A maximum dollar amount has been established by legislation for each program that can be received annually, directly or indirectly, by each person or legal entity. Such limitations on payments are controlled by direct attribution. Program payments made directly or indirectly to a person are combined with the pro rata interest held in any legal entity that received payment, unless the payments to the legal entity have been reduced by the pro rata share of the person.
Program payments made directly to a legal entity are attributed to those persons that have a direct and indirect interest in the legal entity, unless the payments to the legal entity have been reduced by the pro rata share of the person. Payment attribution to a legal entity is tracked through four levels of ownership. If any part to the ownership interest at the fourth level is owned by another legal entity, a reduction in payment will be applied to the payment entity in the amount that represents the indirect interest of the fourth level entity in the payment entity.
For the purposes of the direct attribution of payments, ownership interest that a person or legal entity holds in a legal entity on June 1 of the current year is used. Direct attribution of payments is not applicable to cooperative associations of producers. The payments will instead be attributed to the members of the association that produced the commodities marketed by the association on behalf of the members.
Current limitations for program payments
Program Payment Type
Limitation (In Dollars)2009-2013
Direct payments on covered commodities except peanuts
Direct payments on peanuts
Counter-cyclical and Average Crop Revenue Election (ACRE) payments on covered commodities except peanuts
Counter-cyclical and ACRE payments on peanuts
Price support programs
Conservation Reserve Program (CRP) annual rental payment
Environmental Quality Incentive Program (EQIP) (all contracts for FY 2009-13).
Cost Conservation Stewardship Program (CSTP) (all contracts for FY 2009-13)
Grassland Reserve Program(GRP)
Wetlands Reserve Program (WRP)
Wildlife Habitat Incentives Program (WHIP)
Disaster and Livestock assistance programs
Non-Insured Crop Disaster Assistance Program (NAP)
Supplemental Revenue Assistance Payments (SURE) program, Livestock Indemnity Program (LIP), Livestock Forage Program (LFP) and Emergency Assistance for Livestock, Honey Bees and Farm-Raised Fish (ELAP)
Tree Assistance Program (TAP)
Trade Adjustment Assistance (TAA)
1. If the person or legal entity has a direct or indirect interest in payments earned on a farm that is in ACRE, this limitation will reflect a 20 percent reduction in direct payments on each farm that is participating in ACRE.
2. Under ACRE, this amount will be a combined limitation for counter-cyclical and ACRE payments. If a person or legal entity has a direct or indirect interest in payments earned on a farm participating in ACRE, this limitation will reflect an increase for the amount that the direct payments were reduced.
3. TAA payments and counter-cyclical payments received by a person or legal entity for the same program or fiscal year are limited to combined total of $65,000 if counter-cyclical payments are received for covered commodities or peanuts; or a total of $130,000 if counter-cyclical payments are received for both covered commodities and peanuts.
Regulations and Procedures