7 CFR 1400.503
§ 1400.503 Commensurate reduction.
United States · 7 CFR — Agriculture · Status: effective
Cite this
- Citation
- 7 CFR 1400.503, § 1400.503 Commensurate reduction, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/25367
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Full text
(a) Any program payment or benefit subject to this subpart provided to a legal entity or qualified pass-through entity will be reduced by an amount commensurate with the direct and indirect ownership interest in the legal entity or qualified pass-through entity 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 the 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 the reduction. If an ownership interest is not held by a person in the fourth level of ownership in a legal entity, including a qualified pass-through entity, no payment or benefit will be made with respect to the interest.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.