[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: 7CFR1400.501]

[Page 337-338]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1400_PAYMENT LIMITATION AND PAYMENT ELIGIBILITY--Table of Contents
 
                        Subpart F_Foreign Persons
 
Sec.  1400.501  Eligibility.


    (a) Any person who is not a citizen of the United States or a lawful 
alien shall be ineligible to receive payments, loans and benefits, with 
respect to any commodity produced, or land set aside from production, on 
a farm that is owned or operated by such person unless such person is an 
individual who is providing land, capital, and a substantial amount of 
active personal labor on such farm.
    (b)(1) A corporation or other entity shall be ineligible to receive 
payments, loan, and benefits if more than 10 percent of the beneficial 
ownership of the entity is held by persons who are not citizens of the 
United States or lawful aliens unless each foreign individual who is a 
stockholder or other type of member provides a substantial amount of 
active personal labor in the production of crops on a farm owned or 
operated by such an entity. However, upon the written request of the 
entity, the Deputy Administrator may make payments in an amount 
determined by the Deputy Administrator to be representative of the 
percentage interest of the entity that is owned by citizens of the 
United States and lawful aliens or foreign stockholders or other type of 
member who provide a significant contribution of active personal labor 
in the production of crops on a farm owned or operated by such entity.
    (2) In determining whether more than 10 percent of the beneficial 
ownership of an entity is held by persons who are not citizens of the 
United States or by lawful aliens, the beneficial ownership interest 
shall be the higher of the amount of such interest on:
    (i) The date the applicable program contract or agreement is 
executed by the entity; or
    (ii) Any other date prior to the final harvest date that is 
determined and announced by the Deputy Administrator to be normal in the 
area for the applicable program crop.

[[Page 338]]

    (3) A corporation or other entity shall inform the county committee 
of any increase in such ownership that occurs after the applicable 
program contract or agreement is executed.
    (4) In the event of an increase in such ownership after a payment, 
loan, or benefit has been made, the entity shall refund such payment, 
loan, or benefit.
    (5) Where there is only one class of stock or other similar unit of 
ownership, an individual's or entity's percentage share of the limited 
partnership, corporation or other similar entity shall be based upon the 
outstanding shares of stock or other similar unit of ownership held by 
the individual or entity and compared to the total outstanding shares of 
stock or other similar unit of ownership. If the limited partnership, 
corporation or other similar entity has more than one class of stock or 
other unit of ownership, the percentage share of the limited 
partnership, corporation or other similar entity owned by an individual 
or entity shall be determined by the Deputy Administrator on the basis 
of market quotations. If market quotations are lacking or are too scarce 
to be recognized, such percentage share shall be determined by the 
Deputy Administrator on the basis of all relevant factors affecting the 
fair market value of such stock or other unit of ownership, including 
the various rights and privileges that are attributed to each such 
class.
    (c) A citizen of the United States, lawful alien, or entity that is 
not subject to this part who is in lawful possession, through a lease or 
otherwise, of a farm owned by an individual or entity who is subject to 
this part may receive a payment, loan, and benefit without regard to 
this part.