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TeachMeFinance.com - explain Three entity rule Three entity rule The term 'Three entity rule ' as it applies to the area of agriculture can be defined as ' Federal law currently sets an annual cap on the amount of direct payments that a person may receive from major farm programs. A provision in this law permits a person to receive payments up to the full cap on the first farm in which the person has a substantial beneficial interest, and up to half the full cap on each of two additional farms; hence the so-called 'three-entity rule.''. Previous 5 Terms: thoracoscope Thorium Threatened Threatened species Threatened species Next 5 Terms: Three-phase power thremmatology threpsology threptic Threshold About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.