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Title 7 Part 1400 → Subpart F → §1400.503

Title 7 → Subtitle B → Chapter XIV → Subchapter A → Part 1400 → Subpart F → §1400.503

Electronic Code of Federal Regulations e-CFR

Title 7 Part 1400 → Subpart F → §1400.503

e-CFR data is current as of January 23, 2020

Title 7Subtitle BChapter XIVSubchapter APart 1400Subpart F → §1400.503


Title 7: Agriculture
PART 1400—PAYMENT LIMITATION AND PAYMENT ELIGIBILITY
Subpart F—Average Adjusted Gross Income Limitation


§1400.503   Commensurate reduction.

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

(b) Ownership interest in a legal entity will be reviewed to the fourth level of ownership, as specified in §1400.105, to determine whether a commensurate reduction is applicable and the extent of such reduction. If an ownership interest is not held by a person in the fourth level of ownership in a legal entity, no payment or benefit will be made with respect to such interest.