Farm Operations
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Headings Can Be Deceiving
We received the attached article with a very misleading heading. We explain why.
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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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Is it Better to Pay Interest or the Penalty
A reader responds to our post on underestimated taxes and we provide related guidance.
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Cash or Grain – Which is Better?
Farmers can either give grain or cash to a charity. In almost all cases, it is much better to give grain from an income tax standpoint.
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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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Common Ownership = No Hours Required!
There is confusion on hours required under common ownership. The quick answer is there are no hours required.
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1245 Not 1231
When a farmer sells equipment, it can either be taxed as ordinary or capital gains income. We review the calculations.
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Get Ready to Pay An Extra $558
The Social Security Administration released their 2019 cost of living amounts last week and it can cost some farmers an extra $558.
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2017 Corn ARC Information
The FSA released last week the first full data on the 2017 crop ARC. I provide some data on corn ARC.
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Payment and AGI Limitations
We continue to get questions on how the payment and adjusted gross income limits will apply to the new Market Facilitation Program. We provide answers and some examples.