Adjusted Gross Income (AGI) is a requirement for many USDA funding programs, but what does it mean and how do you calculate it? Your AGI is your total yearly gross cash income as calculated in the forms below. Your farm’s gross cash income is the sum of all receipts from the sale of crops, livestock, and farm-related goods and services, as well as any direct payments from the government.
The USDA will ask about your AGI in form CCC-941 which asks for an average AGI over three years excluding the most recent tax year. For example, if you were applying in 2021, you would average your AGI from 2019, 2018, and 2017. You would NOT include your 2020 AGI. To apply for USDA programs your AGI must be under $900,000.
Your AGI can be easily found in your past taxes.
Individuals
Form 1040, line 37
Corporations
Form 1120, line 30 + 19
Form 1120S, line 21
Estates and Trusts
Form 1041, line 23 + 19
LLC, LLP, LP
Form 1065, line 22 + 10
Tax Exempt and Charitable Organizations
Form 990-T, line 38 - income from a non-commercial activity
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