← FarmCPA Home

Good News for Blackberry, Raspberry and Papaya Farmers

By: | Trackback URL | 1 Comment

February 20th, 2013

For farmers who raise certain crops with a longer pre-productive life (over two years) such as apples, oranges, and other similar plants, one of the tax rules under Section 263A require all of the costs associated with planting and growing this crop until it reaches economic production to be capitalized and then depreciated over ten years.  The IRS has a list of  these plants which they periodically update.

The IRS just released Revenue Notice 2013-18 removing blackberries, raspberries and papayas from these rules.  This means cash basis farmers will now be able to deduct normal growing costs associated with these plants from the time of planting forward.  Hard asset costs such as irrigation systems, wells, etc. will still be capitalized and depreciated over their normal life.

Revenue Procedure 2013-20 provides guidance on the timing and procedures to follow in making this change.  This should be welcome news for those farmers since accounting and accumulating these costs can provide heartburn to farmers and their accountants.

Paul Neiffer, CPA

Paul Neiffer

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 partner with CliftonLarsonAllen in Yakima, 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. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation.

More Posts - Website

Follow Me:
Twitter

← FarmCPA Home

1 Comment

  • February 21, 2013 at 7:50 am

    R Andrew Ohge

    Thanks, Paul, for this important update. It IS good news for many Small Farmers working to keep food variety and quality in our markets. Who would have guessed the IRS would lead the charge. I shared this with some groups on Facebook, making sure there was a link back here and you received proper credit.

    Thanks, again,
    Ric

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to this blog by:

Previous Posts

Events

View upcoming speaking engagements and other networking events for Paul Neiffer and CliftonLarsonAllen’s agribusiness team.

See All

  • Twitter Feed

    When "bullish" corn reports lead to flat closes what is Mr. Market telling you. Be careful. 1 week ago

    2010 spring corn price was $3.99. Only four years ago. 2 weeks ago

    Two good days to lock in decent prices on corn and beans. Did you take advantage of the opportunity 2 weeks ago

    Very little change on corn intentions in key corn belt state. Almost all reductions in fringe states such as ND down 1 million acre 3 weeks ago

    North Dakota up 1 million Minnesota up 700k and Nebraska up 600k represent almost half of the 5 million increase in bean acres 3 weeks ago

    Just spoke for 45 minutes on new farm bill to a group of 100 Minnesota and Wisconsin Co-op board members. No one fell asleep. 3 weeks ago

    Hard to beat spring time in the Pacific Northwest. 4 weeks ago

    Kansas City can be windy this time of year. Just got done taping with a farm family. Check it out on #agday next Friday 1 month ago

    I think spring has sprung in our area. 1 month ago

    April hogs 116 limit up! Can they hit 120 1 month ago