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April 14, 2025
Question

Conservation Reserve Program - Expenses

  • April 14, 2025
  • 1 reply
  • 0 views

For our Farm Income, where or how do I enter the expenses for our CRP? 

 

Also, for previous questions about what to select as the Principal Agricultural Activity Code, we put 111900 "Other Crop Farming"... that seemed like the best option for the CRP. 

1 reply

PatriciaV
April 16, 2025

The expenses relating to your CRP income are reported as Conservation expenses under the Farm Expenses section. Note that if your conservation expenses exceed 25% of the gross income of the farm, the deduction is limited to 25%, and any excess can be carried forward. Be sure you've calculated your conservation expense deduction correctly and that your expenses are covered by an approved conservation plan.

 

If your CRP expenses are not covered by an approved plan, report them under whatever farm expense category seems appropriate.

 

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