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What Will be The February Insurance Price
February sets the price level for crop insurance on Corn, Beans and some of the other major crops. Last year’s spring price was $5.68 for corn and $12.55 for beans. We have had 4 trading days for this month out of 20 total and so far the average corn price is $5.89 and the average […]
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Even Entertainment Weekly Thinks Farmers are Cool
Dodge ran a 2 minute commercial during the Super Bowl utilizing the Paul Harvey “On the 8th Day God created Farmers”. I thought it was one of the best commercials during the game and Entertainment Weekly thought the same thing. It was very well done and we just wanted to say how proud we are […]
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Hedging Versus Speculation
We got the following question from a reader today: “I was wondering how to handle the purchase of corn options on your tax return?” The answer is one of those “It depends” type answer. If the farmer is purchasing an option for speculation, i.e. he purchases a corn call option, then he falls under the […]
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Many States Are Delaying Farmer Filing Deadline
As discussed in a couple of other posts, the IRS has extended the farmer filing deadline from March 1, 2013 to April 15, 2013 for those farmers who “miss” the March 1 deadline. We are starting to see various states follow suit as follows: Indiana Iowa Minnesota Nebraska West Virginia Some states base their filing deadline […]
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The Board is Not What it Used to Be!
Today was the first day of the Top Producer Conference. The first session was very interesting. Dr. Tom Deans, author of Every Family’s Business gave a talk on how many farmers really should be looking at “selling” the farm instead of “gifting” the farm. Too many times, the gift of the farm ends up creating […]
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File Your Return After March 1 Not Before!
Even though the IRS granted relief for farmers to file their tax return by April 15 of this year, there is a “gotcha” in the details. If you file your return on or before March 1, 2013, you must also payyour tax on or before March 1. If you file on March 1 and then […]
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Top Producer Conference
Yesterday I attended the Tomorrow Top Producer conference in Chicago. The main Top Producer gets started today and runs through Friday. Some of the observations from yesterday are: Younger producers are very worried about the availability of land to farm. With cash rents rapidly increasing and land prices exploding, they worry about their ability to […]
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AMT Causes a Few More Capital Gains Tax Rates!
We had a reader send in the following question: “Do long term capital gains count in determining AMT? And thus potentially increasing 15(20) percent effective rate?” We wrote a post a couple of weeks ago about there being ten different long-term capital gains tax rates beginning in 2013. Well, we can probably at least two […]
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Why Imputed Interest Matters For 2013 (And Beyond)
Any time a farmer loans money to a corporation that they own (or vice versus), the income tax laws require these loans to bear interest. If the loans do not bear interest, then the law requires the farmer to calculate an “imputed” interest amount based upon the applicable federal rates published by the IRS each […]
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It May Pay to Fill Out Your Ag Census Online
Every five years the Department of Agriculture sends out a very detailed census form for farmers to prepare and send back. We have already discussed this form with several farmers and as usual it can be very hard to follow the paper form. We have found preparing the form online can save some time and […]
