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What is the Wisconsin Farm Support Program?
The Wisconsin Farm Support Program is a federally funded program that provides relief to farmers that suffered economic damages in 2020 as a result of the COVID-19 pandemic. The first round of payments was sent July 15 to qualified farmers with gross income of $35,000 to $5,000,000. A second round of this program is described in the following questions and answers.
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When can I apply?
Starting at 7:00 a.m. on August 10 and ending at 11:59 p.m. on August 24.
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How do I apply?
You must apply online. The application will be available at revenue.wi.gov on August 10. If you cannot apply online, you may request assistance by calling the Wisconsin Department of Revenue (DOR) at (608) 266-2772.
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Can someone else apply on my behalf?
Farmers may apply themselves or have their financial or legal counsel apply on their behalf, similarly to when filing taxes with DOR. The person that completes the application must enter their first and last name.
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When and how will I receive the money?
DOR will issue payments on September 18. You may request to have the money direct deposited to a bank account or receive a check in the mail.
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How will you determine who gets funds from the Wisconsin Farm Support Program?
Money will be allocated on a sliding scale and will be based on the amount of gross farm income in 2019. The amount will be determined after the application period closes on August 24. Given the amount of funding available for the second round of the program, payments will be smaller than the first round.
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Will my payment be intercepted to pay delinquent taxes or other debts?
No.
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Are payments from the Wisconsin Farm Support Program considered taxable income?
Income from the program is included in federal income pursuant to sec.
61 of the Internal Revenue Code, unless an exemption applies.
For Wisconsin, this income should be excluded from federal adjusted gross income by making a subtraction modification on the appropriate line of the tax return. Expenses paid for with the program and deducted in the computation of federal adjusted gross income are not required to be added back on the Wisconsin return. Taxpayers should amend their Wisconsin returns if they have already filed and included these amounts in income.
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Who can apply for the Wisconsin Farm Support Program?
- An
individual, estate, or
trust, may apply for the Wisconsin Farm Support Program if
all the following apply:
- The business filed its 2018 Wisconsin income/franchise tax return, if required.
- Gross income from farming for 2019* is at least $10,000 but not more than $5,000,000. (Note: This does not include farm income passed-through from a partnership, tax-option (S) corporation, estate or trust. These entities must apply under their own name and Federal Employer Identification Number (FEIN).)
- The primary business activity based on the North American Industry Classification System (NAICS) code begins with digits 111 or 112. Search for your NAICS code at:
naics.com/search/.
- The value of real and tangible personal property owned or rented and used by the business in Wisconsin is at least 75% of the value of real and tangible personal property owned or rented and used by the business for all operations.
- The farming business is operating at the time the application is submitted in 2020.
- The farming business suffered economic damages in 2020 from the COVID-19 pandemic that exceed the amount of relief available for the business.
- A
corporation or
partnership may apply for the Wisconsin Farm Support Program if
all the following apply:
- The business filed its 2018 Wisconsin income/franchise tax return, if required.
- Gross income from farming for 2019* is at least $10,000 but not more than $5,000,000. (Note: This does not include farm income passed-through from a partnership, tax-option (S) corporation, estate or trust. These entities must apply using their own name and Federal Employer Identification Number (FEIN).)
- The primary business activity based on the North American Industry Classification System (NAICS) code begins with digits 111 or 112. Search for your NAICS code at:
naics.com/search/.
- The value of real and tangible personal property owned or rented and used by the business in Wisconsin is at least 75% of the value of real and tangible personal property owned or rented and used by the business for all operations.
- The amount of labor costs paid to individuals for services performed in Wisconsin is at least 75% of all labor costs paid to individuals. Labor costs include amounts paid to a professional employer organization or a professional employer group.
- The farming business is operating at the time the application is submitted in 2020.
- The farming business suffered economic damages in 2020 from the COVID-19 pandemic that exceed the amount of relief available for the business.
*See exception in question 10 below for farm businesses that started in 2020.
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I started my business in 2020. Can I qualify for the Farm Support Program?
Yes. To qualify, you must have at least $10,000 but not more than $5,000,000 of gross farm income so far in 2020. Use the 2019 federal
Schedule F,
Profit or Loss From Farming to figure the amount of gross farm income you have earned so far in 2020. Enter the amount from line 9 of Schedule F on the application.
- I applied for the first round of the Wisconsin Farm Support Program and received a relief payment. Can I apply again?
