Statement of farming activities (T2042)

Important: If you’re participating in the AgriStability and AgriInvest programs, you must complete the forms related to those programs and not form T2042. However, H&R Block’s tax software does not currently support the AgriStability or AgriInvest programs. If these programs apply to you, click here to find the retail office closest to you. You can drop off your documents at one of our retail locations using our Easy Drop-Off service™ and our Tax Experts will take care of the rest for you (fees will apply).

If you earned farming income as a self-employed farmer or as a partner in a farming business, use form T2042: Statement of farming activities to report your income and expenses for the year. If you’re filing a Québec tax return, you’ll also need to file Schedule L: Business Income to report your farming income (or loss). Fortunately, H&R Block's tax software will automatically complete your Schedule L for you, based on the information you enter on your T2042.

Note: You’ll need to complete a separate T2042 for each farming business you operate.

According to the Canada Revenue Agency (CRA) farming income includes the income you received from any of the following activities:

  • Livestock raising or showing
  • Poultry raising
  • Dairy farming
  • Fur farming
  • Tree farming and
  • Fruit growing

For a complete list of recognized farming activities, refer to the CRA's website.

Farming activity does not include:

  • The raising or breeding of animals, fish, insects, etc. for selling them as pets. This is considered a business activity and must be reported as business income on the T2125: Statement of business or professional activities.
  • Income you earned as an employee in a farming business, from trapping, or sharecropping.

Tax Tip: If you received an AGR-1: Statement of Farm Support Payments slip, be sure to enter the information from it on your T2042 form.