It depends on whether the insurance reimbursement results in you having a gain or loss on the casualty (your barn). Basically, if the insurance check was more than what you had invested in the barn (less any depreciation taken) you have a taxable gain.
See IRS Publication 547 at this link for this formula to determine is you have a gain or loss on your casualty:
"Amount of loss.
Figure the amount of your loss using the following steps.
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Determine your adjusted basis in the property before the casualty or theft.
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Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft.
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From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive.
For personal-use property, apply the deduction limits, discussed later, to determine the amount of your deductible loss.
Gain from reimbursement.
If your reimbursement is more than your adjusted basis in the property, you have a gain. This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. See Figuring a Gain , later."
You are not required to spend the insurance reimbursement on the property with a loss.
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