No. If you received a payment in the first application round, you do not qualify for a second payment.
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I applied for the first round of the Wisconsin Farm Support Program and was denied a relief payment. Can I apply again?
Do not apply again if either of the following is true:
- You received a payment in the first round.
- You were denied in the first round because your NAICS code entered on the application did not match the tax information on file with DOR. DOR uses your tax information to verify your eligibility for the Wisconsin Farm Support Program.
You may apply again if either of the following is true:
- You were denied in the first round because your gross farm income was not verified.
- You were denied in the first round because your gross farm income was below $35,000, and your 2019 gross farm income is $10,000 or more.
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My farm business is a Limited Liability Company (LLC). Can LLC's apply for the Wisconsin Farm Support Program?
You must apply using your individual name and SSN if you are the only member/owner of your LLC.
An LLC may apply using the LLC's name and FEIN
only if the LLC files a corporate, partnership, or fiduciary tax return. If you are unsure how your LLC is treated for tax purposes, please consult your tax preparer or call DOR at (608) 266-2772.
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Can a nonprofit corporation apply for the Wisconsin Farm Support Program?
Yes. A nonprofit corporation may apply even though it may not be required to file a Wisconsin income/franchise tax return. A nonprofit corporation must use the amount from line 9 of a pro forma federal
Schedule F to determine the corporation's gross income from farming. Donations and grants provided to a nonprofit corporation are not considered gross income from farming for purposes of this program.
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Can a tribal entity operating a farm business apply for the Wisconsin Farm Support Program?
Yes. A tribal entity operating a farm business may apply for the Wisconsin Farm Support Program. A tribal entity must use the amount from line 9 of a pro forma federal
Schedule F to determine the tribal entity's gross income from farming. Donations and grants provided to a tribal entity are not considered gross income from farming for purposes of this program.
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How long will the application take to complete?
The online application will not take long to complete so long as farmers have their 2019 federal tax return ready when applying. The amount of gross income from line 9 on the 2019
Schedule F is used to determine eligibility and amount of payment.
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What counts as "gross income from farming" for purposes of qualifying for the Wisconsin Farm Support Program?
"Gross income from farming" is the amount reported on line 9 of the 2019 federal
Schedule F. A corporation, including a tax-option (S) corporation and a nonprofit corporation, must use the amount from line 9 of a pro forma Schedule F to determine the corporation's gross income from farming. Farm income is described on page 8 of IRS
Publication 225,
Farmer's Tax Guide. "Gross income from farming" does not include income not reported on Schedule F, such as gains or losses from sales or other dispositions of the following farm assets:
- Land
- Depreciable farm equipment
- Buildings and structures
- Livestock held for draft, breeding, sport, or dairy purposes
For example, income and gains reported on the following IRS forms are not gross farm income for purposes of this program: Schedule C, Schedule D, Schedule E, Form 4797, and Form 4835.
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What if I have not filed my 2019 tax return?
If you have not filed your 2019 tax return, you still need to know the amount from line 9 of 2019
Schedule F that will be reported when you file your return. If you cannot calculate your 2019 gross farm income from your books and records, please consult your tax preparer or call DOR at (608) 266-2772.
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Am I required to file a 2018 and 2019 tax return to be eligible for the Wisconsin Farm Support Program?
No. If you are not
required to file a Wisconsin income or
franchise tax return, you may still apply. If your application is denied, you should respond immediately with evidence that you are not required to file. Your eligibility is based on the amount of gross farm income that would be reported on line 9 of the 2019
Schedule F as if you were required to file an income tax return.
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I file my taxes on a fiscal year. What amount of gross farm income do I report on the Wisconsin Farm Support Program application?
Fiscal year tax filers should use gross farm income for January 1, 2019, to December 31, 2019, to report on the application. Use a 2019
Schedule F to help determine the amount that would be reported on line 9 as gross farm income as if you reported your taxes for the 2019 calendar year. If you cannot calculate your 2019 gross farm income from your books and records, please consult your tax preparer or call DOR at (608) 266-2772.
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My spouse and I own and operate a farm business together which we elect to treat as a qualified joint venture under sec. 761(f) of the IRC. We each file a separate Schedule F, reporting our respective share of income and expense from the farm business with our jointly-filed individual income tax return. How do we complete the Wisconsin Farm Support Program application?
Only one of you should fill out the application. You should combine the gross farm income from line 9 of your separate Schedules F.
