I have same problem and I would like to report the taxable grant money on schedule F to offset farm expenses that I incurred to meet the NCRS grant requirements (mostly labor expenses for tree plantings and forest stand improvements). I'm not concerned about the SE tax since I am showing a farm loss this year, I am more concerned that in showing a huge farm loss might trigger reclassification of the farm as a hobby farm, which it is not, it is a tree farm.
