Treatment of Conservation Reserve Program Property and Payments 510-03-75-10

(New 7/1/2014 ML #3404)

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(N.D.A.C. Sections 75-02-02.1-28(1) and 75-02-02.1-37(3))

 

 

Treatment of income and expenses from Conservation Reserve Program Property is defined as follows:

  1. Income: CRP payments are considered income. They will be included in the net income amounts from schedule C, E, or F.
    • If the individual provides a copy of their income tax forms, the countable income would be carried over to the Form 1040. Therefore, the Adjusted Gross Income from the Form 1040 would be used.
    • If the individual does not file taxes, use the gross amount from the form 1099 less all related expenses including property taxes, insurance and other expenses for the land. CRP payments no longer need to be segregated from farm income for ACA Medicaid Households.
  1. Expenses: Actual expenses for maintaining the CRP contract must be allowed including those expenses for property ownership such as taxes and insurance.
    • If the individual provides a copy of their income tax forms, the allowable expenses would have been subtracted from the income prior to the income being carried over to the Form 1040. Therefore, the Adjusted Gross Income from the Form 1040 would be used.
    • If the individual does not provide a copy of their income tax forms, the individual will need to provide ledgers of the expenses.