Source: Paul Neiffer, AGWEB, 8/13/20


MFP and CFAP allows your average adjusted gross income (AGI) to exceed $900,000 as long as more than 75% of your income is from farming.  Average AGI is based upon a three-year average excluding the most immediate tax year.  For example, CFAP is a 2020 program and average AGI is based upon 2016-2018. The FSA definition of farming income has always been a bit murky.  In their manual they had always taken the position that wages could never be farm income.  Also, they had not addressed whether dividends from an IC-DISC was farm income or not.  

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