Interviews
Farm law implementation needs clear direction - NCC
26 Jun '09
4 min read
Hardwick noted the hardships and uncertainty posed by new income tests. He said producers now have to designate all income as farm or non-farm to determine eligibility.
“Recognizing farm income is more than just the income listed on a Schedule F, Congress provided some direction in the statute by defining certain sources as farm income and providing the Secretary with authority to define other sources of farm income,” he stated.
“We have been disappointed that USDA did not do more to obtain input from farmers and accountants concerning how best to designate sources of income as farm and non-farm. USDA did not ask for recommendations concerning how to define certain sources of income for the purpose of applying the new tests thus leaving farmers with the task of interpreting the appropriate designations of income. These designations are critically important because they determine eligibility for all program benefits.”
The regulations also now allow the Agriculture Secretary to require either a certification of average income or information and documentation regarding average income every year rather than every three years.
“We urge USDA to be consistent by changing the regulations to include the option to provide sufficient documentation as an alternative to third-party certifications and to clarify that such certification or documentation must occur only every three years,” Hardwick said.
Hardwick's stated that, "Farmers find themselves in the middle of an implementation process they don't fully understand. There are significant uncertainties about many critical aspects of these new rules, but program eligibility and livelihoods hinge on how these important questions are ultimately answered."
He added,” Given these uncertainties and the lack of clear direction, it would be patently unfair and unwarranted if oversight agencies mount a massive review of this process sometime in 2010 in an attempt to claim lack of enforcement by USDA or to claim widespread program abuses.”
“Recognizing farm income is more than just the income listed on a Schedule F, Congress provided some direction in the statute by defining certain sources as farm income and providing the Secretary with authority to define other sources of farm income,” he stated.
“We have been disappointed that USDA did not do more to obtain input from farmers and accountants concerning how best to designate sources of income as farm and non-farm. USDA did not ask for recommendations concerning how to define certain sources of income for the purpose of applying the new tests thus leaving farmers with the task of interpreting the appropriate designations of income. These designations are critically important because they determine eligibility for all program benefits.”
The regulations also now allow the Agriculture Secretary to require either a certification of average income or information and documentation regarding average income every year rather than every three years.
“We urge USDA to be consistent by changing the regulations to include the option to provide sufficient documentation as an alternative to third-party certifications and to clarify that such certification or documentation must occur only every three years,” Hardwick said.
Hardwick's stated that, "Farmers find themselves in the middle of an implementation process they don't fully understand. There are significant uncertainties about many critical aspects of these new rules, but program eligibility and livelihoods hinge on how these important questions are ultimately answered."
He added,” Given these uncertainties and the lack of clear direction, it would be patently unfair and unwarranted if oversight agencies mount a massive review of this process sometime in 2010 in an attempt to claim lack of enforcement by USDA or to claim widespread program abuses.”
National Cotton Council of America
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