CCC-902E (09-28-20) Page 6 of 6
DEFINITIONS
The following definitions apply to Form CCC-902E.
ACTIVELY ENGAGED IN FARMING – means providing both: 1) significant contributions of capital, equipment, or land, or combination thereof to the farming
operation; and 2) significant contributions of active personal labor or active personal management, or a combination thereof, to the farming operation as described.
Further, for a person or legal entity to be considered actively engaged in farming for program payment purposes, the contributions of the person or legal entity must
be at-risk and commensurate with the person's or legal entity's claimed share of the profit and loss of the farming operation. Failure to meet these requirements will
result in the determination of ineligibility for payments under programs specified in 7 CFR Part 1400.
INTEREST IN A FARMING OPERATION – a person or legal entity is considered to have an interest in a particular farming operation if the person or legal
entity owns or rents land to or from that farming operation; has an interest in the agricultural commodities produced on the operation; or is a member of a joint
operation that either owns or rents land to or from the farming operation, or has an interest in the agricultural commodities produced on that operation.
3. JOINT OPERATION - is a general partnership, joint venture, or similar organization.
4. PERSON – is a natural person (an individual) and does not include a legal entity.
ACTIVE PERSONAL LABOR – a person is considered to be providing active personal labor with respect to a farming operation if that person is directly and
personally providing physical activities necessary to conduct the farming operation, including land preparation, planting, cultivating, harvesting, and marketing of
agricultural commodities in the farming operation. Other qualifying physical activities include establishing and maintaining conserving covers and those physical
activities necessary for livestock production for the farming operation.
ACTIVE PERSONAL MANAGEMENT – a person is considered to be providing active personal management with respect to a farming operation if that person
is directly and personally providing the general supervision and direction of activities and labor involved in the farming operation; or providing services (whether
performed on-site or off-site) reasonably related and necessary to the farming operation. The management activities must be critical to the profitability of the
farming operation and performed under one or more of the following categories: 1) Capital which includes arranging financing and managing capital; acquiring
equipment; acquiring land and negotiating leases; managing insurance and participating in USDA programs; 2) Labor which includes hiring and managing of hired
labor; 3) Agronomics and marketing which includes selecting crops and making planting decisions; acquiring and purchasing of crop inputs; managing crops and
making harvesting decisions; pricing and marketing of crop production.
CAPITAL – with respect to a farming operation is the funding provided by a person or legal entity to the farming operation in order for such operation to conduct
farming activities. To be considered a countable contribution for a person or legal entity, the capital must have been derived from a fund or account separate and
distinct from that of any other person or entity involved in such operation. Countable capital does not include the value of any labor or management which is
contributed to the farming operation. A capital contribution may be a direct out-of-pocket input of a specified sum or an amount borrowed by the person or entity.
Capital does not include advance program payments.
CONTRIBUTION – with respect to a farming operation, is providing land, capital or equipment assets, and providing active personal labor, or active personal
management to the farming operation in exchange for, or with the expectation of, deriving benefits based solely on the success of the farming operation.
Contributions must be “significant”.
CUSTOM SERVICES – with respect to a farming operation is the hiring of a contractor or vendor that is in the business of providing such specialized services to
perform services for the farming operation in exchange for the payment of a fee for such services performed.
ENTITY - is a corporation, joint stock company, limited liability company, association, limited partnership, limited liability partnership, irrevocable trust, revocable
trust, estate, charitable organization, or other similar organization including any such organization participating in the farming operation as a partner in a general
partnership, participant in a joint venture, a grantor of a revocable trust, or as a participant in a similar organization.
EQUIPMENT – with respect to a farming operation is the machinery and implements needed by the farming operation to conduct activities of the farming operation
including machinery and implements involved in land preparation, planting, cultivating, harvesting or marketing of the crops produced by the farming operation.
Equipment also includes machinery and implements needed to establish and maintain conserving covers.
13.
FAMILY MEMBER – a person is considered to be a family member of another person in the farming operation if that person is related to the other person as a
lineal ancestor, lineal descendant, sibling, 1st cousin, niece, nephew, spouse, or otherwise by marriage. This relationship includes great grandparent, grandparent,
parent, child (including legally adopted children and stepchildren), grandchild, great grandchild, sibling, 1st cousin, niece, nephew, aunt, uncle or spouse of family
member in the farming operation.
FARMING ENTITY – is the entity, including a combination of entities, conducting a farming operation at one or more locations.
FARMING OPERATION - is a business enterprise engaged in the production of agricultural products which is operated by a person or formal or informal entity
which is eligible to receive payments, directly or indirectly.
LAND – with a respect to a contribution to a farming operation is agricultural land consisting of cropland, pastureland, wetland, or rangeland which meets the
specific requirements of the applicable program for which payments or benefits are sought.
SUPPORTING DOCUMENTATION – is any information that supports the relevant representations made such as, but not limited to: articles of incorporation;
corporate meeting minutes; stock certificates; organizational papers; trust agreement; last will or testament or a deceased individual; affidavit of heirship approved by
Office of General Counsel; partnership agreement; property lease agreement; purchase agreement; land deed; lending security agreement; and financial statement.
17. All other terms utilized in this form shall be defined pursuant to 7 CFR Part 1400.