Information regarding the 2/1/15 Self-Employment policy may be found in the Simplified Self-Employment Policy Guide (PDF) Effective 02/01/15.

Information regarding the Self-Employment policy prior to 2/1/15 is below.


Farmers are self-employed. They may work full-time, part-time, or as hobby farmers.

Common types of farm income include:

●	Proceeds from sale of crops, livestock, or products.
●	Production from livestock.
●	Income from home-produced food.
●	Soil conservation payments and other subsidies.
●	Proceeds from machine rental, including wages to the farmer/operator.
●	Capital gains. See 0017.15.54 (Capital Gains as Income).

Deduct from farm income all allowable expenses necessary to produce the income. Separate farm and shelter expenses using farm records and information from the mortgage lender, tax assessor, or Farmer's Home Administration. When it is not possible to separate farm and shelter expenses, determine the ratio of farm property to home property and multiply the expense by the ratio.


Also see:

0010.18.09	Verifying Self-Employment Income/Expenses.
0017.15.33.03	Self-Employment, Convert Inc. to Monthly Amt.
0017.15.33.06	Self-Employment Common Business Expenses.
0017.15.33.15	Self-Employment Expenses Not Allowed.
0022	Budgeting and Benefit Determination.

MFIP, DWP:
Follow general provisions.


SNAP:
Average farm income and expenses over a 12-month period. Use the unit's most current tax return as a guide. If the tax return is not available or does not reflect true circumstances, use the client's farm records.

If the farm income has greatly increased or decreased from the income shown on the tax return or farm records, anticipate the earnings and calculate a new average. Use the average for the remainder of the certification period.


MSA, GA, GRH:
Average farm income and expenses over a 12-month period. Use the unit's most current tax return as a guide. If the tax return is not available or does not reflect true circumstances, use the client's farm records.

If the farm income has greatly increased or decreased from the income shown on the tax return or farm records, estimate the earnings. Calculate a new average each month until there is a 12-month average. Use the average figure for 12 months or until the client files a new tax return form, whichever is shorter.