How is a “family farm” different than an “investment farm”?
A family farm is considered the principal place of residence and the family claimed on Schedule F of the federal income tax return that it “materially participated in the farm’s operation.” In certain instances, however, even if the family farm is incorporated and the family files a corporate return instead of IRS Schedule F, the value and debt of the farm are not reported on the FAFSA. In such cases, the applicant must show evidence that family members own all shares of stock in the corporation and that those family members also reside on the farm.
