Persons.

CFR · 2024-01-01 · US · Title 7

(a) A person will be considered to be actively engaged in farming with respect to a farming operation if: (1) The person independently and separately makes a significant contribution to a farming operation of: (i) Capital, equipment, or land, or a combination of capital, equipment, or land and (ii) Active personal labor or active personal management, or a combination of active personal labor and active personal management; (2) Has a share of the profits or losses from the farming operation commensurate with the person's or legal entity's contributions to the operation; and (3) Makes contributions to the farming operation that are at risk for a loss, with the level of risk being commensurate with the person's or legal entity's claimed share of the farming operation. (b) If one spouse, or an estate of a deceased spouse, is determined to be actively engaged in farming as specified in paragraph (a) of this section, the other spouse is considered to have made a significant contribution, as specified in paragraph (a)(1)(ii) of this section, only to the same farming operation. (c) If a farming operation is conducted by a person, and the capital, land, or equipment is contributed by the person, the capital, land, or equipment: (1) To meet the requirements of paragraph (a)(1)(i) of this section, must be contributed directly by the person and must not be acquired as a result of a loan made to, guaranteed, co-signed, or secured by any other person, joint operation, or legal entity that

official document · source cfr-2024 · id 7:§ 1400.202