Schedule F (Form 1040): Profit or Loss From Farming (2025)

Updated November 7, 2026. Quick answer: Schedule F (Form 1040) is where a farm reports income and expenses. Cash-method filers complete Parts I and II, accrual-method filers complete Parts II and III and Part I line 9, and Part IV only supplies the six-digit activity code for line B. The net profit or loss on line 34 flows to Schedule 1 line 6 and to Schedule SE, so the schedule drives both income tax and self-employment tax.

What the schedule is for

The Instructions open the General Instructions with the rule: “Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040-SR, 1040-SS, 1040-NR, 1041, or 1065.” The form itself sits under the heading of the cash method: “Complete Parts I and II.” and for accrual: “Accrual method. Complete Parts II and III, and Part I, line 9.” This page is the map. Each line group below has its own page.

The parts and the line groups

Part	Lines	Title on the schedule	Who completes it	Page
Header	A to G	Principal activity, accounting method, EIN, material participation, Forms 1099	Not a part; the boxes above Part I	Lines A to G
I	1a to 9	Farm income, cash method	Cash filers complete Parts I and II	Lines 1 and 2
II	10 to 36	Farm expenses, cash and accrual	Every filer completes Part II	Rules before line 10
III	37 to 50	Farm income, accrual method	Accrual filers complete Parts II and III and Part I line 9	Part III
IV	Line B	Principal agricultural activity codes	Pick one six-digit code for line B	Part IV codes

Lines	Covers	Page
1 and 2	Sales of purchased livestock and of products you raised	Lines 1 and 2
3 to 5	Cooperative distributions, program payments, CCC loans	Lines 3 to 5
6 to 9	Crop insurance, custom hire, other income, gross income	Lines 6 to 9
10 to 15	Car and truck, chemicals, conservation, custom hire, depreciation, benefits	Lines 10 to 15
16 to 21b	Feed, fertilizer, freight, fuel, insurance, interest	Lines 16 to 21b
22 to 31	Labor, pensions, rent, repairs, supplies, taxes, utilities, veterinary	Lines 22 to 31
32a to 32f	Other farm expenses	Lines 32a to 32f
33 to 36	Total expenses, net profit or loss, at-risk box	Lines 33 to 36

The Schedule F line pages here sit beside the Schedule C line pages that cover the same decisions for a non-farm sole proprietor.

What does not belong on Schedule F

Part IV of the form carries a caution listing income that does not go on this schedule. Among the items: “Income from breeding, raising, or caring for dogs, cats, or other pet animals. Instead, see the Instructions for Schedule C (Form 1040).” Also: “Income from managing a farm for a fee or on a contract basis. Instead, see the Instructions for Schedule C (Form 1040).” And: “Sales of livestock held for draft, breeding, sport, or dairy purposes. Instead, see the Instructions for Form 4797.” The Form 4797 pages on this site start at Form 4797.

Other schedules and forms a farm return can need

The Instructions list the companion forms. Three matter on almost every farm return: “Schedule SE (Form 1040) to pay self-employment tax on income from your farming business.” “Form 4562 to claim depreciation (including the special allowance) on assets placed in service in 2025, to claim amortization that began in 2025, to make an election under section 179 to expense certain property, or to report information on vehicles and other listed property.” And for a landlord of a crop-share farm: “Form 4835 to report rental income based on crop or livestock shares produced by a tenant if you didn’t materially participate in the management or operation of a farm.” The Form 4835 page is Form 4835.

Income averaging is on the list too: “Schedule J (Form 1040) to figure your tax by averaging your farm income over the previous 3 years. Doing so may reduce your tax.” Loss limits are covered on Form 6198 (at-risk) and Form 8582 (passive activities); the casualty form is Form 4684.

Spouses who run a farm together

Spouses who co-own a farm have two choices: “you can file Form 1065 and be treated as a partnership, or you each can file Schedule F (Form 1040) as a qualified joint venture.” The election has conditions: “If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint return for the tax year, you can elect to be treated as a QJV instead of a partnership.” Once made, “Each of you must file a separate Schedule F (Form 1040).” For the entity-choice background see farm LLC or partnership basics.

The estimated tax exception for farmers

A farmer who underpaid estimated tax can avoid the penalty by filing early. The Instructions say the penalty does not apply if both of these hold: “Your gross farming or fishing income for 2024 or 2025 is at least two-thirds of your gross income.” and “You file your 2025 tax return and pay the tax due by March 2, 2026.” The form for the penalty is covered on Form 2210.

What changed for 2025

The Instructions list the new items. The business mileage figure: “The business standard mileage rate is 70 cents a mile for 2025.” The section 179 limit: “For tax years beginning in 2025, the maximum section 179 expense deduction is $2,500,000.” Bonus depreciation: “The 100% special depreciation allowance is restored for qualified property acquired after January 19, 2025.” A new farmland election: “created a new section 1062 that allows taxpayers to elect to pay the net income tax attributable to the gain on the sale or exchange of qualified farmland property to a qualified farmer through four equal annual installments beginning in the year of sale or exchange.” The section 179 limits are covered on Form 4562 lines 1 to 5.

Where line 34 goes

The result of the whole schedule is line 34. The Instructions say individuals “Enter your net profit or loss on line 34 and on Schedule 1 (Form 1040), line 6 and; Schedule SE (Form 1040), line 1a.” The Schedule 1 page is Schedule 1 lines 3 to 6 and the self-employment tax result lands on Schedule 2 line 4. A net profit is earned income for the credit covered on Schedule EIC.

Edition

This page reads Schedule F (Form 1040) for 2025 and the Instructions for Schedule F (Form 1040) (2025), the files irs.gov served on 2026-11-07. Line numbers belong to that edition, so check the label printed on the schedule in your own copy before you follow a line reference.

Common mistakes

Filing Schedule F for income the form excludes, such as pet breeding or farm management for a fee, which belong on Schedule C.
Reporting sales of draft, breeding, sport or dairy livestock on Schedule F instead of Form 4797.
Skipping Part I line 9 on an accrual return. Accrual filers complete Part II, Part III and Part I line 9, not the rest of Part I.
Forgetting that each spouse of a qualified joint venture files a separate Schedule F and a separate Schedule SE.
Using the 2025 line numbers on a later form. Check the label printed on your own copy.

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Sources

Schedule F (Form 1040), Profit or Loss From Farming (2025): https://www.irs.gov/pub/irs-pdf/f1040sf.pdf
Instructions for Schedule F (Form 1040) (2025): https://www.irs.gov/pub/irs-pdf/i1040sf.pdf

Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.

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