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

(Revised 2/9/2026 Release 26.1 )

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

Conservation Reserve Program (CRP) payments are counted as unearned income. They are included in the net income from Schedule C, E, F, or Form 1099 (if no tax forms are provided).

The income is treated as follows if tax forms are provided:

Subtract the CRP amount from countable income. The countable income would be carried over to the Form 1040 from the respective schedules. The allowable expenses are subtracted from the income prior to the income being carried over to the Form 1040. Therefore, do not allow more expenses.

The income will be treated as follows if tax forms are NOT provided:

Use the gross amount from Form 1099. Subtract the allowable expenses. The individual must provide ledgers of the expenses including property taxes, insurance and other expenses for the land.