Updated November 7, 2026. Quick answer: Lines 6a to 6d report crop insurance and federal disaster payments, with an option to push damage-year proceeds into 2026. Line 7 is custom hire income, line 8 is everything else, and line 9 adds the right-column amounts into gross income (or takes line 50 if you use the accrual method).
Lines 6a to 6d: crop insurance and disaster payments
The default is current-year reporting: “In most cases, you must report crop insurance proceeds in the year you receive them. Federal crop disaster payments are treated as crop insurance proceeds.” The deferral: “if 2025 was the year of damage, you can elect to include certain proceeds in income for 2026.” It is all or nothing: “If you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds (including federal crop disaster payments) from a single trade or business.”
How the lines split: “Enter on line 6a the total crop insurance proceeds you received in 2025, even if you elect to include them in income for 2026.” Line 6b is the taxable part, “Don’t include proceeds you elect to include in income for 2026.” and line 6d is the amount from 2024 that you elected to move into 2025. The related 1099-MISC box is covered on Form 1099-MISC boxes 5, 9 and 11.
Line 7: custom hire income
Line 7 is income you earn working for others with your machinery. The Instructions give the example: “if you receive a Form 1099-MISC for custom farming work, include this amount on line 7.” The matching expense, when you pay someone to run their machine for you, is line 13, covered on lines 10 to 15.
Line 8: other income
Line 8 is the catch-all: “Enter on line 8 income not otherwise reportable on lines 1 through 7.” The list includes “Bartering income.” and “State gasoline or fuel tax refunds you received in 2025.” It also includes “Any income from breeding fees, or fees from renting teams, machinery, or land that isn’t reported on Schedule E (Form 1040) or Form 4835.” Canceled debt is on the list as well: “Income from cancellation of debt.” The form that reports it is covered on Form 1099-C.
Hedging gains and losses have a boundary: “Purchase or sales contracts aren’t true hedges if they offset losses that already occurred.” Speculative futures profit or loss goes on Form 6781 instead of this line.
Line 9: gross income
Line 9 reads: “Gross income. Add amounts in the right column (lines 1c, 2, 3b, 4b, 5a, 5c, 6b, 6d, 7, and 8).” For accrual filers: “If you use the accrual method, enter the amount from Part III, line 50.” That line is covered on Part III.
Example with invented numbers
Illustration, not an IRS example. Every result is computed from the invented inputs below; the same farm is carried to the expense pages.
| Line | Entry | Amount |
|---|---|---|
| 1c | From the resale margin on the lines 1 and 2 page (computed) | $4,200 |
| 2 | Sales of products you raised (invented input for the computed lines) | $61,300 |
| 3b | Taxable cooperative distributions (invented input for the computed lines) | $2,100 |
| 4b | Taxable agricultural program payments (invented input for the computed lines) | $6,800 |
| 5a, 5c | CCC loans (none) | $0 |
| 6b | Taxable crop insurance proceeds (invented input for the computed lines) | $9,500 |
| 6d | Amount deferred from 2024 (none) | $0 |
| 7 | Custom hire (machine work) income (invented input for the computed lines) | $1,900 |
| 8 | Other income (invented input for the computed lines) | $600 |
| 9 | Add the right-column amounts (computed) | $86,400 |
Line 9 comes to $86,400. Line 5a and line 6d are zero here because the farm made no CCC election and deferred nothing from 2024.
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
- Deferring only part of the crop insurance proceeds. The election covers all eligible proceeds from a single trade or business.
- Leaving the deferred amount out of line 6a. Line 6a is the total received in 2025 even when you elect to defer part of it.
- Reporting barter income only when cash changes hands. Bartering income is on the line 8 list.
- Adding line 3a or 4a into line 9. Line 9 adds the taxable lines 3b and 4b, not the gross lines.
Related: Schedule F overview, Form 1099-MISC boxes 5, 9 and 11, and Schedule C lines 6 and 7.
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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.