Yes.
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.
