FYI > Farm Issues  farm ISSUES Deferral of Insurance Proceeds Farmers are not eligible to defer crop insurance proceeds related to crop protection revenue. If you received insurance proceeds related to a Crop Revenue Coverage (CRC) or a Revenue Assurance (RA) policy, you are not eligible to defer. Farmers may still continue to defer crop insurance proceeds related to qualifying weather related events like droughts, floods, wind, hail, or frost.   Farmers must incur a physical loss of yield from a weather related event in order to defer the income.    If you received insurance proceeds related to both, only the portion associated with the weather related event is eligible for deferral. To defer crop insurance proceed deferring the sale of crops to the following year must be a normal business practice. The IRS guidelines on normal business practice are 50% or more of the crop sales must normally be deferred into the following year. Each crop is examined on an individual basis.  Farm Equipment Depreciation For 2009, new (not used) farm equipment will have a 5 year life. Used farm equipment will maintain a 7 year life. Grain bins, fences, and other land improvements do not qualify.  Please contact Dale Schwieterman if you have questions regarding the above changes.