FSA Provides Update on Average Gross Income

FSA released yesterday new guidance for the more than 75% Farm Average Gross Income calculations

Photo by Frances Gunn on Unsplash

FSA yesterday released FSA notice PL-313.

This notice provides updated guidance for calculating average gross income for purposes of meeting the more than 75% farm average gross income requirements under the ECAP program to allow for an increased payment limit.

These guidelines will likely be incorporated into Handbook 6-PL soon.

Some of the key items from the update are as follows:

• Instead of relying on certain lines from tax forms, it provides guidance on what income is farm or not farm income and how to calculate gross income. For example, on Schedule F you would add back expenses to arrive at gross income.

• If you show a hedging loss on Schedule F, that will reduce gross income.