SEC. 1604. ADJUSTED GROSS INCOME LIMITATION

Entities or individuals with an adjusted gross income that exceeds $900,000 are now eligible to receive marketing loan gain or loan deficiency payments.

Qualified pass through entities are exempted from the AGI limit, meaning these entities, no matter how much income they make, are eligible to receive marketing loan gain or loan deficiency payments.

The Secretary of Agriculture can allow entities or persons with an AGI over $900,000 to receive subsidies for conservation programs “if the Secretary determines environmentally sensitive land of special significance would be protected as a result of such waiver.”

This is a significant erosion to the already miniscule attempts to rein in taxpayer subsidies. Agricultural businesses, however they decide to incorporate, maintain eligibility for commodity and conservation program subsidies if their average of their adjusted gross income, income after deductions, for the last three years does not exceed $900,000. With these changes, farms netting more than $1 million a year could stand to receive marketing loan gains and deficiency payments. This section also appears to make “pass through entities” exempt from any adjusted gross income test.