Agricultural payment being taxed at a higher rate than it should be?

Hi everyone!

I apply for the same farm grant every year for my bee farm. Its always $4,000 and I have used freetaxUSA for the past several years to do my filing. I made about the same amount of money at my day job in both years, but when I added the agricultural payment this year (Form 1099-G), it increased my total tax burden by $1,528 between State and Federal taxes. (Federal increases by $1,390 and State increased by $148)

My W2 income is 61K so I'm confused why this agricultural payment is being federally taxed at a much higher rate than it should be.

Anyone know why this might be the case?

Thank you!