1099 Required for Crop Damage payments made by utility company?

[TB12]

When a utility (or pipeline company, cable company etc.) makes crop damage payments to farmers, does the company need to send the farmer a 1099? For example, a utility company needs to fix a damaged pole that's by a field of corn and damages the corn with equipment - the utility company pays the farmer for the lost crop . . . should the utility company send the farmer a 1099? While searching the internet, I've come across arguments for both sides; looking at the 1099 instructions, it references crop insurance proceeds or government disaster payments, but I don't seen any reference to other crop damage payments. I know that Title 26 states that all income is taxable unless specifically exempt . . . so is a reimbursement for crop damage exempt?

Thanks!

[Jiggers]

When a utility (or pipeline company, cable company etc.) makes crop damage payments to farmers, does the company need to send the farmer a 1099? For example, a utility company needs to fix a damaged pole that's by a field of corn and damages the corn with equipment - the utility company pays the farmer for the lost crop . . . should the utility company send the farmer a 1099? While searching the internet, I've come across arguments for both sides; looking at the 1099 instructions, it references crop insurance proceeds or government disaster payments, but I don't seen any reference to other crop damage payments. I know that Title 26 states that all income is taxable unless specifically exempt . . . so is a reimbursement for crop damage exempt?

Thanks!

It is not exempt.

The payment is for his crop. Doesn't matter if the utility company pays for the crop or the company that buys his corn.

[TB12]

Thank you!

Just wanted to say Thanks for the input )