More Questions on ERP Phase 2
We continue to get questions regarding Phase 2 of ERP. This post summarizes the new ones we have received.
Many farmers will elect to defer crop insurance from the year of receipt to the following year. Does ERP Phase 2 require the farmer to include that in Allowable Gross Revenue (AGR) based on the year the crop insurance was received or the year that the farmer reported the income?
Livestock producers elected to defer livestock sales due to drought into future years for income tax purposes. Similar to crop insurance, is this based on the year of sale or the year of reporting the income.
Supply cooperatives issue cooperative dividends based on the amount of supplies purchased during the year. We assume that this is not included as part of AGR, but need clarification from FSA.
Hopefully, FSA will provide guidance on these and other questions before we get too far down the road with Phase 2.
Thanks for reading Farm CPA Report! Subscribe for free to receive new posts and support my work.