Report the payment as Other farm income at the screen Your Farming Income and Expense.
Then report an offsetting expense to zero out the income. Select Other miscellaneous expenses with a description such as 'right of way sold - basis adjustment'.
Did you sell a right of way easement? Do you still own the land and still pay property taxes on the land?
If you still own the land, the general treatment is that the payment is not income but reduces the basis in the land that you own. So, if you paid $10,000 for the land and received a right of way payment for $1,000, your new basis in the property is $9,000.
@debback56
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