The Missouri Soybean Association (MSA) has secured an important win for Missouri farmers by successfully advocating for certain federal agricultural disaster assistance payments to be treated as tax exempt for Missouri income tax purposes. This outcome ensures relief funds intended to help farmers recover from economic hardship and weather-related losses remain fully available for their intended purpose.
Through direct engagement with the Missouri Department of Revenue, MSA helped ensure that payments from the Farmer Bridge Assistance (FBA) Program, Supplemental Disaster Relief Program (SDRP), and Emergency Livestock Relief Program (ELRP) now qualify for a subtraction from federal adjusted gross income when calculating Missouri taxable income. These programs provide meaningful financial relief for family farms across the state, and protecting these dollars from state taxation represents real-world impact for farm operations facing continued economic pressure.
“This is about making sure disaster relief works as intended,” said Casey Wasser, executive director and CEO of Missouri Soybeans. “When farmers receive assistance due to hardship, farmers should know state law ensures those dollars support recovery and stability and are not subject to state income tax.”
What Farmers Need to Know When Filing Taxes
The agriculture disaster subtraction appears as a separate line item on the Missouri tax return. Typically, a CPA or tax preparer will enter this subtraction on Form MO-A (page 2), which then flows through to Missouri Form 1040.
It is important to note that not all disaster-related payments automatically qualify for this subtraction. Because of this, MSA strongly encourages farmers to speak directly with their CPA or tax preparer when filing their returns. Tax professionals must verify eligible programs using the Department of Revenue’s published list and attach supporting documentation, including:
- The USDA Form 1099-G received for disaster payments
- Federal Schedule F, showing the reported income
A Reminder for Farmers
To ensure you receive the full benefit available to your operation, MSA encourages all farmers to ask their CPA or tax preparer about the agriculture disaster subtraction when filing your Missouri return. A simple conversation could result in meaningful savings.
This outcome reflects MSA’s ongoing commitment to practical, farmer-focused advocacy and delivering results that protect farm profitability and long-term viability.
