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  February 17, 2010

It's one of those details that may have escaped you, but if it's not taken care of by June 2010, you could be required to refund your 2009 MILC and DELAP payments to the government.

The Farm Service Agency (FSA) is urging all dairy farmers to make sure they have signed and mailed their information consent forms (CCC-927’s and CCC-928’s) to the Internal Revenue Service (IRS). These forms give the IRS permission to let FSA know if a farm's income exceeds the limit prescribed by the 2008 Farm Bill for all FSA payments, including MILC and last December's DELAP payments. 

The limits set in the 2008 Farm Bill are $500,000 nonfarm average Adjusted Gross Income (AGI) for commodity and disaster programs; $750,000 farm average AGI for direct payments (like MILC and DELAP); and $1 million nonfarm average AGI for conservation programs.

The information between IRS and FSA would be exchanged electronically and would simply verify a farm's compliance with the AGI provisions. Producers who signed a CCC-926 certifying AGI compliance will need to now complete CCC-927 and/or CCC-928 and submit it to the IRS by June 15, 2010.  

Participants who choose not to submit a completed CCC-927, or CCC-928, as applicable, will be determined noncompliant with AGI limitations for 2009 and 2010 and will have to refund all 2009 payments, including MILC and DELAP. Copies of the CCC-927, CCC-928 forms are available at local FSA offices.


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