A bill to amend the Internal Revenue Code of 1954 to allow a farmer to elect to include in income agricultural commodities received under a payment in kind program at the time such commodities are sold, and for other purposes.

Amends the Internal Revenue Code to allow taxpayers who receive agricultural commodities under a Federal payment-in-kind program to elect to treat such commodities as income at the time of sale or exchange rather than at the time of receipt.

Treats such commodities as commodities produced on acreage diverted from agricultural use for purposes of the estate tax valuation of farm property.