12 2 STA T . 1 0 1 5PUBLIC LA W 110 – 2 34—M A Y 22 , 200 8‘ ‘ (N)anyother a c t iv ity re l ate d to f ar m in g, ranching, or fore s try, as determined b y the S ecretary . ‘‘( 2 ) INCOMED E RIV ED F ROM F A RMIN G , RANC H ING, OR FOR - E ST R Y . — In determining the average ad ju sted gross farm income ofa p erson or legal entity, in addition to the inclusions described in paragraph ( 1 ), the Secretary shall include any income reported on the Schedule F or other schedule used by the person or legal entity to report income from farming, ranching, or forestry operations to the Internal R evenue Service, to the e x tent such income is not already included under paragraph (1). ‘‘( 3 )S P ECIA L R U LE.—If not less than 6 6.66 percent of the average adjusted gross income of a person or legal entity is derived from farming, ranching, or forestry operations described in paragraphs (1) and (2), in determining the average adjusted gross farm income of the person or legal entity, the Secretary shall also include— ‘‘( A )thesaleofe q uipment to conduct farm, ranch, or forestry operations
and ‘‘( B ) the provision of production inputs and services to farmers, ranchers, foresters, and farm operations. ‘‘(d) E NFORCEMENT.— ‘‘(1) IN GENERAL.— T o comply w ith subsection (b), at least once every 3 years a person or legal entity shall provide to the Secretary— ‘‘(A) a certification by a certified public accountant or another third party that is acceptable to the Secretary that the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity does not exceed the applicable limitation specified in that subsection; or ‘‘(B) information and documentation regarding the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity through other procedures estab- lished by the Secretary. ‘‘(2) D ENIAL OF PROGRAM B ENEFITS.—If the Secretary deter- mines that a person or legal entity has failed to comply with this section, the Secretary shall deny the issuance of applicable payments and benefits specified in paragraphs (1)( C ) and (2)(B) of subsection (b) to the person or legal entity, under similar terms and conditions as described in section 1 0 01B. ‘‘(3) AUDIT.—The Secretary shall establish statistically valid procedures under which the Secretary shall conduct targeted audits of such persons or legal entities as the Secretary deter- mines are most li k ely to exceed the limitations under subsection (b). ‘‘(e) COMMENSURATE REDUCTION.—In the case of a payment or benefit described in paragraphs (1)(C) and (2)(B) of subsection (b) made in a crop, program, or fiscal year, as appropriate, to an entity, general partnership, or joint venture, the amount of the payment or benefit shall be reduced by an amount that is commensurate with the direct and indirect ownership interest in the entity, general partnership, or joint venture of each person who has an average adjusted gross income, average adjusted gross farm income, or average adjusted gross nonfarm income in excess of the applicable limitation specified in subsection (b). Procedu re s.C er tif ic a tio n . D ead l ine.
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