A Spreadsheet to Help with Revenue Reporting for ECAP

We provide a spreadsheet to help with revenue reporting for ECAP

Photo by Jonas on Unsplash

This is the first time that USDA has used gross income instead of adjusted gross income (AGI) in determining whether a farmer qualifies for an increased payment limit. Many CPAs assume that FSA follows the IRS guidelines on what is and is not farm income. The reality is that they do not. There is a lot of income that is farm income for FSA purposes and not for income tax purposes.

For example, the processing, packing, storing and transportation of farm products is not farm income for income tax purposes, but is for FSA purposes, which it makes it much easier to be a “farmer”.

However, they continue to assert that equipment gains, the sale for farm inputs and providing farm services such as custom farming, harvesting, planting, spraying, etc. is only farm income if your other farm income is greater than 66.66% of total gross income including this income.