Most business property is entered on the Personal Property (FMW2) screen, but land and buildings are entered on the Real Property (FMW4) screen. FAMIS excludes the property based on policy as listed below.
- Assets that are essential to self-employment are excluded, regardless of whether the individual is making a profit. This includes:
- farm land, supplies, and work related equipment, such as the machinery of a farmer;
- property essential to the employment of a tradesman; or
- buildings, equipment, machinery, vehicles, and land used by self-employed persons for a self-employment enterprise.
Livestock is excluded as a resource if it is used in the farm operation, kept as a household pet, or used for food.
Work-related vehicles, equipment, tools, etc. from resources for any person laid off from work or experiencing a non-work cycle are excluded. This includes strikers.
NOTE: The buildings, equipment, machinery, and land of a farmer become a resource one year from the date the farmer terminates his/her self-employment from farming and has no intent to return to farming. Determine when a farmer ceases to be self-employed on a case-by-case basis.
To exclude these resources, enter the appropriate type code on the Personal Property (FMW2) screen or Real Property (FMW4) screen. Enter the usage code IP – income producing consistent with FMV or 50% of the time.
- Marketable assets are defined as assets that may reasonably be expected to be realized in cash or sold or consumed in the near future through normal business operations. For food stamp purposes, marketable assets include livestock, crops, merchandise, produce, and timber. Count these as income at the time of sale.
Do not consider grain held in storage a resource unless it is to be held in storage for more than 12 months.
If the EU states that the grain is not expected to remain in storage for more than 12 months, do not consider the grain a resource. The EU may not be able to give information on how long it is expected to remain in storage. If the EU is unsure of storage time, do not consider the grain a resource until 12 months have elapsed since the grain was stored.
EXAMPLE: Farmer Joe Green stated he is holding half of his crop off the market to obtain a better price. He is holding the other half to feed his animals. That half of his crop held to drive the market price up is an excluded resource for 12 months. If the grain is stored for more than 12 months, it is a resource. The other half is excluded as it is being held to feed the animals.