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Instructions for Schedule F (Form 1040)

Line F(p3)

If you made any payments in 2017 that would require you to file any Forms 1099, check the Yes box. Otherwise, check the No box. See the 2017 General Instructions for Certain Information Returns if you are unsure whether you are required to file any Forms 1099. Also see the separate specific instructions for each Form 1099.
Generally, you must file Form 1099-MISC if you paid at least $600 in rents, services, prizes, medical and health care payments, and other income payments. The Guide to Information Returns in the 2017 General Instructions for Certain Information Returns has more information, including the due dates for the various information returns.

Part I. Farm Income—Cash Method(p3)

In Part I, show income received for items listed on lines 1 through 8. In most cases, include both the cash actually or constructively received and the fair market value of goods or other property received for these items. Income is constructively received when it is credited to your account or set aside for you to use.
If you ran the farm yourself and received rents based on crop shares or farm production, report these rents as income on line 2.
Sales of livestock because of weather-related conditions.(p3)
If you sold livestock because of drought, flood, or other weather-related conditions, you can elect to report the income from the sale in the year after the year of sale if all of the following apply.
Chapter 11 bankruptcy.(p3)
If you were a debtor in a chapter 11 bankruptcy case during 2017, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040 (under Income) and the Instructions for Schedule SE (Form 1040).
Forms 1099 or CCC-1099-G.(p3)
If you received Forms 1099 or CCC-1099-G showing amounts paid to you, first determine if the amounts are to be included with farm income. Then use the following chart to determine where to report the income on Schedule F (Form 1040). Include the Form 1099 or CCC-1099-G amounts in the total amount reported on that line.
Form Where to
1099-PATRLine 3a 
1099-ALine 5b 
1099-MISC for crop insurance Line 6a 
1099-G or CCC-1099-G   
  • for disaster payments
Line 6a 
  • for other agricultural program payments
Line 4a 
You may receive Form 1099-MISC for other types of income. In this case, report it on whichever line best describes the income. For example, if you receive a Form 1099-MISC for custom farming work, include this amount on line 7.

Lines 3a and 3b(p4)

If you received distributions from a cooperative in 2017, you should receive a Form 1099-PATR. On line 3a, show your total distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations, and redemptions of nonqualified written notices of allocation and per-unit retain certificates.
Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates.
Don't include as income on line 3b patronage dividends from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 3a only. Because you don't report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items.

Lines 4a and 4b(p4)

Enter on line 4a the total of the following amounts.
These amounts are government payments you received and are usually reported to you on Form 1099-G. You also may receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.
On line 4b, report only the taxable amount. For example, don't report the market gain shown on Form CCC-1099-G on line 4b if you elected to report CCC loan proceeds as income in the year received (see Lines 5a Through 5c next). No gain results from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated as repurchasing the commodity for the amount of the loan repayment. However, if you didn't report the CCC loan proceeds under the election, you must report the market gain on line 4b.

Lines 5a Through 5c(p4)

Commodity Credit Corporation (CCC) loans.(p4)
In most cases, you don't report CCC loan proceeds as income. However, if you pledge part or all of your production to secure a CCC loan, you can elect to report the loan proceeds as income in the year you receive them. If you make this election (or made the election in a prior year), report loan proceeds you received in 2017 on line 5a. Attach a statement to your return showing the details of the loan(s). See chapter 3 of Pub. 225.
Forfeited CCC loans.(p4)
Include the full amount forfeited on line 5b, even if you reported the loan proceeds as income. This amount may be reported to you on Form 1099-A.
If you didn't elect to report the loan proceeds as income, also include the forfeited amount on line 5c.
If you did elect to report the loan proceeds as income, you generally will not have an entry on line 5c. But if the amount forfeited is different from your basis in the commodity, you may have an entry on line 5c.
See chapter 3 of Pub. 225 for details on the tax consequences of electing to report CCC loan proceeds as income or forfeiting CCC loans.
If you received a CCC loan in 2017, your farm losses may be reduced. See Excess farm loss rules in Line 35, later, for more details.

Lines 6a Through 6d(p4)

In most cases, you must report crop insurance proceeds in the year you receive them. Federal crop disaster payments are treated as crop insurance proceeds. However, if 2017 was the year of damage, you can elect to include certain proceeds in income for 2018. To make this election, check the box on line 6c and attach a statement to your return. See chapter 3 of Pub. 225 for a description of the proceeds for which an election can be made and for what you must include in your statement.
If you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds (including federal crop disaster payments) from a single trade or business.
Enter on line 6a the total crop insurance proceeds you received in 2017, even if you elect to include them in income for 2018.
Enter on line 6b the taxable amount of the proceeds you received in 2017. Don't include proceeds you elect to include in income for 2018.
Enter on line 6d the amount, if any, of crop insurance proceeds you received in 2016 and elected to include in income for 2017.

Line 8(p4)

Enter on line 8 income not otherwise reportable on lines 1 through 7. This includes the following types of income.
For property acquired and hedging positions established, you must clearly identify on your books and records both the hedging transaction and the item(s) or aggregate risk being hedged.
Purchase or sales contracts aren't true hedges if they offset losses that already occurred. If you bought or sold commodity futures with the hope of making a profit due to favorable price changes, report the profit or loss on Form 6781 instead of this line.