By: USDA-FSA
The Socially disadvantaged, limited resource, beginning, and veteran farmer or rancher certification (form ccc-860) is to be used by FSA customers to certify that they or the entity or joint operation:
- are a member (or if applicable members) of a socially disadvantaged group
- qualify as limited resource FSA producer(s)
- are beginning farmer(s) or rancher(s)
- are veterans
If a legal entity requests to be considered a “socially disadvantaged,” “limited resource,” “beginning” or “veteran” farmer or rancher, the entity must meet the definition as provided. Farmer or rancher includes; “owners”, “operators” and “other producers”.
A. Socially Disadvantaged Farmer or Rancher:
A socially disadvantaged farmer or rancher is a farmer or rancher who is a member of a group whose members have been subject to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. Groups include: American Indians or Alaskan Natives, Asians or Asian Americans, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics, and women (for those selecting a group that includes gender). Note that if applicant only checks
“women” without also selecting the other category the selection does not make applicant socially disadvantaged for conservation programs.
For entities requesting to be considered socially disadvantaged, at least 50% of the interest must be held by socially disadvantaged individuals.
B. Limited Resource Farmer or Rancher:
A limited resource farmer or rancher is a farmer or rancher that meets the criteria for both of the following:
- A producer whose direct or indirect gross farm sales do not exceed the amount identified in the Limited Resource Farmer/Rancher Self-Determination Tool* in each of the 2 calendar years that precede the complete taxable year before the relevant program year, adjusted upwards in later years for any general inflation, and
Table 1: Direct and Indirect Gross Sales
| PROGRAM YEAR | CORRESPONDING YEARS |
| 2017 | 2014 AND 2015 |
| 2018 | 2015 AND 2016 |
| 2019 | 2016 AND 2017 |
| 2022 | 2017 AND 2018 |
- A producer whose total household income was at or below the national poverty level for a family of four in each of the same 2 previous years reference in paragraph (1) of this definition.
A limited resource farmer or rancher status can be determined using the web site available through the Limited Resource Farmer and Rancher Online Self-Determination Tool through Natural Resources Conservation Service at https://lrftool.sc.egov.usda.gov/.
For entities requesting to be considered limited resource farmer or rancher, all members must be a limited resource farmer or rancher.
C. Beginning Farmer or Rancher:
A beginning farmer or rancher is a person or legal entity for which both of the following are true for the farmer or rancher:
- Has not operated a farm or ranch for more than 10 years, and
- Materially and substantially participates in the operation.
For entities to be considered a beginning farmer or rancher, at least 50% of the interest must be beginning farmers or ranchers.
D. Veteran Farmer or Rancher:
A veteran farmer or rancher is a farmer or rancher who has served in the Armed Forces (as defined in section 101 (10) of title 38) and who:
- Has not operated a farm or ranch for more than 10 years total, or
- Has obtained status as a veteran (as so defined in 38 U.S.C. 101(2)) during the most recent 10-year period.
For entities requesting to be considered a veteran farmer or rancher, at least 50% of the interest must be held by veteran farmers or ranchers.
E. NAP Coverage Option:
The Noninsured Crop Disaster Assistance Program (NAP) provides financial assistance to producers of non-insurable crops when a low yield, loss of inventory, or prevented planting occurs due to natural disasters. Non-insurable crops are those not insured by the Federal Crop Insurance Corporation. Eligible crops for NAP are commercially grown for food or fiber (excluding livestock and their by-products), commodities, and industrial crops for which crop insurance, excluding pilot coverage, is not available.
Catastrophic coverage is equal to 50 percent of your expected yield and 55 percent of the expected price for the eligible crop (referred to as Basic 50/55). You are not required to pay a fee or a premium for this level of coverage. Additional coverage options and higher levels of coverage are available with a premium. To avail yourself to these options, you must timely file CCC-471 (NAP Application for Coverage) in any FSA County office.