Limited Resource Farmer and Beginning Farmer Fact Sheet

The 2002 Farm Bill changed some of the programs administered by the Natural Resources Conservation Service (NRCS) to better address Limited Resource Farmers (LRF) and Beginning Farmers (BF). A recent USDA Small-Scale Farmer Initiative successfully provided additional opportunity to reach under-served and/or under-represented clients.

What is a Limited Resource Farmer?

 A Limited Resource Farmer (LRF) has the following characteristics:

1. A person with direct or indirect gross farm sales not more than $116,800 in each of the previous two years, and
2. Has a total household income at or below the national poverty level for a family of four, or less than 50 percent of county median household income (to be determined annually using Commerce Department Data), in each of the previous two years.

An entity or joint operation can be a Limited Resource Farmer (Producer) if all individual members qualify as a Limited Resource Producer. The payment schedule will be 40 percent more for a LRF in Tennessee for fiscal year 2008. The Limited Resource Farmer tool at the following website link can determine if the applicant qualifies as a LRF: http://www.lrftool.sc.egov.usda.gov/

Eligibility as a LRF is based on the answers to four questions. Each step of this process has very clear instructions, including how to determine gross farm sales and total household income.

What is a Beginning Farmer?

A Beginning Farmer meets the following criteria:

1. Has not operated a farm or ranch, or who has not operated a farm or ranch for more than 10 consecutive years. This requirement applies to all members of an entity, and
2. Will materially and substantially participate in the operation of the farm or ranch.

In the case of a contract with an individual, individually or with the immediate family, material and substantial participation requires that the individual provide substantial day-to-day labor and management of the farm or ranch, consistent with the practices in the county or State where the farm is located. In the case of a contract made with an entity, all members must materially and substantially participate in the operation of the farm or ranch. Material and substantial participation requires that the members provide some amount of the management, or labor and management necessary for day-to-day activities, such that if the members did not provide these inputs, operation of the farm or ranch would be seriously impaired. The payment schedule will be 25 percent more for a Beginning Farmer in Tennessee for fiscal year 2008.

For more information, contact the Natural Resources Conservation Service office in your county. NRCS offices are listed in the telephone book under U.S. Government, U.S Department of Agriculture.

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