If you received distributions from a cooperative, you should receive Form 1099-PATR. Show your total distributions from cooperatives in the first box (line 5a on a paper form). This includes patronage dividends, non-patronage distributions, per-unit retain allocations, and redemption of nonqualified notices and per-unit retain allocations.
Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates.
Do not include as income patronage dividends from buying personal or family items, capital assets, or depreciable assets in taxable income section. Enter these amounts on cooperative distributions only. If you do not report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items.
Agricultural Program Payments
Enter the total of the following amounts here:
Price support payments.
Market gain from the repayment of a secured Commodity Credit Corporation (CCC) loan for less than the original loan amount.
Cost-share payments (sight drafts)
Payments in the form of materials (such as fertilizer or lime) or services (such as grading or building dams).
These amounts are government payments you received, usually reported to you on Form 1099-G. You may also receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.
On the 4th box, report only the taxable amount. For example, do not report the market gain shown on Form CCC-1099-G here if you elected to report CCC loan proceeds as income in the year received (see next help). No gain results from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated as repurchasing the commodity for the amount of the loan repayment. However, if you did not report the CCC loan proceeds under the election, you must report the market gain here.
For more instruction see http://www.irs.gov/pub/irs-pdf/i1040sf.pdf