Generally, all income in cash or other property received in connection with any transaction related to the operation of the farm is includable in gross farm income. This includes, but is not limited to the following:

1. 1. 

   Cash or the fair market value of merchandise received by the farm operator for the sale of crops or livestock (other than livestock held for work, dairy or breeding purposes);

2. 2. 

   Income from occasional renting out of farm equipment;

3. 3. 

   Breeding fees received;

4. 4. 

   Farm work off the farm done either by the farmer (except as an employee) or his hired help;

5. 5. 

   Sale of wood, lumber or forest products;

6. 6. 

   Patronage dividends;

7. 7. 

   Prizes from fairs;

8. 8. 

   Proceeds from crop insurance received for damage to crops by hail, frost, drought, or other casualty;

9. 9. 

   Federal agricultural program payments; See RS 01803.210.

10. 10. 

    Storage fees received from the Commodity Credit Corporation;

11. 11. 

    Recovery of expenses deducted in previous years;

12. 12. 

    Rent received in crop shares by a materially participating landlord which has been reduced to money or its equivalent.

13. 13. 

    Dividends from cooperatives;

14. 14. 

    Wages in Kind; and

15. 15. 

    At the option of the farmer, crop loan from Commodity Credit Corp.

    • •

      If crop sold for more than loan, excess includable in NE in year of sale; or

    • •

      If crop sold for less than loan, generally there is no deductible loss.

For further information about the treatment of specific items, consult IRS Publication 225, Farmer's Tax Guide.