A bill to amend the Internal Revenue Code of 1954 to allow farmers to defer certain payments received for losses to crops caused by natural disasters until the taxable year in which the income from the crops have been reported.

Expands, under the Internal Revenue Code, the special rule which permits, in the case of insurance proceeds received as a result of destruction or damage to crops, a taxpayer to elect to include such proceeds as income in the year following destruction (if the crop income would have been reported in such year), to treat payments received under the Agricultural Act of 1949 as a result of destruction or damage to crops by natural disaster (or inability to plant because of such disaster) as insurance proceeds.