Hope I don't sound sarcastic or rude, but are you sure about that? This is a 1099-G from the USDA. When I do as you say (add the 1099-G income as an Agriculture Payment on Sched F), my federal tax goes from me owing them $286 to them paying me $736! The state tax goes from them paying me $116 to them paying me $1675! That seems like a major change to me. I know why some of that may be....without this 1099 income showing up on the Schedule F, we had a loss this year. Adding the income to the schedule F, we showed a profit and we then had to pay SE tax, but TT then wrote off health insurance premiums and gave us a qualified business deduction from form 8995. It all sounds too good!
