{"data":{"id":"us/7-cfr-1400.205","jurisdiction":"us","citation":"7 CFR 1400.205","heading":"Trusts.","body":"A trust will be considered to be actively engaged in farming with respect to a farming operation if:\n(a) The trust independently and separately makes a significant contribution to the farming operation of capital, equipment, or land, or a combination of capital, equipment, or land;\n(b) The income beneficiaries collectively make a significant contribution of active personal labor or active personal management, or a combination of active personal labor and active personal management to the farming operation. The combined interest of all the income beneficiaries providing active personal labor or active personal management, or a combination of active personal labor and active personal management, must be at least 50 percent;\n(c) The trust has a share of the profits or losses from the farming operation commensurate with the legal entity's contributions to the operation;\n(d) The trust makes contributions to the farming operation that are at risk for a loss, with the level of risk being commensurate with the legal entity's claimed share of the farming operation;\n(e) For a farming operation conducted by a trust in which the capital, land, or equipment is contributed by the trust, the capital, land, or equipment:\n(1) To meet the requirements of paragraph (a) of this section, must be contributed directly by the trust and must not be acquired as a loan made to, guaranteed, co-signed, or secured by any person, legal entity, or qualified pass-through entity that has an interest in the farming operation, as defined in this part; and\n(2) To meet the requirements of paragraphs (c) and (d) of this section and if land, capital or equipment is acquired as a result of a loan made to, guaranteed, co-signed, or secured by the persons, legal entities, or qualified pass-through entities as defined, the loan must:\n(i) Bear the prevailing interest rate; and\n(ii) Have a repayment schedule considered reasonable and customary for the area.\n(f) The trust has provided a tax identification number of the trust unless the trust is a revocable trust and the grantor is the sole income beneficiary; and\n(g) The trust has provided a copy of the trust agreement to the county committee unless the trust is a revocable trust.","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":"9100448c1b0a3ce38ca68beabd57437a3db9b04043d33a9ed0d767a6bc863143","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-1400.204","next":"us/7-cfr-1400.206"},"notice":"GroundRules: Original legal text. Not legal advice."}