Crp question

[chipterp]

My parents are at the cap of the crp payments they can receive. My wife and I own a small percentage of a farm we would like to see about putting in. Does anyone have experience with legality of how to distribute crp payments to other family members and owners what the rules are. Just trying to figure out if it is a possibility to enroll.


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[Nrharris]

What about forming an LLC?

 

[chipterp]

What about forming an LLC?

I believe we split it up when we bought it and the farm ground is already in an llc . Had money coming from a 1031 that was in an llc already .

 

[Sligh1]

U can assign contracts to other operators or workers of the land. I’m not sure but I think u could possibly even assign CRP funds to anyone u wanted ??? But ya, dude that farms it, employees that help or fam members helping on farm- think it’s doable to get them payment when max reached.

 

[Hardwood11]

That’s a nice problem to have !

 

[IowaBowHunter1983]

Rent the CRP to someone (you). You then become the operator and collect the CRP payment.

This is also a way wealthy landowners that are over the income cap can pay contractors.

 

[Duckriver]

That is a complex question and has a lot of factors. How your fsa basic eligibility forms are completed, % ownership, etc. Knowledge is power and If you want to dig thru all the fsa written policy for crp....https://www.fsa.usda.gov/programs-and-services/laws-and-regulations/handbooks/index

 

[hans1]

The way I have done it when I have been involved was the farm was ”rented“.the tenant received the Crp and the total cash rent was adjusted to reflect it. In this case the tenant enrolled the CRP and then “owned” the contract. With family it would be fine.