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U.S. Department of Agriculture NRCS-CPA-41A Natural Resources Conservation Service 1212016 viii Limited Resource Farmer or Rancher — The term "Limited Resource Farmer or Rancher• meanseither: (1)(i) A person with direct or indirect gross farm sales not more than the current indexed value in each of the previous two fiscal years (adjusted for inflation using Prices Paid by Farmer Index as compiled by National Agricultural Statistical Service), and (ii) Has a total household income at or below the national poverty level for a family of four, or less than 50 percent of county median household income in each of the previous two years (to be determined annually using Commerce Department Data); or (2) A legal entity or joint operation if all individual members independently qualify under paragraph (1). A legal entity or joint operation can be a Limited Resource Farmer or Rancher only if all individual members independently qualify. A Self -Determination Tool is available to the public and may be completed on-line or printed and completed hardcopy at: http://www.irftool.sc.egov.usda.gov/ ix Beginning Fanner or Rancher— The term 'Beginning Farmer or Rancher" means an individual or legal entity who: (1) Has not operated a farm or ranch, or who has operated a farm or ranch for not more than 10 consecutive years and who will materially and substantially participate in the operation of the farm or ranch. This requirement applies to all members of a legal entity. (2) In the case of an individual, individually, or with the immediate family, material and substantial participation requires that the individual provide substantial day-to-day labor and management of the farm or ranch consistent with the practices in the county or State where the farm is located. (3) In the case of a legal entity or joint operation, all members must materially and substantially participate in the operation of the farm or ranch. Material and substantial participation requires that each of the members provide some amount of the management or labor and management necessary for day-to-day activities, such that if each of the members did not provide these inputs, operation of the farm or ranch would be seriously impaired. x Socially Disadvantaged Farmer or Rancher — The term "Socially Disadvantaged'an individual who is a member of a group whose members have been subjected to racial or ethnic prejudices without regard to its members' individual qualities. For an entity, at least 50 percent ownership in the business entity must be held by socially disadvantaged individuals.A socially disadvantaged group is a group whose members have been subject to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of the following: • American Indians or Alaskan Natives • Asians • Blacks or African Americans • Native Hawaiians or other Pacific Islanders • Hispanics. Note: Gender alone is not a covered group for the purposes of NRCS conservation programs. The term entities reflect a broad interpretation to include partnerships, couples, legal entities, etc. A Veteran Farmer or Rancher— The term "Veteran Farmer or Rancher" means a farmer or rancher who: • Served in the active military, naval, or air service, and • Who was discharged or released from the service under conditions other than dishonorable, and • Who has not operated a farm or ranch; or has operated a farm or ranch for not more than 10 consecutive years. A legal entity or joint operation can be a Veteran Farmer or Rancher only if all individual members independently qualify.