### Question
How is the term qualified farm-related taxpayer defined?


### Answer
The term **qualified farm-related taxpayer** is defined in *26 U.S.C. § 464* as the following:

> any farm-related taxpayer if—


(i)(I) the aggregate prepaid farm supplies for the 3 taxable years preceding the taxable year are less than 50 percent of,


(II) the aggregate deductible farming expenses (other than prepaid farm supplies) for such 3 taxable years, or


(ii) the taxpayer has excess prepaid farm supplies for the taxable year by reason of any change in business operation directly attributable to extraordinary circumstances

#### Citation:
  - *26 U.S.C. § 464*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

