The 2008 Farm Bill included an average Adjusted Gross Income (AGI) provision to restrict payments to individuals whose income is above the authorized limit. This week, growers who may have exceeded the AGI amount will receive a letter from the USDA as they try to administer this portion of the ’08 bill.
The USDA is working with the Internal Revenue Service, performing computerized calculations to determine which producers may have earned more than the AGI limit based on their 2009 or 2010 incomes. The resulting USDA letter to farmers who may be over the limit will request farmers to contact their State FSA office. Farmers will have 30 days to provide third party verification from a CPA or attorney that their income did not exceed statutory limitations or review their Federal income taxes with their state FSA office to demonstrate compliance.
If you receive an AGI compliance letter from the USDA, contact your FSA office. A call to your CPA or attorney may be necessary to provide verification that you are under the AGI limit.
Producers who have exceeded the limit will be offered appeal rights to the FSA or the National Appeals Division.