Hedging G/L

[MJG CPA]

For an accrual-basis farmer, would accrued (unrealized) gains/losses from hedging transactions be reportable or only realized gains/losses from closed positions?

This farmer has consistently been reporting the net results each year which includes the unrealized g/l, but now I am questioning if this is proper. The only information I am finding that address this issue says you only report g/l on closed positions, but I'm wondering if it's different for accrual-basis taxpayers?

Any thoughts?

[RoyDaleOne]

See Pub 225 page 51 for a discussion of how to properly report these types of transactions for a farmer.