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Sec. 10308. Adjusted gross income limitation

Official source: Public Law 119-21, Section 10308 — 139 Stat. 92-93.

Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—

(1) in paragraph (1), by striking “

paragraph (3)

” and inserting “

paragraphs (3) and (4)

”; and

(2) by adding at the end the following:

“(4) Exception for certain operations.—

“(A) Definitions.—

In this paragraph:

“(i) Excepted payment or benefit.—

The term ‘excepted payment or benefit’ means—

“(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.);

“(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

“(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024.

“(ii) Farming, ranching, or silviculture activities.—

The term ‘farming, ranching, or silviculture activities’ includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary.

“(B) Exception.—

In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.”

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