[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1400.401]

[Page 337]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1400_PAYMENT LIMITATION AND PAYMENT ELIGIBILITY--Table of Contents
 
                       Subpart E_Cash Rent Tenants
 
Sec.  1400.401  Eligibility.


    (a) Any tenant that is actively engaged in farming in accordance 
with the provisions of subpart C and conducts a farming operation in 
which the tenant rents the land for cash, for a crop share guaranteed as 
to the amount of the commodity, or by any arrangement in which the 
tenant does not compensate the landlord by cash or a crop share, and 
receives benefits, with respect to such land under a program specified 
in Sec.  1400.1(a) shall be ineligible to receive any payment with 
respect to such cash-rented land unless the tenant makes a significant 
contribution to the farming operation of:
    (1) Active personal labor; or
    (2) Active personal management and equipment. If such equipment is 
leased by the tenant from:
    (i) The landlord, the lease must reflect the fair market value of 
the equipment leased; and
    (ii) The same individual or entity that is providing hired labor to 
the farming operation, the contracts for the lease of the equipment and 
for the hired labor must be two separate contracts that reflect the fair 
market value of the leased equipment and the hired labor and the tenant 
must exercise complete control over the use of a significant amount of 
the equipment during the current crop year.
    (b) [Reserved]