Farm Leadership

  • New Tax Goodies – Updated

    A very observant reader spotted an error in my last post on the new tax goodies.  In the reporting section for real estate rentals, the form 1099 reporting is for services provided to the real estate investor for items such as repairs, accounting, etc.  The payer of the rents was already required to report this […]

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  • Begin to Lock in 2011 and 2012 profits?

    As corn starts to exceed $5 in price and pricing can be locked in 2011 or even 2012 crops, have you checked your budgets for those years.  If you have and are able to lock in your major input prices such as fertilizer and diesel, you should be looking at making $250 per acre or […]

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  • Is an Unlimited Estate Tax Exemption for Farm Estates Harmful?

    I came across an article put out by the Center on Budget and Policy Priorities from Washington DC.  The gist of the article was that having an unlimed estate tax exemption for farm estates is unnecessary and likely harmful.  The focus of the article is that this policy would create 3 harmful situations: First, according […]

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  • Hedge is Good – Speculation is Bad

    Many more farmers are using futures contracts to hedge their crops these days than 20 or 30 years ago.  Hedging income and losses are treated as ordinary income or loss as part of the farming operation.  What many farmers do not know is that if they are using futures to speculate in other commodities or […]

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  • You Do Not Need to Own Any Land to Farm

    Moe Russell, of Russell Consulting Group wrote a very good article in the Corn and Soybeans Digest clear back in 2007 on the fact that you do not need to own land to be a farmer.  I personally think in today’s environment, most farmers who already own a bunch of land with no debt are […]

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  • Watch for Farm Partnership Tax Penalties

    In the recent Holdner Tax Court case, the IRS was able to make an argument that the farming operations carried on by father and son were in fact a partnership and not two separate farming operations that should be reported on their respective schedule F. In the case, the father and son had operated the […]

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  • Should Wheat Farmers Lock in 2011 Prices

    As I write this post September 2011 wheat futures are trading at slightly more than $7 per bushel.  If I had asked any wheat farmer three months ago would they like to lock in $7 wheat for next year’s crop, I am fairly certain that 100% of them would have said yes. These farmers now […]

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  • Dividend Tax Rates are About to Skyrocket

    Congress back in 2001 dropped the maximum tax rate on dividends received by a taxpayer from 39.6% to 15% (plus any applicable state income taxes).  But under the so-called Sunset Rule, these special low rates expire at the end of 2010.  Beginning in 2011, the top rate is expected to go back to 39.6% and […]

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  • Tap Your 401(k) to Start Your Farm Business

          I know that many of our readers currently have jobs not related to farming, however, you would like to leave that job and start farming on a full-time basis.   One of the major drawbacks to doing this is the lack of capital.  However, many of you could have a substantial asset that […]

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  • The Law of Diminishing Returns

    In my post yesterday, I indicated that maximizing your net return per acre was more important than the most yield per acre.  One of our readers wrote a great comment regarding how their operation tries to maximize their yield to achieve the most net revenue per acre. My post should have stressed that your farm operation […]

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