TITLE 7 - AGRICULTURE

SUBTITLE B - REGULATIONS OF THE DEPARTMENT OF AGRICULTURE

CHAPTER XIV - COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE

SUBCHAPTER A - GENERAL REGULATIONS AND POLICIES

PART 1400 - PAYMENT LIMITATION AND PAYMENT ELIGIBILITY

subpart e - CASH RENT TENANTS

1400.401 - Eligibility.

  (a) Any tenant that is actively engaged in farming in accordance with the provisions of subpart C and conducts a farming operation in which the tenant rents the land for cash, for a crop share guaranteed as to the amount of the commodity, or by any arrangement in which the tenant does not compensate the landlord by cash or a crop share, and receives benefits, with respect to such land under a program specified in 1400.1(a) shall be ineligible to receive any payment with respect to such cash-rented land unless the tenant makes a significant contribution to the farming operation of: (1) Active personal labor; or (2) Active personal management and equipment. If such equipment is leased by the tenant from: (i) The landlord, the lease must reflect the fair market value of the equipment leased; and (ii) The same individual or entity that is providing hired labor to the farming operation, the contracts for the lease of the equipment and for the hired labor must be two separate contracts that reflect the fair market value of the leased equipment and the hired labor and the tenant must exercise complete control over the use of a significant amount of the equipment during the current crop year.

  (b) [Reserved]