June, 2011
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Report From The Heartland
I have spent most of the time since Saturday in Kansas City, Minneapolis and Fargo. I have seen a lot of water, both in overflowing rivers and standing in the fields. Our 200+ acres of corn north of Kansas City looks great but my farm partner will most likely lose 400 or mores acres due […]
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IRS Raises Mileage Deduction by About 8%
Effective July 1, 2011, the allowed mileage deduction and reimbursement rate is increased from 51 cents per mile to 55.5 cents. Don’t ask me why the IRS uses half cents for these rates, but they do. This means you can use 51 cents for your miles incurred by June 30 and the new rate after […]
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Ethanol Industry Will Still Be Vibrant Without Tax Credits
Todd Becker, CEO of Omaha-based ethanol producer Green Plains, says ethanol “is still a great fuel” according to an article in the Omaha World-Herald. Ethanol allows for a reduction in demand for foreign oil and is a cleaner burning fuel. At current production rates, ethanol provides more motor fuel for the United States than it […]
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Question on What is a Hedge?
We had a reader ask the following question: “On taxing options, you state that hedges apply to crops that you raise or feed. However, you say if you raise wheat but have no livestock an option would not be a hedge. I am confused. “ The tax definition of hedging is when a farmer has […]
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China Companies Continue to Buy Up Farm Land
The Wall Street Journal had an article yesterday on how Chinese companies are continuing to invest in South America especially in buying up farm land to feed their people. Through the twelve month period ended May 31, 2011, the China’s investment in Latin America had hit $15.6 billion. During the last three years, more than […]
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Women Own 47% of Iowa Farmland
I noticed a post on the Iowa Farm Union that indicated 47% of the farm land in Iowa is owned by women. I think this trend will continue and there may be a good chance that this percentage may be in excess of 50% at some point in the near future. Women appear to express a […]
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Follow Me On Twitter
Just a reminder that you can now follow me on Twitter. I had set up my account last year, but with all of the changes with my accounting firm, I had not had a chance to take advantage of using Twitter for quick posts through out the day. I will be using Twitter to update […]
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Golf Course Falls Victim to High Grain Prices
The new owner of the Whittemore Golf Course in Algona, Iowa has plowed it under to put in a corn crop for this year. This nine hole course was originally built in 1969. The new buyer decided that it would make more money as a farm than as a golf course. This has caused some rift […]
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Supreme Court to Decide Tax Spat Between Circuit Courts
The Supreme Court has decided to hear a case involving a dispute between the Ninth Circuit on one side and the Eighth and Tenth Circuit on the other side concerning the issue of who owes the tax on the capital gains arising from a Chapter 12 farm bankruptcy. In most normal bankruptcies, the capital gain […]
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When Are My Agricultural Options Taxed?
We had a reader ask the following question: “I am looking at options to put floor prices in for my corn and soybeans. I have a few questions on the accounting for income taxes. Is the cost of options an expense for income tax the year you buy them? If you sell the option the […]