; (3) by redesignating subsections (e) through (h) as subsections (d) through (g), respectively; (4) in subsection (d) (as so redesignated), in paragraph (3)(B)— (A) by striking clause (ii) and inserting the following: (ii) Reduction for persons and legal entities actively engaged in farming Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity of each person or legal entity that is determined to be actively engaged in farming under subsection (b) or (c) of section 1001A. ; and (B) in clause (iii), in the clause heading, by striking Reduction and inserting Reduction for persons and legal entities that exceeded the payment limitation ; (5) in subsection (e) (as so redesignated)— (A) by striking paragraph (4); (B) by redesignating paragraphs (5) through (8) as paragraphs (4) through (7), respectively; (C) in paragraph (4) (as so redesignated)— (i) in subparagraph (A), by striking Notwithstanding subsection (d), a Federal and inserting A Federal ; and (ii) in subparagraph (B), by striking (b), (c), or (d) and inserting (b) or (c) ; (D) in paragraph (5) (as so redesignated)— (i) in subparagraph (A), by striking Notwithstanding subsection (d), except as provided in subsection (g), and inserting Except as provided in subsection (f), ; and (ii) in subparagraph (B), by striking (b), (c), and (d) and inserting (b) and (c) ; and (E) by striking paragraph (9); and (6) in subsection (f) (as so redesignated), in paragraph (1), by striking (f)(6)(A) and inserting (e)(5)(A) . (b) Notification of interests; payments limited to active farmers Section 1001A of the Food Security Act of 1985 ( 7 U.S.C. 1308–1 ) is amended— (1) in subsection (b)(2)— (A) in subparagraph (A)(i), by striking subclause (II) and inserting the following: (II) personal labor and active personal management, which shall be in a duration equal to not less than the lesser of— (aa) 1,000 hours for the applicable crop year