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My spouse and I each own and operate separate farm businesses and file two separate Schedules F. Can we each qualify separately for the Wisconsin Farm Support Program?
Yes. Both of you may apply separately for the Wisconsin Farm Support Program using your separate gross farm income from your separate Schedules F. You may not combine your separate gross farm income for purposes of qualifying for the program.
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What method is used to value the real and tangible personal property owned or rented by a farming business?
Real and tangible personal property owned by the business is valued at its original cost, and real and tangible personal property rented by the business is valued at an amount equal to the annual rental paid by the business, less any annual rental received by the business from sub-rentals, multiplied by 8.
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Should the amount of labor costs and property of a disregarded entity be included in the parent owner's amount of labor costs and property?
Yes. The amount of labor costs and property from a disregarded entity is included in the owner's labor costs and property. The owner, not the disregarded entity, should submit the application under the owner's name. A disregarded entity refers to a business entity that, for tax purposes, is not recognized as a separate entity from its owner and does not file a separate federal income tax return from its owner. For example, a farm business that is organized as a single-member limited liability company may report the farm income on
Schedule F of the owner's individual income tax return, federal Form 1040. However, other single-member limited liability companies may elect to be taxed as a corporation and file a federal corporate income tax return separate from its owner.
Note: Corporations filing a combined return must qualify independently of each other and separately apply for the Wisconsin Farm Support Program.
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May a landowner who rents out their farm qualify for the Wisconsin Farm Support Program?
Only landowners who materially participate in the operation or management of the farm may qualify for the Wisconsin Farm Support Program. Landowners filing federal Form 4835,
Farm Rental Income and Expenses, federal Schedule E,
Supplemental Income and Loss, or federal Form 8825,
Rental Real Estate Income and Expenses of a Partnership or an S Corporation, do not qualify.
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How will I know if my application is approved or denied?
You will receive an email from DOR that confirms the approval or denial of your application.
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If my application is denied, do I resubmit my application?
Please do not resubmit an application. DOR uses information from your 2018 and 2019 tax returns to determine if you qualify. If you receive an email denying your application, you may contact DOR by 4:30 p.m. on September 4 to resolve any errors submitted with your original application. Call DOR at (608) 266-2772 or email
DORFarmSupport@wisconsin.gov.
Note: Applicants that do not resolve errors by 4:30 p.m. on September 4 will not receive a payment from the Wisconsin Farm Support Program. Do not reapply to report a different amount of gross farm income than what you reported on your tax return.
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What if the amount of gross farm income reported on my tax return is incorrect?
You must file an amended tax return and resolve any errors with DOR by 4:30 p.m. on September 4. Call DOR at (608) 266-2772 or email
DORFarmSupport@wisconsin.gov.
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Will I receive more funds if I apply earlier?
Farmers are highly encouraged to apply as soon as possible to ensure DOR can distribute funds as quickly as possible following the deadline. However, the timing of your application has no impact on the amount of funds you receive.
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Will the amount of my direct payment be released to the public?
In the event of a public records request, the department will be legally required to provide information including your name and the amount of any payments you receive through the Wisconsin Farm Support Program.
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Why can’t farmers with less than $10,000 in gross farm income apply?
We understand the extremely difficult challenges that farms of all types and sizes are facing, especially during the COVID-19 pandemic. With a finite amount of resources available to address a widespread need for support, some difficult decisions had to be made about how to distribute this funding most effectively. The parameters of this program were designed, in part, to address gaps in USDA programming by providing immediate resources to Wisconsin producers who rely on agriculture as their primary livelihood.
The income eligibility requirements of the Wisconsin Farm Support Program were developed in collaboration with a variety of organizations representing Wisconsin farmers, including:
- Chippewa Valley Bean
- Cooperative Network
- Dairy Business Association
- Ginseng Board of Wisconsin
- National Farmers Organization
- Professional Dairy Producers (PDPW)
- Wisconsin Apple Growers Association
- Wisconsin Cattlemen’s Association
- Wisconsin Corn Growers Association
- Wisconsin Dairy Alliance
- Wisconsin Farm Bureau Federation
- Wisconsin Farmers Union
- Wisconsin Pork Association
- Wisconsin Potato & Vegetable Growers Association
- Wisconsin Poultry and Egg Industries Association
- Wisconsin Soybean Association
- Wisconsin State Cranberry Growers Association
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What if I have other questions?
Contact us: