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Are Cost-Sharing Conservation Payments to Farmers Subject to 1099 Reporting?

February 26, 2026
February 26, 2026

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Q. We offer cost sharing where money is provided to farmers to complete conservation best management practice implementation projects to address soil erosion and protect water quality on their farms. It provides “free” technical assistance and offers financial assistance on projects. The financial assistance is usually up to 75% of the project cost to construct BUT sometimes could be a lower percentage (50%) or higher percentage (90%), depending on the funding utilized, the project priority…

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