Farm Income - 1099PATR and Agricultural Program Payments

1099-PATR

If you received distributions from a cooperative in 2021, you should receive a Form 1099-PATR. On line 3a, show your total distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations, and redemptions of nonqualified written notices of allocation and per-unit retain certificates.

Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates.

Don't include as income on line 3b patronage dividends from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 3a only. Because you don't report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items.

For more instruction see http://www.irs.gov/pub/irs-pdf/i1040sf.pdf