gross receipts. Also, under current rules receiving wages or dividends from a farm corporation is farm income. We shall see if this remains true for this calculation.