What is the AGI limitation?
FSA has a page on adjusted gross income describing an income limitation that applies to certain programs. In general, if your average AGI is above the limit set for a program, you are not eligible for payments under it. Different programs and different income sources can be treated differently.
The threshold and the years used to compute it are set by law and FSA rules. Check the FSA page for current figures. This guide does not state them.
Consider the data trail. FSA may use IRS information, with your consent, to verify income, so the numbers you certify should match your tax returns. Differences can cause delays or additional review.
How is average AGI figured?
The test uses an average over a set of tax years instead of a single year, which smooths out unusual swings. FSA documents describe which years apply for each program year, and the certification and verification process.
You will usually be asked to certify that your income is within the limit, and FSA may verify with the IRS, with your permission.
If you file amended returns or your income changes after you certify, ask FSA how that affects eligibility. It is better to ask than to assume.
What counts as farm income in this test?
Some programs treat the share of income from farming, ranching and forestry differently from other income. FSA has a frequently asked questions document about which kinds of income count as farm income and which do not.
Because the classification can be technical, a CPA who knows your return can help you understand how it applies to you. We do not give tax advice.
- Total AGI versus farm-source income
- Income reported by entity members
- Years used in the average
- Programs the test applies to
What forms and consent will I be asked for?
Applicants usually complete a certification and consent form that allows FSA to verify with IRS. The form asks for your tax identification and signature, and in the case of entities, may require information on members. FSA and the form instructions explain what to submit and when.
If you do not provide the certification by the deadline, payments may be withheld or you may be ineligible for that year. Keep a copy. Keep in mind that a rule can apply to your entity and to each person in it. If members file separate tax returns, each may need to certify, and a missing form from one person can hold up everyone. Collect the paperwork early and confirm with FSA that all of it has been received.
What happens if I am over the limit?
You may not be eligible for payments under the programs that apply the test, but other programs may not use it. Ask FSA which programs are affected before you assume a result.
Do not try to restructure income or ownership only to avoid the limit without professional advice. Rules on attribution and substance can cause problems.
Remember that FSA's pages and fact sheets are updated from time to time, so check the date on any document you use. A fact sheet from a few years ago may describe a past rule, and the website is the better source for what is current.
How do I double check before I sign up?
Read the FSA AGI page, ask your county office how it applies to your program, and talk to your CPA about your recent returns. If your income changes a lot from year to year, ask about timing.
Beware of anyone who claims to know a trick for getting around payment rules. Mistakes in certification can lead to repayment, so be accurate.
If you operate through an entity, ask how the limit is applied to the entity and to each member, since the answer may involve more than one set of tax returns.
Do other programs use income tests?
Some do and some do not. Conservation programs, disaster programs and commodity programs have all had their own income rules at different times, and the rules change with new legislation and rulemaking.
Ask for the program you are interested in whether an income test applies, what income measure it uses, and how it is verified. Do not assume that the rule for one program applies to another.
If you are close to a threshold, talk to your CPA about the timing of income and the definitions, and ask FSA for guidance in writing.
Key takeaways
- The AGI test sets an income ceiling for certain USDA programs.
- FSA uses an average over several tax years.
- Check the official page for the current threshold, not a number from memory.
- A CPA can explain how your return fits the definitions.
- Certify accurately because errors can lead to repayment.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.