SELF-EMPLOYMENT INCOME FROM FARMING
ISSUE DATE: 06/2017
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). |
Also see:
MFIP, DWP. MSA. GA. GRH:
No provisions.
SNAP:
FOR UNITS WITH FARMING INCOME RESULTING IN A PROFIT:
If the SNAP unit has a farm profit then the unit must select from 1 of the 2 self-employment methods outlined in 0017.15.33.03 (Self-Employment, Convert Inc. to Monthly Amt.).
FOR UNITS WITH FARMING INCOME RESULTING IN A LOSS:
If the SNAP unit has a farm loss, follow the guidance outlined in the SNAP Farm Loss Policy Guide (PDF) to determine the self-employment income for ALL of the unit’s self-employment businesses.
● | Units which expect to receive less than $1,000 in annual gross income from farming cannot use the farm loss to offset other earned and unearned income, see SNAP Farm Loss Policy Guide (PDF). |
● | Units which expect to receive $1,000 or more annual gross income from farming and experience a farm loss can use the farm loss to offset other earned and unearned income. See the SNAP Farm Loss Policy Guide (PDF). |
SNAP units with a farm loss, CANNOT select from the self-employment methods outlined in 0017.15.33.03 (Self-Employment, Convert Inc. to Monthly Amt.).
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PREVIOUS REVISIONS
| Date | Notes |
|---|---|
| 12/2016 | updates cross-reference to 0010.18.09 (Verifying Self-Employment Income) due to section title change. No policy was changed. |
| 03/2016 | in SNAP adds information about when a unit may use Farm Loss Offset. |
| 01/2016 | deletes previous Self-Employment policy and adds Simplified Self-Employment policy throughout. This change was EFFECTIVE 02/01/15. |
| 06/2015 | in general provisions adds 2 new paragraphs about the Simplified Self-Employment Policy Guide (Effective 02/01/15) and prior Self-Employment policy. |
| 12/2014 | Removed WB. This program was suspended 12/1/14. |
| 11/2012 | update Food Support and FS to Supplemental Nutrition Assistance Program (SNAP) and FSET to SNAP E&T throughout. No policy was changed. |
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