Farm subsidy?

[Kea]

Client has a farm and participates in the USDA drought insurance program. Thanks to the continued drought in TX, they receive payments from this program. It is reported on a CCC-1099G as a "Livestock Forage Program."

Does this mean Line 35 - "Did you receive a subsidy in 2012?" gets answered "Yes"?

I don't think so since the instructions state a subsidy is:

• Any direct or counter-cyclical payments under title I of the Food, Conservation, and Energy Act of 2008 (or any payment you elected instead of this payment).

• Any Commodity Credit Corporation loan.

It's not a loan and I'm not sure about the first bullet.

[Dan]

You could look at the following link

http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=pfs&newstype=prfactsheet&type=detail&item=pf_20130124_insup_en_acredcp.html