How do you report your farming income?

You can earn farming income as a self-employed farmer or as a partner of a farm partnership. Most of the rules that apply to a self-employed farmer also apply to a partner. However, if you are a partner, you should also read Reporting partnership income in Chapter 1 of guide T4003, Farming Income.

You report your farming income based on a fiscal period. A fiscal period is the time covered from the day your farming business starts its business year, to the day your farming business ends its business year. For an existing business, the fiscal period is usually 12 months. However, it can be shorter than 12 months in some cases, such as when a new business starts or when a business stops.

Self-employed individuals generally have to use a December 31 year end. If you are an eligible individual, you may be able to use an alternative method of reporting your business income that allows you to keep a fiscal period that does not end on December 31. To determine if you are eligible to have a fiscal year end that is not December 31, see guide RC4015, Reconciliation of Business Income for Tax Purposes, and Form T1139, Reconciliation of Business Income for Tax Purposes.

For more information, see Chapter 1 of guide T4003, Farming Income.

Forms and publications

• Guide T4003, Farming Income
• Guide RC4015, Reconciliation of Business Income for Tax Purposes
• Form T1139, Reconciliation of Business Income for Tax Purposes