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1. Base Period - Applications and Redeterminations

The base period is 12 months prior to the month of application or review, or number of months the a/b or financially responsible person has been a self- employed farmer.

a. If earnings have been fairly constant and change is not anticipated, estimate current annual income based upon the federal tax return filed for the most recent year or most recent year’s quarterly tax statements. If there are no tax records use business records for the previous 12 months to verify gross income. Subtract allowable operational expenses from gross income to determine the countable adjusted gross income.

b. If the a/b states there has not been a significant change, use gross-net ratio based upon prior year's earnings.

2. Base Period for Retroactive Medicaid

For farm income, always use monthly countable adjusted gross income computed from the base period (not actual income) when determining eligibility for retroactive Medicaid.

3. Consider all income received from the sale of farm products such as:

a. Crops,

b. Livestock such as beef, poultry, etc.,

c. Livestock products such as milk, eggs, etc.,

d. Proceeds from the Soil Bank,

e. Cash rent, or

f. Other sources of farm income such as insurance payments for damaged crops.

4. Base Period for Operational Expenses

a. Verify operational expenses for the previous calendar year if using federal tax return to determine income, or

b. When using prior year’s quarterly tax statements to verify earnings, use the same quarters when verifying operational expenses.