USDA’s current definition of Adjusted Gross Income (AGI) could deny farm families from receiving government payments if they operate as either an S corporation or Limited Liability Corporation (LLC) taxed as a partnership.
This calendar year is predicted to deliver the worst economics in grain farming in 20 years. Low grain prices and high input costs could actually lead to an operating loss, unless yields come in exceptionally high. However, this looming dark cloud may have a silver lining in the form of tax benefits.
In a statement delivered in the Rose Garden, Obama said, “In January of 1961, the year I was born, when President Eisenhower announced the termination of our relations with Cuba, he said: ‘It is my hope and my conviction that in the not-too-distant...
The House Ag Committee Biotechnology, Horticulture, and Research Subcommittee held a hearing recently that was clearly intended to emphasize the role that USDA can play in biotech labeling, a question that now is in the hands of the Food and Drug Administration.
Typically, the first cutting of alfalfa is taken somewhere around Memorial Day, plus or minus a week, and the second cutting usually comes approximately five weeks later. The majority of Nebraska alfalfa growers have gotten their first cutting off, although for many of those growers the first cutting was delayed, Anderson said.
This arrangement also has estate tax risk. Given that the payments back from the children are implicitly for Grandpa’s lifetime, the IRS could also apply Section 2036 to pull the property back into his estate at death (assuming Grandpa’s net worth exceeded the estate tax exemption and the IRS had estate tax to collect also).
Two features of the 2014 farm bill’s crop insurance coverage will be expanded to winter wheat and other crops starting in 2016, US- DA’s Risk Management Agency (RMA) announced recently. The move should aid growers besieged by extreme yield swings due to drought or excess moisture, although the benefits won’t come without higher premium costs.
“Growers have the newest fleet of equipment in the last 40 years. They can run without high repair bills,” notes Wade Litton, General Manager of Wade Inc., a John Deere dealership with 11 locations in the Mississippi Delta. Well-tooled operations combined with an abrupt collapse in grain farm incomes and uncertainty over Sec.
Beardi, who spent 22 years in the Army, said he was going through “intense therapy” for a year and a half at Walter Reed Hospital after being “blown up” in Iraq, when a Vietnam veteran picked him up twice a week and took him to a farm, where he found the physical exercise and working with animals to be therapeutic.
Crop farmers always face the balancing act of producing as many bushels as possible from their acres while at the same time protecting net income by avoiding overspending on inputs. Fertilizer is often high on the cost list. This growing season, in particular, is challenging farmers’ ability to remain profitable.
For too many, planning means a focus on next week’s activities. However, when it comes to income taxes, the perspective needs to be long-term. Today’s tax rate system is insanely complex (by design, but that’s a topic for another day). The hazard is not merely a more steeply graduated rate system; it’s also the layering of additional taxes (the 3.
What is the reasonable allocation of your purchase price to the fair market value of that tiling, given its age and condition? There is likely some fact-finding that is necessary to determine how many feet of tiling are in the ground and what is the...
Dave Ollila, a field sheep specialist for South Dakota State University Extension at the Rapid City Regional Center, said those who commingle cattle and small ruminants could see several benefits. The obvious plus would be that adding another enterprise to the operation creates more income, he said.
The questions are often the same. Does it make sense to give my land to the kids now before it becomes my estate? Or perhaps I should sell some of it during my lifetime? Or is it better to just let them inherit the land? I’ve heard these questions for years, but with our constantly changing tax system, the answers might now be different.
The study has been released shortly before the World Trade Organization (WTO) is expected to release a final ruling in a case that Canada and Mexico brought against the U.S. over COOL, charging that the labeling regime discriminates against Mexican and Canadian livestock and meat.