§ 1400.106 Payment limits.

(a) Direct or indirect payments made to a person or legal entity will not exceed the amounts specified in subpart A of this part and will be determined in accordance with § 1400.105. (b)(1) Payments made for program year 2025 and prior years to a joint operation cannot exceed, for each payment specified in subpart A of this part, the amount determined by multiplying the maximum payment amount specified in subpart A of this part by the number of persons and legal entities, other than joint operations, that comprise the ownership of the joint operation. (2) Payments made for program year 2026 and subsequent years to a qualified pass-through entity cannot exceed, for each payment specified in subpart A of this part, the amount determined by multiplying the maximum payment amount specified in subpart A of this part by the number of persons and legal entities, other than qualified pass-through entities, that comprise the ownership of the qualified pass-through entity. (c) Payments made to a legal entity will be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity by any person or legal entity that has otherwise reached the applicable maximum payment limitation. (d) The payment limitations described in items (1) and (2) of table 1 to § 1400.1(f) will be annually adjusted for inflation based on the CPI-U beginning with crop year 2025 according to the following: (1) On or about October 1 of each year, FSA reviews the CPI-U for the most recently available twelve-month period on the date of review; (2) FSA will average the CPI-U data and compare the average of the previous 12-month period to determine the percentage of inflation; (3) The result of paragraph (d)(2) of this section will be applied to the limitation specified in items (1) and (2) of table 1 to § 1400.1(f), as adjusted; and (4) The resulting adjusted limitation will be rounded to the nearest thousand.