vate, operate, or manage a farm for profit, either as owner or tenant. A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. It also includes plantations, ranches, ranges, and orchards and groves. This publication explains how the federal tax laws apply to farming. Use this publication as a guide to figure your taxes and complete your farm tax return. If you need more information on a subject, get the specific IRS tax publication covering that subject. We refer to many of these free publications throughout this publication. See chapter 16 for information on ordering these publications. The explanations and examples in this publication reflect the Internal Revenue Service's interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. However, the information given does not cover every situation and is not intended to replace the law or change its meaning. This publication covers subjects on which a court may have rendered a decision more favorable to taxpayers than the interpretation by the IRS. Until these differing interpretations are resolved by higher court decisions, or in some other way, this publication will continue to present the interpretation by the IRS.

How can the United States meet demands for agricultural production while solving the broader range of environmental problems attributed to farming practices? National policymakers who try to answer this question confront difficult trade-offs. This book offers four specific strategies that can serve as the basis for a national policy to protect soil and water quality while maintaining U.S. agricultural productivity and competitiveness. Timely and comprehensive, the volume has important implications for the Clean Air Act and the 1995 farm bill. Advocating a systems approach, the committee recommends specific farm practices and new approaches to prevention of soil degradation and water pollution for environmental agencies. The volume details methods of evaluating soil management systems and offers a wealth of information on improved management of nitrogen, phosphorus, manure, pesticides, sediments, salt, and trace elements. Landscape analysis of nonpoint source pollution is also detailed. Drawing together research findings, survey results, and case examples, the volume will be of interest to federal, state, and local policymakers; state and local environmental and agricultural officials and other environmental and agricultural specialists; scientists involved in soil and water issues; researchers; and agricultural producers.