Appeals Process for ERP AGI Issues
It appears that the FSA is allowing farmers who currently do not meet the more than 75% farm AGI definition to appeal the determination with the local FSA office. Senator Hoeven released a press release on this process last week.
We have not determined exactly how this process works. We have heard that you appeal it directly to the County Committee who then either pushes it up to the state level for review and then onto the federal office for further review or it skips the state office level review.
We are not sure which farmers are eligible for relief. Since the FSA issues their updated guidance directly on equipment gains last week, we doubt if this will qualify for any relief. We surmise the farmers who have negative overall AGI but have positive farm AGI may have a good chance of winning on appeals.
We would be very interested to hear of any successful appeals and what type of AGI issue was resolved favorably for the farmer. However, this may likely take a few months to get through the system.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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