Yes, your tenant is correct in wanting to report his rental payments to you on a Form 1099-MISC.
This ensures he can claim a business deduction for his payments to you and that you report those payments as income on your tax return.
There is a "Farm Rental Income and Expenses" interview in the "Business Income and Expenses" section of TurboTax Self-employed (or Home & Business).
@pmchristner
