Farmers Tax Guide

The IRS Publication 225, Farmers Tax Guide provides useful information regarding Government funded conservation programs such as CREP. The full publication is available on the web at http://www.irs.gov/pub/irs-pdf/p225.pdf. Two points are clear; CREP payments are considered income and CREP expenses are deductible.

The following sections in particular are applicable to CREP. (PDF)

• Page 16 - Agricultural Program Payments
  
• Page 24 -Deductible Expenses
  
• Page 32 - Soil and Water Conservation Expenses Plan Certification