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Farmers to receive payment statements

By WILLIAM J. HARMON

Executive Director

Marion County FSA

Producers soon should receive in the mail the reports of FSA/CCC payments issued to them during the 2005 calendar year. These reports, recorded by individual or entity identification number on form CCC-1099G, inform persons who earned federal farm program or Commodity Credit Corp. (CCC) based benefit payments of the specific amounts reportable to the Internal Revenue Service (IRS) as taxable income.

Types of payments considered taxable income are annual payments from Direct and Counter-cyclical Program contracts, Conservation Reserve Program (CRP), Loan Deficiency Payment (LDP) program, and Milk Income Loss Contract (MILC), and considered marketing gains from commodity loans.

Producers should attempt to balance amounts listed on the 1099G reports with their own personal accounting records. But, only in cases where significant differences occur, should county FSA offices be contacted to assist producers in reconciling problems. Producers always should consult their tax accountant, advisor, or the IRS when they are in need of legal tax advisement or information.

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