{"data":{"id":"us/7-cfr-1400.202","jurisdiction":"us","citation":"7 CFR 1400.202","heading":"Persons.","body":"(a) A person will be considered to be actively engaged in farming with respect to a farming operation if:\n(1) The person independently and separately makes a significant contribution to a farming operation of:\n(i) Capital, equipment, or land, or a combination of capital, equipment, or land and\n(ii) Active personal labor or active personal management, or a combination of active personal labor and active personal management;\n(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\n(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.\n(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.\n(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:\n(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, qualified pass-through entity, or other legal entity, or legal entity that has an interest in the farming operation; and\n(2) To meet the requirements of paragraphs (a)(2) and (a)(3) of this section, and if acquired as a loan made to, guaranteed, co-signed, or secured by the persons, qualified pass-through entities, or other legal entities, the loan must:\n(i) Bear the prevailing interest rate and\n(ii) Have a repayment schedule considered reasonable and customary for the area.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE","SUBCHAPTER A—GENERAL REGULATIONS AND POLICIES","PART 1400—PAYMENT LIMITATION AND PAYMENT ELIGIBILITY","Subpart C—Payment Eligibility"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"2021533e60661923af5bc690b90c924bcd966a7ab060271976490c0bb3242fac","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-1400.201","next":"us/7-cfr-1400.203"},"notice":"GroundRules: Original legal text. Not legal advice."}