I had similar question for farm rental (form 4835). The solution seems to be to NOT report the crop insurance proceeds in the 1099-MISC part of farm income step-by-step. Instead report the crop insurance proceeds further down under the heading "Crop Insurance Payments/Federal Disaster payments". After I did that I got the option to defer.
I'm not sure why there are 2 entry possibilities.
Did you get any clarification from TurboTax?
