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The United States Department of Agriculture (USDA) has provided the
following clarifications regarding the treatment of farm income for food
stamps:
1. Shelter Portion of Farm: Where a farm mortgage does not separately
identify the business and home portions of the property, the local
district may use reasonable means of identifying the separate costs
through proration. Proration may be based on information from
sources such as the mortgage lender, real estate tax records,
Farmer's Home Administration documents, insurance premium notices,
or other available information. The prorated portion of the
mortgage principal, taxes and interest which are attributed to the
home are allowed as shelter costs. The portion of the interest and
taxes (but not mortgage principal payments) attributed to the
business portion of the property are allowed as costs of producing
income.
Similarly, utility expenses which are not separately metered for
the home and business portions of the farm may be prorated, based
on income tax records or other available information. The prorated
actual cost which is attributed to the business is allowed as a
cost of producing income. The remaining actual cost or the utility
standard, whichever is greater, is allowed as a shelter expense.
2. Exclusion of Farm Property: The following clarifications apply to
households which have ceased farm operations but have not sold
their farm property. Farm land which is contiguous with the
property on which a household's home is located is excluded as a
resource indefinitely. Non-contiguous property is excluded for one
year after the household ceases to be engaged in farm self-
employment. After that year, the non-contiguous property is
excluded as an inaccessible resource as long as the household is
making a good-faith effort to sell it at a reasonable price.
3. Definition of Farming Operations: In response to questions, the
USDA has confirmed that the production and sale of maple products,
Christmas trees and beeswax are also considered farming operations.
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