Texas Farm Bureau (TFB) has requested USDA extend the June 1 farm structure status change deadline to Dec. 31, 2016, to allow farms additional time to meet the new regulations outlined in the farm bill.
“The timing for the change to farms is difficult due to field activities and the fact that 2016 crop year decisions have been made on existing structures,” Brant Wilbourn, TFB associate director of Commodity and Regulatory Activities, told the TFB Radio Network.
On Dec. 15, 2015, USDA released its final rule implementing the 2014 Farm Bill changes to Payment Limitations and Payment Eligibility relative to modified definitions of “actively engaged.”
These changes are aimed at determining farm bill eligibility for active managers of farms that operate as joint ventures or general partnerships. Because of these revised definitions of active farm management and actions that activate farm management duties in the new regulations, many farm operations will have to restructure in order to comply with the new “actively engaged” regulations.
Per the farm bill’s provisions, these changes go into effect for the 2016 crop year for most farms. There is an exception for farms that have already planted fall crops for 2016—the compliance deadline for these farms is the 2017 crop year. Farm Service Agency (FSA) handbook regulations and training for county FSA staff concerning these changes were not finalized until March 2016.