Attention all USDA customers

If you received any USDA payments in 2009 or expect to in 2010, please read the rest of this news release.

Some years back, in order to direct USDA program benefits to "real farmers and ranchers" instead of those who were simply investing in agricultural land, some added eligibility requirements were added through the farm programs legislation. Limiting benefits to the larger producers was also an objective of program revisions.

One of those eligibility regulations involves a limitation on Adjusted Gross Income, or AGI in order to qualify for benefits. This restriction has become increasingly limiting through the years, and now stands basically at a $500,000 AGI limit for non-farm income; or $750,000 for farm income.

In more straightforward terms, someone whose adjusted gross non-farm income averages $500,000 or more over a stated 3-year period is not eligible to receive USDA program benefits. In like manner, the person with farm-based AGI averaging $750,000 or more also does not qualify for USDA program benefits.

When someone signs up to participate in a USDA program, they file a certification (a CCC-926 form) stating where their income falls according to the established AGI limits. Those eligible can then be paid under the program. Those indicating AGI in excess of these limits are not paid program benefits.

Most folks involved in farming or ranching in this part of the country do not exceed these levels, so most are eligible for payments. However, there are some producers in this area, as well as several nationwide, who do not qualify for benefits as shown by their certification on the CCC-926 form.

In an effort to monitor compliance with this requirement, USDA is seeking assistance from the Internal Revenue Service (IRS) to verify this certification from program participants through their applicable tax records. The objective is to ask the IRS if a program participant exceeds these AGI levels. IRS will then answer "yes" or "no" thus advising USDA whether or not that individual is payment eligible according to the AGI policy.

However, before the IRS will release this information for an individual, they are requiring a "Consent to Disclose" authorization from the named taxpayer. The required form is a CCC-927 for an individual, and a CCC-928 for an entity.

So this is where we now stand: USDA intends to check the AGI with IRS for each person receiving any kind of payment for 2009 and 2010. Anyone wishing to keep their 2009 payment amount or receive payments in 2010, then, must provide the completed consent form to IRS no later than June 15, 2010.

USDA has blank forms available for anyone who asks. However, the completed form must be provided directly to IRS (at the address shown on the form) in order to meet this requirement. After June 15, 2010, the Farm Service Agency (FSA) will begin the process of collecting back payments from all producers who have failed to meet this consent requirement.

The form is uncomplicated requiring only a producer's name, address, SS number, marks in boxes for BOTH 2009 and 2010, and signature, then mail to the address provided.

All FSA offices have the needed forms, or find a blank on the FSA forms website by going to www.fsa.usda.gov and click on the "Forms" button in the green tool bar at the top of the screen. On the resulting eForms screen, click on "Browse forms" on the top left. On the next screen (which has blanks for several pieces of information), you only need to enter "927" or "928" in the Form Number space to get to form.

Anyone with questions about this process, or needing a blank form, please contact the FSA at your local USDA Service Center. In Bourbon County, call (620) 223-1880.