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Unusual income to complicate tax filings

taxes

A range of government farm support programs and legal set­­tlements, including the Market Facilitation Program (MFP), Coronavirus Food Assistance Pro­­gram (CFAP1 and CFAP2), Pay­­check Protection Program (PPP), Syngenta payments, ARC/PLC payments and crop in­surance, pumped close to $40 billion into the U.S. farm economy in 2020. In February 2020, the U.S. Department of Ag­­riculture was predicting a re­duction in U.S. farm income, but now is predicting growth in farm income, up to $115 billion.

Unexpected consequences

This increase in government income could cause some unexpected tax consequences for some farmers this year. Even though crop and livestock prices were low for much of the year, they have now improved, and coupled with government payments, farm income is looking better than expected. 

If you happen to be in the group that is having a good year...



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