Adjusted Gross Income

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Adjusted Gross Income

The 2018 Farm Bill requires the implementation of an average AGI limitation for payment eligibility, ($900,000). This limitation provision applies to most programs administered by the Farm Service Agency (FSA) and Natural Resource and Conservation Service (NRCS).

All persons and legal entities requesting certain program payments, either directly or indirectly, are subject to the AGI limitation provisions. Participants in programs subject to AGI rules must annually certify their eligibility to receive program benefits. IRS requires written consent from the individual or legal entity to provide USDA verification of compliance with AGI limitation provisions. The annual certification is made possible by completing the CCC-941 form, Average Adjusted Gross Income Certification and Consent to Disclosure of Tax Information. The AGI limitation takes into consideration the 3 taxable years preceding the immediate preceding tax year for which payments/benefits are being requested.

About the Program

Frequently Asked Questions

Who must meet AGI?

  • Individuals
  • Entities & members
  • Members of general partnerships
  • Indians and Native Americans represented by the BIA

How is AGI Computed for an Individual?

Average 3 years of income from Line 37 of the 1040 form.

How is AGI Computed for an Entity?

Corporations filing a 1120 tax form

  • Total Taxable Income (Line 30) + Charitable Contributions (Line 19)

Corporations filing a 1120S tax form

  • Ordinary Business Income (Line 21)

Estate and Trusts filing a 1041 tax form

  • Taxable Income (Line 23) + Charitable Contributions (Line 19)

LLC, LLP, LP, or other similar entity filing a 1065 tax form

  • Total Income from Business/Trade (Line 22) + Guarantee Payments to Partners (Line 10)

Tax Exempt or Charitable Organizations filing a 990-T tax form

  • Unrelated Business Taxable Income (Line 38) minus Income from Non-Commercial Activity

Which Tax Years are used for Computing AGI?

Average of the 3 taxable years preceding the most immediately preceding complete taxable year.

  • Example for 2020 program year, then average tax years 2016-2017-2018

What Programs Require AGI?

Link to chart in 6-PL

If for FSA or NRCS multi-year conservation contracts which AGI Form Do I File?

  • If CRP Contract approved between (May 13, 2002 – Oct 1, 2008) CCC-526C
  • If CRP Contract approved between (Oct 1, 2008 – Sept. 30, 2013) CCC-931C
  • If CRP Contract approved between (Oct 1, 2013 – Sept. 30, 2014) No AGI Required
  • If CRP Contract approved between (Oct 1, 2014 – Sept. 30, 2023) form CCC-941