Joint operations.

CFR · 2024-01-01 · US · Title 7

(a) A member of a joint operation will be considered to be actively engaged in farming with respect to a farming operation if the member: (1) Makes a significant contribution 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, and that are: (A) Performed on a regular basis, (B) Identifiable and documentable, and (C) Separate and distinct from the contributions of any other member of the farming operation; (2) Has a share of the profits or losses from the farming operation commensurate with the member's contributions to the operation; and (3) Makes contributions to the farming operation that are at risk for a (b) For a farming operation conducted by a joint operation in which the capital, land, or equipment is contributed by the joint operation, the capital, land, or equipment: (1) To meet the requirements of paragraph (a)(1)(i) of this section, and if contributed directly by the joint operation, must not be acquired as a loan made to, guaranteed, co-signed, or secured by any person, legal entity, or other joint operation that has an interest in the farming operation; and (2) To meet the requirements of paragraphs (a)(2) and (3) of this section, and if acquired as a result of a loan made to, guaranteed, co-signed, or secured by the persons, legal entities, or joint operations with an interest in the operation, t

official document · source cfr-2024 · id 7:§ 1400.203