What is federal gross income from farming?

Federal gross income from farming is the amount of income you received from your participation in the production of crops, fruits, fish, livestock (used for draft, breeding, or dairy purposes), or other agricultural products. This includes income from the operation of a stock, dairy, poultry, fruit, or truck farm, plantation, ranch, nursery, range, or orchard regardless of whether the operation is organized as a sole proprietorship, a partnership, an S corporation, or a trust. Federal gross income from farming also includes a share of crops produced in exchange for the use of the land.

Federal gross income from farming does not include payments from the sale of farm land and farm equipment, nor does it include income received by a custom grain harvester who performs grain harvesting and hauling services on farms he or she does not own, rent, or lease. It also does not include the wages of a farm employee or cash rent.

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