An easement is not taxable income.
The amount is subtracted from the basis of the property.
This lower basis may or may not affect the capital gain when the property is sold.
You can "ignore" the 1099-S and save it with your tax files. Keep it in mind when the property, which includes the easement, is ever sold.
You can also report it as the sale of your primary home (selecting rental home would trigger all sorts of depreciation entries). Enter the proceeds and then enter the basis as the same amount so that there is no gain no loss.
Again, since this is "like selling a slice" of the property, the amount of the easement payment is subtracted from the remaining basis.
If this property cost 200,000 and the easement payment was 10,000, your basis is now 190,000.
Would this be the best way to report it if the permanent easement was on rental farm land?
It depends.
If the amount you received for the easement is greater than the basis of the portion of the property affected by the easement, you need to reduce your basis in that part of the property to zero, and then treat the excess amount as a recognized gain.
Otherwise, it just reduces your basis.
According to Easements in the IRS' Publication 225, Farmer's Tax Guide:
The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. It reduces the basis of the affected part of the property. If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain.