Family Farm Law & Legal Definition

According to 7 CFR 761.2 [Title 7 – Agriculture; Subtitle B -- Regulations of The Department of Agriculture; Chapter VII -- Farm Service Agency, Department of Agriculture; Subchapter D -- Special Programs; Part 761 -- General Program Administration; Subpart A -- General Provisions], family farm is “a farm that: (1) Produces agricultural commodities for sale in sufficient quantities so that it is recognized as a farm rather than a rural residence; (2) Has both physical labor and management provided as follows: (i) The majority of day-to-day, operational decisions, and all strategic management decisions are made by: (A) The borrower and persons who are either related to the borrower by blood or marriage, or are a relative, for an individual borrower; or (B) The members responsible for operating the farm, in the case of an entity. (ii) A substantial amount of labor to operate the farm is provided by: (A) The borrower and persons who are either related to the borrower by blood or marriage, or are a relative, for an individual borrower; or (B) The members responsible for operating the farm, in the case of an entity. (3) May use full-time hired labor in amounts only to supplement family labor. (4) May use reasonable amounts of temporary labor for seasonal peak workload periods or intermittently for labor intensive activities.”