,,ii #aac? ,,congress #a/ ,session ,s4 #bha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #ab1 #bjac ,mr4 ,grassley 7= himself1 ,mr4 ,johnson ( ,s\? ,dakota1 ,mr4 ,enzi1 & ,mr4 ,br[n7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,agriculture1 ,nutrition1 & ,=e/ry ,a ,,bill ,to am5d ! ,food ,security ,act ( #aihe to re/ore integrity to & /r5g!n paym5t limitation rules = commodity paym5ts & b5efits4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,f>m ,program ,integrity ,act ( #bjac4 #b4 ,paym5t limitations 7a7 ,9 g5]al ,section #ajja ( ! ,food ,security ,act ( #aihe 7#g ,u4,s4,c4 #acjh7 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ p>agraph 7#c7 & ins]t+ ! foll[+3 7#c7 ,legal entity 7,a7 ,9 g5]al ,! t]m legal entity means-- 7i7 an organization t 7subject to ! requirem5ts ( ?is section & section #ajja;,a7 is eligible to receive a paym5t "u a provision ( law ref]r$ to 9 subsection 7b71 7c71 or 7d72 7ii7 a corporation1 jo9t /ock company1 association1 limit$ p>tn]%ip1 limit$ liability company1 limit$ liability p>tn]%ip1 *>itable organization1 e/ate1 irrevocable tru/1 grantor ( a revocable tru/1 or o!r simil> entity 7z det]m9$ by ! ,secret>y72 & 7iii7 an organization t is p>ticipat+ 9 a f>m+ op]ation z a p>tn] 9 a g5]al p>tn]%ip or z a p>ticipant 9 a jo9t v5ture4 7,b7 ,exclusion ,! t]m legal entity does n include a g5]al p>tn]%ip or jo9t v5ture4 2 7#b7 by /rik+ subsections 7b7 ?r\gh 7d7 & ins]t+ ! foll[+3 7b7 ,limitation on paym5ts = cov]$ commodities & peanuts ,! total am\nt ( paym5ts receiv$1 directly or indirectly1 by a p]son or legal entity = any crop ye> = #a or m cov]$ commodities & peanuts "u title ,i ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgja et seq47 7or a successor provision7 may n exce$ #abe1jjj1 ( :i*-- 7#a7 n m ?an #ge1jjj may consi/ ( m>ket+ loan ga9s & loan defici5cy paym5ts "u subtitle ,b or ,c ( title ,i ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgca et seq47 7or a successor provision72 & 7#b7 n m ?an #ej1jjj may consi/ ( any o!r paym5ts made = cov]$ commodities & peanuts "u title ,i ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgjb et seq47 7or a successor provision74 7c7 ,sp\sal equity 7#a7 ,9 g5]al ,not)/&+ subsection 7b71 except z provid$ 9 p>agraph 7#b71 if a p]son & ! sp\se ( ! p]son are cov]$ by p>agraph 7#b7 & receive1 directly or indirectly1 any paym5t or ga9 cov]$ by ?is section1 ! total am\nt ( paym5ts or ga9s 7z applicable7 cov]$ by ?is section t ! p]son & sp\se may jo9tly receive dur+ any crop ye> may n exce$ an am\nt equal to twice ! applicable doll> am\nts specifi$ 9 subsection 7b74 7#b7 ,exceptions 7,a7 ,sep>ate f>m+ op]ations ,9 ! case ( a m>ri$ c\ple 9 :i* ea* sp\se1 be=e ! m>riage1 0 sep>ately engag$ 9 an unrelat$ f>m+ op]ation1 ea* sp\se %all be treat$ z a sep>ate p]son ) respect to a f>m+ op]ation br\ght into ! m>riage by a sp\se1 subject to ! condition t ! f>m+ op]ation %all rema9 a sep>ate f>m+ op]ation1 z det]m9$ by ! ,secret>y4 7,b7 ,election to receive sep>ate paym5ts ,a m>ri$ c\ple may elect to receive paym5ts sep>ately 9 ! "n ( ea* sp\se if ! total am\nt ( paym5ts & b5efits describ$ 9 subsection 7b7 t ! m>ri$ c\ple receives1 directly or indirectly1 does n exce$ an am\nt equal to twice ! applicable doll> am\nts specifi$ 9 ^? subsections4 2 7#c7 9 p>agraph 7#c77;,b7 ( subsection 7f71 by add+ at ! end ! foll[+3 7iii7 ,irrevocable tru/s ,9 promulgat+ regulations to def9e ! t]m legal entity z ! t]m applies to irrevocable tru/s1 ! ,secret>y %all ensure t irrevocable tru/s are legitimate entities t h n be5 creat$ = ! purpose ( avoid+ a paym5t limitation4 2 & 7#d7 9 subsection 7h71 9 ! second s5t5ce1 by /rik+ or o!r entity & ins]t+ or legal entity4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #ajja ( ! ,food ,security ,act ( #aihe 7#g ,u4,s4,c4 #acjh7 is am5d$-- 7,a7 9 subsection 7e71 by /rik+ subsections 7b7 & 7c7 ea* place x appe>s 9 p>agraphs 7#a7 & 7#c77;,b7 & ins]t+ subsection 7b72 7,b7 9 subsection 7f7-- 7i7 9 p>agraph 7#b71 by /rik+ ,subsections 7b7 & 7c7 & ins]t+ ,subsection 7b72 7ii7 9 p>agraph 7#d77;,b71 by /rik+ subsection 7b7 or 7c7 & ins]t+ subsection 7b72 7iii7 9 p>agraph 7#e7-- 7,i7 9 subp>agraph 7,a71 by /rik+ subsection 7d72 & 7,,ii7 9 subp>agraph 7,b71 by /rik+ subsection 7b71 7c71 or 7d7 & ins]t+ subsection 7b72 & 7iv7 9 p>agraph 7#f7-- 7,i7 9 subp>agraph 7,a71 by /rik+ ,not)/&+ subsection 7d71 except z provid$ 9 subsection 7g7 & ins]t+ ,except z provid$ 9 subsection 7f72 & 7,,ii7 9 subp>agraph 7,b71 by /rik+ subsections 7b71 7c71 & 7d7 & ins]t+ subsection 7b72 7,c7 9 subsection 7g7-- 7i7 9 p>agraph 7#a7-- 7,i7 by /rik+ subsection 7f77#f77;,a7 & ins]t+ subsection 7e77#f77;,a72 & 7,,ii7 by /rik+ subsection 7b7 or 7c7 & ins]t+ subsection 7b72 & 7ii7 9 p>agraph 7#b77;,a71 by /rik+ subsections 7b7 & 7c7 & ins]t+ subsection 7b72 & 7,d7 by r$esignat+ subsections 7e7 ?r\gh 7h7 z subsections 7d7 ?r\gh 7g71 respectively4 7#b7 ,section #ajja;,a ( ! ,food ,security ,act ( #aihe 7#g ,u4,s4,c4 #acjh-a7 is am5d$-- 7,a7 9 subsection 7a71 by /rik+ subsections 7b7 & 7c7 ( section #ajja & ins]t+ section #ajja7;b72 & 7,b7 9 subsection 7b77#a71 by /rik+ subsection 7b7 or 7c7 ( section #ajja & ins]t+ section #ajja7;b74 7#c7 ,section #ajja;,b7a7 ( ! ,food ,security ,act ( #aihe 7#g ,u4,s4,c4 #acjh-b7;a77 is am5d$ 9 ! matt] prec$+ p>agraph 7#a7 by /rik+ subsections 7b7 & 7c7 ( section #ajja & ins]t+ section #ajja7;b74 7c7 ,application ,! am5dm5ts made by ?is section %all apply beg9n+ ) ! #bjad crop ye>4 #c4 ,paym5ts limit$ to active f>m]s ,section #ajja;,a ( ! ,food ,security ,act ( #aihe 7#g ,u4,s4,c4 #acjh-a7 is am5d$-- 7#a7 9 subsection 7b77#b7-- 7,a7 by /rik+ or active p]sonal managem5t ea* place x appe>s 9 subp>agraphs 7,a77i77,,ii7 & 7,b77ii72 & 7,b7 9 subp>agraph 7,c71 by /rik+ 1 z appli$ to ! legal entity1 are met by ! legal entity1 ! p>tn]s or memb]s mak+ a significant contribution ( p]sonal labor or active p]sonal managem5t & ins]t+ are met by p>tn]s or memb]s mak+ a significant contribution ( p]sonal labor1 ^? p>tn]s or memb]s2 & 7#b7 9 subsection 7c7-- 7,a7 9 p>agraph 7#a7-- 7i7 by /rik+ subp>agraph 7,a7 & ins]t+ ! foll[+3 7,a7 ! l&[n] %>e-r5ts ! l& at a rate t is usual & cu/om>y2 2 7ii7 9 subp>agraph 7,b71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7iii7 by add+ at ! end ! foll[+3 7,c7 ! %>e ( ! paym5ts receiv$ by ! l&[n] is comm5surate ) ! %>e ( ! crop or income receiv$ z r5t4 2 7,b7 9 p>agraph 7#b77;,a71 by /rik+ active p]sonal managem5t or2 7,c7 9 p>agraph 7#e7-- 7i7 by /rik+ 7#e7 & all t foll[s ?r\gh 7,a7 ,9 g5]al4--,a p]son & ins]t+ ! foll[+3 7#e7 ,cu/om f>m+ s]vices ,a p]son 2 7ii7 by ins]t+ "u usual & cu/om>y t]ms aft] s]vices2 & 7iii7 by /rik+ subp>agraph 7,b72 & 7,d7 by add+ at ! end ! foll[+3 7#g7 ,f>m manag]s ,a p]son :o o!rwise meets ! requirem5ts ( ?is subsection o!r ?an 7b77#b77;,a77i77,,ii7 %all be consid]$ to be actively engag$ 9 f>m+1 z det]m9$ by ! ,secret>y1 ) respect to ! f>m+ op]ation1 includ+ a f>m+ op]ation t is a sole proprietor%ip1 a legal entity su* z a jo9t v5ture or g5]al p>tn]%ip1 or a legal entity su* z a corporation or limit$ p>tn]%ip1 if ! p]son-- 7,a7 makes a significant contribution ( managem5t to ! f>m+ op]ation necess>y = ! f>m+ op]ation1 tak+ into acc\nt-- 7i7 ! size & complexity ( ! f>m+ op]ation2 & 7ii7 ! managem5t requirem5ts normally & cu/om>ily requir$ by simil> f>m+ op]ations2 7,b7 7i7 is ! only p]son 9 ! f>m+ op]ation qualify+ z actively engag$ 9 f>m+ by us+ ! f>m manag] special class designation "u ?is p>agraph2 & 7ii7 toge!r ) any o!r p]sons 9 ! f>m+ op]ation qualify+ z actively engag$ 9 f>m+ "u subsection 7b77#b7 or z "p ( a special class "u ?is subsection1 does n collectively receive1 directly or indirectly1 an am\nt equal to m ?an ! applicable limits "u section #ajja7;b72 7,c7 does n use ! managem5t contribution "u ?is p>agraph to qualify z actively engag$ 9 m ?an #a f>m+ op]ation2 & 7,d7 manages a f>m op]ation t does n sub/antially %>e equipm5t1 labor1 or managem5t ) p]sons or legal entities t ) ! p]son collectively receive1 directly or indirectly1 an am\nt equal to m ?an ! applicable limits "u section #ajja7;b74 4