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Under the CRP, the Secretary of Agriculture is authorized to
enter into long-term contracts with owners or operators of
farmlands to convert highly erodible croplands to soil-conserving
uses. See 16 U.S.C. sec. 3831 (1994), added by the Food Security
Act of 1985, Pub. L. 99-198, sec. 1231, 99 Stat. 1509, amended by
the Food, Agriculture, Conservation, and Trade Act of 1990, Pub.
L. 101-624, sec. 1932(2), 104 Stat. 3577. Title 16 U.S.C.
section 3833 provides that in return for the contract entered
into by an owner or operator of land, the Secretary of
Agriculture will make "annual rental payments" in the amount
necessary to compensate for "the conversion of highly erodible
cropland normally devoted to the production of an agricultural
commodity on a farm or ranch to a less intensive use". 16 U.S.C.
sec. 3833(2)(A).
Petitioners argue that the CRP payments they received were
rent as the term is ordinarily defined. Petitioners point out
the CRP authorizing statute and the CRP contract use of the word
"rental". Petitioners contend that Congress intended for the
payments to be excluded from self-employment income because
Congress is presumed to have known that rental income is excluded
from self-employment income.
Respondent counters that the payments received were not
rentals from real estate. We agree with petitioners.
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