Farm Industry Trends
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To Prevent Plant Or Not
Farmers are approaching the prevent planting crop insurance decision and current number crunching leans toward taking prevent plant, but you must run your own numbers.
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The Second MFP – How Much Will You Not Collect?
The USDA announced a new MFP program to help farmers. However, many farmers will not get the full payment they are entitled to.
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Are You a Farmer?
Farrmers have special provisions for making estimated taxes. However, you must qualify as a “farmer” and under tax reform that may become more difficult.
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Don’t Expect an Increase in the Corn Reference Price
The 2019 Farm Bill added the term Effective Reference Price. It allows the current reference price to increase, but don’t expect any increase for corn (unless you think we will get $7 corn in the next five years)
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LLC Equal Flexibility
LLC’s allow investors in farm operations to get a preferred return and then split profits after that return. You will start to see more of these in farming.
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Be Careful of Processing Cooperatives
For 2018, farmers who sell to a processing cooperative will likely have additional calculations and timing issue.
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What About Cooperative Transition Rule
We appear to have our “guidance” on the cooperative transition deduction under Section 199A. It is not very detailed and we provide one method of calculating this deduction.
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Are Major Changes Coming To Social Security
A bill from the House was released yesterday calling for major changes to Social Security. We review the major points.
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199A Proposed Regs or Final: Use What Is Best for 2018 Tax Returns
The final 199A regulations indicate you can use either the final or proposed regulations for 2018 returns only. If you farm as a C corporation, you may want to use the proposed regulations.
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Final 199A Regulations – Good News and Bad News
The IRS issued final 199A regulations on Friday. We recap the major changes regarding farm rental income. There is both good news and bad news.