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1. Assist the applicant or recipient to make the best possible estimate of gross earnings and expenses. 2. Inform the applicant or recipient engaged in self-employment for which standards cannot be set that, for future eligibility determinations, he must keep and submit an account of income and expenses. Document the case record that the explanation was made. 3. When the recipient fails to provide the necessary information at the requested time after he has been given the opportunity to keep records of income and expenses, notify the Recipient that his eligibility on financial factors cannot be determined and his case will be closed. FARM INCOME Farm income, a type of self-employment, is obtained from the sale of crops. Money received from the sale of livestock shall be computed separately. Farm income is usually received annually and represents that net sum that the farmer will have to live on for the coming year. It is determined by deducting the costs of producing the crop from the proceeds of the crop. A farm operator is an individual who produces farm income on land which he owns, is buying, rents, or has an agreement with a landowner and receives a share of the crop.

MISSISSIPPI [INCOME: EARNED INCOME] Revised 11-01-11

The net self-employment income shall be added to any other earned income received by the family. The total earned income less appropriate work allowance and dependent care expenses shall be added to the family s earned income. Period for Determining Farm Income The period for which farm income is to be determined shall be that period beginning with the crop settlement time in the current year and ending with crop settlement time in the next year. This way the major portion of the net income from farming is in the individual s hands and will usually be his total income for the year to come. For applicants that apply at other than settlement time and expect to continue farming in about the same way as in the past, determine the usual farm income and prorate over the 12-month period. When discussion with the applicant shows that he cannot continue farming on the same basis as in the past, make a short term budget. Include in the budget whatever income is currently available for the months until the crop is settled. If any income is on hand from the previous crop year, consider this as a resource. For the individual who has discontinued farming, consider any cash on hand as a resource. Farm machinery and equipment essential to the self-employment of a household member engaged in farming shall continue to be excluded from resources for one year from the date the household member terminates his/her self-employment from farming.