M-MTax
Level 14

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You are the trustee, however, and have management responsibilities and, although the trust may not provide for reimbursement of expenses, ordinary and necessary expenses incurred as a result of farming operations should be paid by the trust (it is a necessity without which the farming operations would not produce income and I'm not sure the beneficiaries, who are not involved in the operations have the authority to disallow the trust from paying those expenses). 

 

Again, as trustee, I would recommend that you consult an attorney in your area. This expense should also be paid from the trust corpus and, frankly, I'm uncertain why the beneficiaries, knowing the trust would have to pay an 8% management fee, would take issue with ordinary and necessary expenses of operating the farm being paid directly from income derived from farming operations.