If you worked the farm, you materially participated. If you state that you don't, you will not be able to take your loss. If you rented the farm/land, then the material participation has a different meaning.
Material participation most often applies to business activities, including farming or ranching. Material
participation requires a producer to be involved in the operation of a trade or business activity on a regular,
continuous, and substantial basis, thereby avoiding the passive activity loss rules. The level of involvement applies
to the owner of the business or an owner of an interest in a partnership or an S Corporation.
Activities associated with material participation (especially for landlords) are those things that, considered in their
totality, show that the producer was significantly involved in the production of farm commodities. Examples
include but are not limited to:
• Paying at least half the direct production costs (operating expenses),
• Furnishing at least half the tools, equipment, and/or livestock,
• Advising the tenant, and/or
• Regularly and frequently making or taking part in management decisions. These are examples of Farm Rental activities.
Test 1. Participation Exceeds 500 Hours
The producer participates for more than 500 hours in the specific activity during the taxable year. If both spouses
participate in the farm business, the participation of both spouses is counted, but the participation of children and
employees is not counted.
https://www.ruraltax.org/files-ou/Passive_Loss_Rules.pdf
Another source says:
The kind of activities that a taxpayer should be able to document during each year may include the following: consulting with advisers, other experts in the industry, attending industry events, auctions or other sales, keeping business records, discussing matters with one's spouse and other partners, implementing or formulating business plans and revising them, reviewing finances, making cost projections, making disbursements, speaking with vendors on the telephone or in person, talking to potential customers, general duties of animal husbandry or harvesting of crops, planning and making improvements (such as building fences) tending to the physical labor on the farm or ranch, supervising others hired to work for you, and performing other tasks and decision-making functions. But it is imperative that records be kept to reflect the number of hours involved.
http://www.cattletoday.com/archive/2008/November/CT1802.shtml
