This fact sheet provides straightforward guidance to help producers understand the potential tax implications of receiving USDA disaster grant payments. It explains when these funds may be treated as taxable income, how they can affect overall tax liability, and what records and estimated payments may be needed. The resource encourages individuals to plan ahead, maintain documentation, and seek qualified tax advice to ensure compliance with federal and Virginia tax laws. Designed for educational use, the fact sheet supports farmers and other recipients in making informed financial decisions following a disaster.