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SNAP CERTIFICATION MANUAL – SECTION 5000 5600 Self-Employment Income 5670 Farm Loss Deduction

If there is no loss in the farm operation, the farm income and allowable costs will be combined with the income and allowable costs of the other business. If there is a loss, the income and allowable costs of the farm operation will not be combined with the income and costs from the other business. Instead the loss will be deducted as instructed in SNAP 5670. 5664.2 Partnerships SNAP Manual 01/01/00 When a household member is involved in a self-employment operation with one or more partners, the household’s share of the income from the business will be calculated by: 1. Determining the gross income for the business; 2. Excluding the allowable costs of doing business; and 3. Dividing the net income by the number of partners unless the profits of the partnership are prorated rather than divided equally. If the profits are prorated, the net income will be prorated in the same manner.

5670 Farm Loss Deduction SNAP Manual 06/01/01 A farming operation is a business enterprise engaged in the production of agricultural products. Farming operations may involve cotton, soy beans, rice, other grains, stock, dairy, poultry, fish, fruit, beeswax, vegetables, ranching, tree farms, and nurseries among others. Losses incurred in farming operations are deductible from any other household income if: • The farmer’s cost of producing the farm income exceeded the gross income from the farming operation; and • The farmer received or expects to receive annual gross proceeds of $1,000 or morefrom the farming operation. Only allowable costs of producing self-employment income will be excluded to determine if a loss was incurred by a farm operation. When a farm operation shows a loss, the county office worker will: 1. Determine the monthly amount of the loss by excluding the allowable costs of producing the income. If the costs of producing the income exceed the income, divide the remaining costs of producing the income by 12 or by the number of months in the selected period. The resulting figure is the monthly farm loss.