Updated November 7, 2026. Quick answer: Lines 3a to 5c catch three kinds of farm receipts that are only sometimes taxable: patronage from a cooperative (Form 1099-PATR), government program payments (Form 1099-G or CCC-1099-G) and Commodity Credit Corporation loans. Each has a gross line (a) and a taxable line (b or c), and the CCC loan election decides whether the loan proceeds are income when received.
Which Form 1099 goes where
The Instructions give a short table for the forms a farmer receives: “use the following table to determine where to report the income on Schedule F (Form 1040).” The table:
| Form | Where to report |
|---|---|
| 1099-PATR | Line 3a |
| 1099-A | Line 5b |
| 1099-MISC for crop insurance | Line 6a |
| 1099-G or CCC-1099-G, disaster payments | Line 6a |
| 1099-G or CCC-1099-G, other agricultural program payments | Line 4a |
The 1099-PATR boxes are covered on Form 1099-PATR boxes and the agricultural payment boxes on Form 1099-G boxes 4 to 9.
Lines 3a and 3b: cooperative distributions
Line 3a is the gross figure: “On line 3a, show your total distributions from cooperatives.” The form arrives as “If you received distributions from a cooperative in 2025, you should receive a Form 1099-PATR.” Line 3b is the taxable part, and one exclusion is worth knowing: “Don’t include as income on line 3b patronage dividends from buying personal or family items, capital assets, or depreciable assets.”
Lines 4a and 4b: agricultural program payments
Line 4a: “Enter on line 4a the total of the government agricultural program payments that you received.” The list includes “Price loss coverage payments.” and “Agriculture risk coverage payments.” They are usually reported on Form 1099-G or Form CCC-1099-G. Line 4b takes only the taxable part: “On line 4b, report only the taxable amount.”
Lines 5a to 5c: CCC loans
The default treatment is not to count the loan: “In most cases, you don’t report CCC loan proceeds as income.” The election: “if you pledge part or all of your production to secure a CCC loan, you can elect to report the loan proceeds as income in the year you receive them.” If you make it, “Attach a statement to your return showing the details of the loan(s).” Forfeited loans go on line 5b: “Include the full amount forfeited on line 5b, even if you reported the loan proceeds as income.” The amount may arrive on Form 1099-A.
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
- Entering only the taxable cooperative amount on line 3a. Line 3a is the total of the distributions; line 3b is the taxable part.
- Reporting a CCC loan as income without having made the election, or failing to attach the statement when you did.
- Putting a Form 1099-G disaster payment on line 4a. The Instructions’ table sends disaster payments to line 6a.
- Treating a market gain shown on Form CCC-1099-G as taxable on line 4b when the loan proceeds were already reported as income.
Related: Schedule F overview, Form 1099-PATR boxes, and Form 1099-G boxes 4 to 9.
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- 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.