Tax Information for Farmers and Ranchers (2024)

Table of Contents
On This Page Upcoming Webinar Programs That Create Taxable Payments Information for Recipients of Inflation Reduction Act Assistance Filing Your Taxes Underlined Header How to Find a Reputable Tax Preparer or Accountant Underlined Header How to Prepare for Your Meeting with a Tax Preparer Underlined Header How to get Copies of Your USDA Documents Tax Training Videos General Crop Disaster Payments Additional Tax Information Assistance for Distressed Borrowers News and Resources Find Your Local Service Center

Tax time is a busy time of year for business owners, and this includes farmers and ranchers. Navigating filing your taxes can be challenging, especially if you are new to running a farm business, participated in disaster programs for the first time, or are trying to forecast your farm’s tax bill. Receiving funds from USDA through activities such as a conservation program payment or a disaster program is considered farm income that includes a tax liability for farm businesses.

To better support America’s farmers and ranchers USDA has partnered with tax experts from across the country to connect producers to information and resources related to USDA program payments, asset protection, and the important relationships between federal income taxes and USDA farm programs.

On This Page

Programs That Create Taxable Payments

Information for Recipients of Inflation Reduction Act Assistance

Filing Your Taxes

Tax Training Videos

News and Resources

Upcoming Webinar

Event: Lessons Learned from the 2024 Income Tax Filing Season
Date: Thursday, May 16, 2024
Time: 1 p.m. ET
The 2024 March and April tax deadlines are in the rearview mirror. Join USDA staff and experts Guido van der Hoeven and JC Hobbes as they identify issues that can be strategized now for next year’s tax season.

Register for the webinar

Programs That Create Taxable Payments

USDA issues 1099 forms for:

  • Conservation programs administered by the Farm Service Agency and Natural Resource Conservation Service (such as the Conservation Reserve Program and Environmental Quality Incentives Program)
  • Crop disaster payments
  • Assistance for distressed borrowers, including through Section 22006 of the Inflation Reduction Act
  • Market Facilitation Program

Additionally, USDA issues 1098 forms for USDA farm loans, if:

  • The farmer is classified as an individual.
  • And if the farm ownership or operating loan is secured by real estate.

USDA technical assistance is free and creates no tax implications.

Information for Recipients of Inflation Reduction Act Assistance

Section 22006 of the Inflation Reduction Act (IRA) provided $3.1 billion for USDA to provide relief to distressed borrowers with certain Farm Service Agency (FSA) loans and to expedite assistance for those whose agricultural operations are at financial risk.

If you are a direct loan borrower who received financial assistance in 2023 from FSA under Section 22006, you will receive an IRS 1099-C form. Guaranteed borrowers who receive IRA assistance will receive a 1099-G form.

Depending upon your circ*mstances, the IRA payment reported on your 1099-C may be excluded from your income based on individual analysis filed with your tax return.

USDA cannot and does not provide tax advice but wants you to be aware of options that may help manage your tax liability. Please consult a tax professional with all tax-related questions regarding the FSA IRA assistance you received in 2023.

Filing Your Taxes

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How to Find a Reputable Tax Preparer or Accountant

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There are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and many others who don't have a professional credential. You expect your preparer to be skilled in tax preparation andto accurately file your income tax return.

The IRS has several useful resources to ensure that your taxes are filed by a knowledgeable tax professional. See the following resources or visit www.irs.gov:

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Before meeting with a tax consultant or accountant, here are some important things to do or consider:

  • Gather all 1099, 1098 and other tax forms issued by USDA.
  • If you have a Farm Loan, log into the self-service portal on farmers.gov to view your loan information, history, and payments.
  • Crop insurance proceeds must be included in your farm income.

Farmers can deduct certain conservation-related expenses. According to the IRS, you may deduct up to 25 percent of your gross farm income for conservation expenses.

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How to get Copies of Your USDA Documents

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If you haven’t received your USDA 1099 or 1098 forms, there are several helpful resources:

  • For NRCS-related 1099 forms, contact the 1099 Help Desk for reprints at 1-800-421-0323 (Option 1, then Option 4). You may also send an email to 1099helpdesk@usda.gov.
  • For FSA-related 1098 forms, call 866-729-9705.

Or visit your local USDA service center. To find yours visit: farmers.gov/service-locator.

This webpage and its resources are part of a broader effort by USDA to provide tax education and resources. USDA’s partners include the National Farm Income Tax Extension Committee and Extension Ag Tax Experts from around the country.

Tax Training Videos

USDA is working with farm tax experts throughout the country to compile resources.

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Crop Disaster Payments

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Additional Tax Information

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Assistance for Distressed Borrowers

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Find Your Local Service Center

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USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers.

Visit the Risk Management Agency website to find a regional or compliance officeor to find an insurance agent near you.

Tax Information for Farmers and Ranchers (2024)
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