1224.What are the criteria for Test I: Financial Contribution, Periodic Inspection, and Consultation?

You meet the conditions for Test I if you have an arrangement for participation and do any three of the following:

  1. Advance, pay, or stand good for a significant part of the cost of production;

  2. Furnish a significant part of the tools, equipment, and livestock used in producing the commodities;

  3. Make periodic inspections of the production activities; or

  4. Advise and consult with the tenant periodically.