CCC-902I (09-28-20) Page 4 of 4
DEFINITIONS
The following definitions apply to Form CCC-902I.
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 this farming operation if the person or legal entity
owns or rents land to this farming operation; or has an interest in the crop or crop proceeds from this farming operation; or is a member of a joint operation that
either owns or rents land to this farming operation, or has an interest in the crop or crop proceeds from this farming 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. 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 significant 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 with an interest in the farming operation. A significant contribution of 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 non-borrowed (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 the provision of land, capital or equipment assets, and providing active personal labor, or active
personal management to the farming operation in exchange for, or 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 to conduct activities of the farming operation including machinery
and implements used for land preparation, planting, cultivating, harvesting or marketing crops. Equipment also includes machinery and implements needed to
establish and maintain conserving covers.
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 OPERATION - is a business enterprise engaged in the production of agricultural products which is operated by a person or legal entity which is
eligible to receive payments, directly or indirectly.
LAND – with a respect to a contribution to a farming operation is farmland 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.
16. All other terms utilized in this form shall be defined pursuant to 7 CFR Part 1400.
The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a – as amended). The authority for requesting the information identified on this form is 7 CFR Part 1400,
the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), the Agricultural Act of 2014 (Pub. L. 113-79), and the Agriculture Improvement Act of 2018 (Pub. L. 115-334). The
information will be used to identify the farm operating plan data needed to determine an individual’s eligibility for program benefits. The information collected on this form may be disclosed to
other Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described
in applicable Routine Uses identified in the System of Records Notice for USDA/FSA-2, Farm Records File (Automated). Providing the requested information is voluntary. However, failure to
furnish the requested information will result in a determination of ineligibility for program benefits.
Paperwork Reduction Act (PRA) Statement: This information collection is exempted from the Paperwork Reduction Act as specified in 7 U.S.C. 9091(c)(2)(B).
Public Burden Statement: For CFAP 2.0 only, public reporting burden for this collection is estimated to average 5 minutes per response, including reviewing instructions, gathering and
maintaining the data needed, completing (providing the information), and reviewing the collection of information. You are not required to respond to the collection, or USDA may not conduct or
sponsor a collection of information unless it displays a valid OMB control number. RETURN THIS COMPLETED FORM TO YOUR COUNTY FSA OFFICE.