If a farmer does not have access to on-farm storage for field crops in grain bins then commercial storage may be secured. Storage costs may be deducted from the sale at delivery. Farmers should document this charge and report the storage fee on Line 27, Schedule F.
Example. Susan does not have on-farm storage. All of Susan’s grain is stored at the local elevator where she is charged $0.03 per bushel per month for storage. Her aggregate storage cost this year was $9,500. Susan reports and tdeducts this cost on Line 27, Schedule F.
The Center for Agricultural Law and Taxation is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.