Agribusiness Blog

Agribusiness Blog

Farm CPA Today
  • The Road From Good To Great

        As a CPA, I review a lot of financial statements.  As part of this review, I try to determine the ratios that separate the business from other businesses in the same industry.  Sometimes these ratios are positive and sometimes they are negative.  For comparing ratios for farmers, a great site is the Farm […]

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  • Your Time is Worth Something

    As a CPA, I get asked many times by small business owners what their business is worth.  As part of calculating that value we usually work up what the net bottom line earnings of the business is.  To detemine that, we take the profit and loss of the company and make certain adjustments.  Normally, we […]

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  • For New Farmers (or Old Ones)

    The people behind Successful Farming have developed a network for new farmers called Farmers for the Future.  They have had at least one conference and Loren Kruse, Editor-in-Chief of Successful Farming recapped the key ideas from the last conference. This recap had many good ideas for new farmers, but I think almost all of the […]

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  • The Evolution of the U.S. Corn Ethanol Industry

    In a recent article in the Regional Economic Development publication of the Federal Reserve of St. Louis, the three primary phases of the U. S. Corn Ethanol industry were documented. These primary phases are: Birth – the events surrounding the oil shocks of the 1970’s from the OPEC price increases Development – The decline in […]

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  • Farmland Values Drop for the Quarter

    The Federal Reserve Bank of Chicago reported that for their district (Illinois, Indiana, Iowa, Michigan and Wisconsin) farm land values dropped 6% from the previous quarter (the largest drop for a quarter since 1985).  Also, the year-over-year increase in farmland values was up only 2% for the first quarter of 2009.  The drop ranged from […]

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  • Farm Landlords – What’s my tax rate

    If you are a farm landlord, you can be subject to several income tax rates and rules.  In general, you will either file your income on Schedule E, Schedule F or Form 4835.  Which onewill depend on whether you materially participate in the farm operation – in other words, the extent to which the landlord is […]

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  • World SuperBike Races

    (Warning – this post does not have anything on farming) My wife and I attended the World SuperBike races in Tooele, Utah this weekend.  I currently ride a BMW K 1200 S similar to the photo posted here.  I grew up riding small dirt bikes and had not been on a sports bike for about […]

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  • In-Kind Wages Can Be Better Than Cash

    One of the great options open to farmers is to pay their employees in-kind wages.  In-kind wages are the payments of the crops that a farmer grows.  For example, a farmer could pay their employees either cash wages of $10,000 or 1,000 bushels of soybeans worth $10,000.  The reason that a farmer would want to […]

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  • Some Income Tax Goodies

    The American Recovery and Reinvestment Act of 2009 delivered several tax goodies for farmers and their families.  Here are some of the highlights: 1.  Higher Education Credits – You can now have a maximum credit of $2,500 for higher education costs and this applies for the first four years of school instead of the old […]

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  • Credit Squeeze is Hitting Farmers Now

    It seemed for several months that the credit squeeze was passing farmers by.  However, lately I have ready several acticles about the credit squeeze hitting farms and farmers now.  Frontier Bank in Colorado specialized in loaning to farmers and it went under a couple of months back.  Most of these farmers using the bank were […]

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