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Farm Trends

  • Mexico to End Tariffs on Fruit and Other Ag Products

    There is an old saying that when politics gets involved, farming can suffer.  One of the prime examples of this was issue of allowing Mexican truckers to bring products into the US by truck which was allowed for several years.  However, politics got involved a few years ago and the US stopped this and Mexico […]

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  • Watch For The State Tax Grab!

    Most farmers enjoy certain state tax exemptions that are not always available to other businesses in that state.  For example, in my state of Washington, almost all businesses pay a state Business and Occupation (B&O) tax based upon gross sales.  As a CPA, our firm pays a 1.8% tax on all of our services performed in […]

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  • Check Your FUTA Wages

    I never thought I would write a post on FUTA (Federal Unemployment) taxes, but here I go.  The original FUTA tax rate was 6% with an up to 5.4% credit for taxes paid to your state.  Starting in 1976, Congress had tacked on a surtax of .2% for a gross FUTA rate of 6.2%.  This […]

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  • What’s Your RLU?

    A farm enterprise must be able to generate enough revenue and net income to support at least one farm family which I call a “living unit”.  A farm operation should calculate how much revenue the farm generates each year and divide that both by the number of full-time equivalent employees (FTE) and “living units”.  To […]

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  • China Companies Continue to Buy Up Farm Land

    The Wall Street Journal had an article yesterday on how Chinese companies are continuing to invest in South America especially in buying up farm land to feed their people.  Through the twelve month period ended May 31, 2011, the China’s investment in Latin America had hit $15.6 billion. During the last three years, more than […]

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  • Follow Me On Twitter

    Just a reminder that you can now follow me on Twitter.  I had set up my account last year, but with all of the changes with my accounting firm, I had not had a chance to take advantage of using Twitter for quick posts through out the day.  I will be using Twitter to update […]

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  • Golf Course Falls Victim to High Grain Prices

    The new owner of the Whittemore Golf Course in Algona, Iowa has plowed it under to put in a corn crop for this year.  This nine hole course was originally built in 1969.  The new buyer decided that it would make more money as a farm than as a golf course. This has caused some rift […]

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  • Supreme Court to Decide Tax Spat Between Circuit Courts

    The Supreme Court has decided to hear a case involving a dispute between the Ninth Circuit on one side and the Eighth and Tenth Circuit on the other side concerning the issue of who owes the tax on the capital gains arising from a Chapter 12 farm bankruptcy. In most normal bankruptcies, the capital gain […]

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  • Don’t Be A Hobby Farm

    Many of our readers will ask us questions about starting a farm, however, when discussing it with them, many of them are talking about a hobby farm and not a real farm.  For tax purposes, a hobby farm has some very unfavorable consequences to the farmer.  Net income is always reported, however, a net loss […]

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  • If Grain Markets Are Topping, Start Locking In Profits

    During 2008, grain markets were almost as high as they are now, however, many farmers were not able to take advantage of these prices either through already having their crop sold or through inaction by the farmers. I don’t know how many times I have heard a farmer in my office or out in the […]

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