Producers look for guidance on how CFAP will be taxed

Producer continue looking to the Coronavirus Food Assistance Program for relief amid pandemic disruptions. However, many are left with questions on how their payments will be taxed.

RFD-TV’s John Jenkinson speaks with ag CPA Paul Neiffer on how a farmer’s CFAP payment is taxed and on the ruling for crops left in the field or that were plowed over.

“I think for most of our typical, let’s say wheat, corn, soybean, farmers, they’re not going to be able to defer payments because there is no damage,” he said. “Essentially the damage that they have is price damage; price damage can never be deferred, it’s only physical damage...Now again, this is more for the specialty crop, the fruits and the vegetables.”

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