May, 2011
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Retail Coffee Prices Up 38% in One Year
This week, Smuckers, the makers of Folgers and Dunkin Donuts retail coffee announced an 11% increase in the cost of their coffee. This comes on top of a 10% increase in February, a 9% increase in August of last year and a 4% increase in May of last year. If you apply all of the increases […]
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Don’t Be A Hobby Farm
Many of our readers will ask us questions about starting a farm, however, when discussing it with them, many of them are talking about a hobby farm and not a real farm. For tax purposes, a hobby farm has some very unfavorable consequences to the farmer. Net income is always reported, however, a net loss […]
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Are High Wheat Prices Contributing to Mideast Turmoil?
The Thursday edition of the Wall Street Journal had a front page article on how the rapid increase in wheat prices is contributing to the turmoil in the Mideast. Most of the Mideast countries consume a much higher percentage of wheat in their diet than any other countries in the world. For example, Americans consume […]
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Components May Qualify for 100% Bonus Depreciation
In a post a couple of days ago, I indicated that a new Ag building placed in service after September 8, 2010 but where the construction started before that date would not qualify for 100% bonus depreciation, but would qualify for 50% bonus depreciation. There is one exception to this rule that may help farmers […]
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Are You Ready For The Whipsaw?
With the turmoil in the world commodity markets and the concern about the flooding and weather conditions in the US, farmers can expect that their commodity prices are going to whipsaw up and down very rapidly over the next several months. A key to not getting personally whipsawed is to have a written plan in […]
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Watch Your Date of New Construction
The tax law passes late last year had a very favorable tax treatment for the construction of new farm buildings. In that law for any new farm buildings placed in service after September 8, 2010 and before January 1, 2012, a farmer would be able to write off 100% of this new construction cost in […]
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Motorcycle Ride to LA
Just a personal note to let you know that a friend and I are riding our motorcycles to Los Angeles from Yakima for my second’s son college education. Two down and two to go. I will be gone from today until next Tuesday and may not do any postings between now and then.
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If Grain Markets Are Topping, Start Locking In Profits
During 2008, grain markets were almost as high as they are now, however, many farmers were not able to take advantage of these prices either through already having their crop sold or through inaction by the farmers. I don’t know how many times I have heard a farmer in my office or out in the […]