Farm Operations
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You Can Use an IRA Too – Maybe!
My post from yesterday resulted in several comments and questions that I would like to respond to. One comment is that code section 4975 deals with prohibited transactions regarding you and your pension plan or IRA. There are severe penalties for not obeying the rules regarding these transactions. However, if you obey the rules, the […]
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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 you could tap […]
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Net Revenue Per Acre Trumps Yield Per Acre
I was watching Agday yesterday and noted in the business section that Mark Gold of Top-Third Marketing was the guest and had a discussion on how gross revenue per acre was more important than yield per acre. His insight is that it can be more important to budget for getting top marketing dollars for your […]
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New Drought Resistant Seed May Expand Corn Belt
The April 29, 2010 issue of Bloomberg Businessweek had a good article on how the seed companies are developing drought resistant corn seed that may expand the corn belt farther into Kansas, Nebraska, and Oklahoma. Another benefit of the seed is a reduction in the amount of irrigation that is needed. This can lead to […]
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Farmers – New Credit for Health Care Premiums Paid
Although I am usually on the other side from the IRS, I will admit that their web-site is one of the best sites I have used for accessing tax information. The recent Health Care Reform law enacted a new employer credit for certain employers who pay for their employee’s health care premiums. I would estimate […]
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We Don’t Want a Partnership – Part 2
In my previous post, I discussed a situation that applies to many farmers where there was joint ownership of land and whether a partnership tax return is required to be filed. In that post, I indicated that in many cases, a partnership tax return is required and if one is not filed, then […]
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The Patient Protection and Affordable Care Act (Health Care Act) – Tax Provisions
My good friend Scott Heintzelman of The Exuberant Accountant recently posted a summary of the information on the new Health Care act that passed Sunday night and I thought I would post the same summary since this new Act will affect all of us as Americans and as farmers. Premium Assistance Credit The act provides […]
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Take Your Chemical Ag Credit
In 2008, Congress enacted a new agricultural chemical security credit that may apply to some farmers and will certainly apply to those farmers who have expanded their business into the fertilizer and farm chemicals operations. This credit allows you to take a 30% credit for expenses related to enhancing the security of a facility in […]
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Hog Odors Raise a Stink
For those people living in rural areas, the smells associated with hogs, cows, etc. can be a nuisance. Usually most people grin and bear it, however, there are many times when they try to do something about it. The High Plains Midwest Ag Journal recently reported on a civil trial filed in Kansas City regarding […]
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Do You Have Your Rip Cord
Our CPA firm deals with many newly formed businesses each year. When two or more people get together to form a business, it is almost like a boyfriend and girlfriend getting together for the first time. They are usually fairly giddy with excitement over the new venture and look forward to the business being there […]