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Title 7: SNAP Page 72 Iowa Department of Health and Human Services Employees’ Manual Chapter I: Specific Households and Participants Self-Employment Policies for Farmers Revised February 13, 2026 Income Income Legal reference: 7 CFR 273.9(c); 273.9(b)(1)(ii); 273.11; 273.9(b)(2)(v) Do not count the following as income:  Federal gasoline tax credit  State gasoline tax refund  Animals slaughtered for home consumption  Crop insurance proceeds received for damaged or destroyed crops if received as a non-recurring lump-sum payment Count patronage dividends as income when a cooperative makes the payments in cash. When a farmer sells grain, count the sale price as income, even if the money is used to repay a commodity credit loan. If a farmer uses the grain itself to repay the loan (instead of paying with money), the value of the grain is the amount of money that was previously loaned. Consider that amount as income at the time of repayment. Offsetting a Farm Loss Against Other Countable Income Legal reference: 7 CFR 273(3)(1)(i), 273.11(a)(2)(iii) NOTE: This policy applies only to farmers who receive or anticipate receiving annual gross income of at least $1,000 from the farming enterprise. If the cost of producing the self-employment income from farming exceeds the income derived from self-employment as a farmer, deduct the loss from any other countable income in the household. If a farm self-employment enterprise results in a loss, offset that loss from the household’s gross income before the income is compared to the gross income eligibility standards. However, apply the earned income deduction to the gross earnings before the excess farm expenses are offset. Allow the standard deduction after any farm loss is deducted from the countable earned and unearned income. If the farming household has other sources of nonfarm self-employment, offset any farm losses against any gains from other self-employment enterprises first. Then determine the amount of the farm loss, if any. Offset any remaining farm loss against other sources of non self-employment income. Then compare the amount to the gross income limit.