[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1400.603]

[Page 338-339]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1400_PAYMENT LIMITATION AND PAYMENT ELIGIBILITY--Table of Contents
 
           Subpart G_Average Adjusted Gross Income Limitation
 
Sec. 1400.603  Commensurate reduction.

    (a) Any program payment or benefit subject to this subpart provided 
to an entity, general partnership or joint venture shall be reduced by 
an amount commensurate with the direct and indirect ownership interest 
in the entity, general partnership, or joint venture of each individual 
or entity determined to have an average adjusted gross income in excess 
of the limitation under the standards provided elsewhere in this

[[Page 339]]

subpart for the direct recipient of such payments.
    (b) Ownership interest in an entity shall be reviewed to the fifth 
level of ownership to determine whether a commensurate reduction is 
applicable and the extent of such reduction. If an ownership interest is 
not held by an individual in the fifth level of ownership in an entity, 
no payment or benefit shall be made with respect to such interest.

[68 FR 33346, June 4, 2003]