Beginning and Limited Resource Farmers and Ranchers Fact Sheet

The 2002 Farm Bill changed some of the programs administered by the Natural Resources Conservation Service (NRCS) to better address the needs of producers beginning their agricultural operations and limited resource farmers and ranchers. NRCS is committed to making sure technical assistance and program activities reach beginning and limited resource producers in a way that enables them to maintain and develop economic viability in farm operations.

What is a beginning farmer or rancher?

A beginning farmer or rancher is an individual or entity who:

• has not operated a farm or ranch or
• has not operated a farm or ranch for more than 10 consecutive years.

The individual or members of the entity must also materially and substantially participate in the day-to-day labor and/or management of the farm or ranch.

What is a limited resource farmer or rancher?

A limited resource farmer or rancher is defined as a person with:

• gross farm sales not more than $116,800 in each of the previous two years and
• a total household income at or below the national poverty level for a family of four, or less than 50 percent of the county median household income in each of the previous two years.

How do I know if I am eligible?

Determining eligibility for a beginning or limited resource farmer or rancher is a self-certification process. Landowners indicate on the program application form whether or not they meet the criteria for either designation.

A website is available for you to determine if you qualify as a limited resource producer: the Limited Resource Self-Determination Tool. Based on your answers to four questions on the website, you will be approved or not approved according to the limited resource producer criteria. Each step of the process has very clear instructions, including how to determine your gross farm sales and total household income.

NRCS conservationists in your local USDA service center can provide access to this website or additional information, such as the national poverty level for a family of four and the county median household income.

The eligibility worksheet will help you determine if you qualify as a beginning or limited resource producer. While NRCS may provide information for the process, you ultimately determine your eligibility.

It is important to note that all individuals within an entity (i.e., partnership or corporation) must meet the criteria to qualify as either a beginning or limited resource producer. NRCS will check a percentage of all limited resource and beginning farmer or rancher designations each year.

Cost-share assistance

Beginning and limited resource producers are eligible to receive up to 90 percent cost-share assistance for conservation practices through the Environmental Quality Incentives Program (EQIP) and the Conservation Security Program (CSP).

For more information

The USDA Small, Limited Resource, and Beginning Farmer and Rancher website provides access to fact sheets, definitions, examples, and other tools and information.

Contact the Natural Resources Conservation Service office in your county for more information specific to your area. Find the office nearest you by using the USDA Service Center Locator. NRCS offices are also listed in the telephone book under U.S. Government, U.S. Department of Agriculture.

If you encounter any problems with the files provided on this page, please contact Webmaster at 406-587-6945.

Last Modified: 1/9/2007