FFSC – Day 2 (Session Six)
Phyllis Parks, a CPA with Daughhetee & Parks Management Consulting gave a presentation on understanding our competition south of the Equator.
Phyllis had taken a trip to South America in December. The state income tax rate is 18%. The employer rate for social security is 27% and the employee pays about 3%. Brazil seems to have a much higher concentration of foreign investment funds acquring and managing farm land in that country than what we have in the US.
Brazil is still a country of the rich and poor in the rural areas. The middle class still have not been developed in these areas. Most cooking and eating done in rural areas are done outside and the flies are thick. Most of the cooking is done using an open wood burning stove. For every 1,000 hectares of scrub land developed into farmland, the farmer is required to leave 25 acres in its natural state.
Most of their soybean seed is treated by them manually before planting. Machinery is very similar to US machinery.
Railroads are being built by private companies to help develop the infrastructure to get the beans to the ocean. Many times the cost of getting the beans to the port is higher than the cost of production.
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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