February, 2009
-
Great way to test for moisture
On a recent episode of Agday, there was a small feature on a product from Reichhardt called a minibatt. This is a very small hand-held portable combine that allows the farmer to harvest a small amount of grain and get a very quick reading on moisture levels of the crop. I know growing on our farm, […]
-
Bonus depreciation extended to 2009
The recent Stimulus Tax Package includes an extension of bonus depreication from 2008 into all of 2009. This means that for all new equipment (including single purpose ag buildings) qualifies for 50% of the cost being deducted in 2009 with remainder being depreciated over the normal tax life of the equipment. For example, if a […]
-
A freebie from the IRS
There was a new law passed last year that allows all taxpayers that use the standard deduction to take an extra deduction of up to $1,000 for real estate taxes paid on a personal residence. This deduction is in addition to the standard deduction. This deduction applies to farmers who do not itemize their deductions. […]
-
The Old Way to Make Money – Earn It!
I saw a great post by Chuck Schwartau from the University of Minnesota Extension deparment. The post was related to the dairy industry, but is applies to all farming and any business. For the last twenty years or so, it seems that most people thought they could make easy money by borrowing more than they […]
-
March 1 is file your taxes time
Farmers are unique. The IRS allows them to pay their income taxes later than almost anybody else. Noramally all returns are due on April 15 of each year and taxpayers need to pay in their taxes by either having enough withholding taken out of their wages or paying 4 equal quarterly estimated tax payments in order to not […]
-
When Average is Great
Uncle Sam offers a tax advantage to farmers and fishermen that no other taxpayers receive. When your income is very high compared to previous years, the tax laws allow you to assume that you were able to average all of your farm income over a four year period. This can save you several thousand dollars […]
-
Farm Lending–Which Type Are You?
David Kohl, ag lending consulting, divides target farmers and ranchers for future agricultural lending into four categories and percentages: 10 percent approaching $600,000 in annual revenues and planning to grow this toward $1.5 million in revenue 30 percent that will be scaling down to a rural “lifestylers” or those commonly living on five to twenty […]
-
Stimulus Package May Benefit the Ag Industry
House Democrats proposed last week an $825 billion stimulus measure including $275 billion in tax breaks and $550 billion in spending that touches almost every area of the economy including agriculture. The bill included $245 million for the Farm Credit Service Agency to purchase a computer system to considered necessary to implement the 2008 Farm […]
-
Millennials−Are You Ready?
I was one of the last baby boomers (missed the 1950’s by 28 days) and all of my four boys will end up being known as the Millennial generation. Many of these will end up being your employees and the type of compensation and feedback that works for us does not work for them. Chris […]