Farm Industry Trends

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    January 29th, 2015


    ARC for Low Yields – PLC for High Yields

    Many farmers will not elect 100% ARC or PLC.  Even if ARC-CO will make a large 2014-crop corn payments, most will try elect some PLC on acres just in case substantially lower prices might occur in 2015-2018.  In those cases, the firm rule of thumb is to elect PLC on your highest yielding farms first, elect […]

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    January 28th, 2015


    Additional CBO Analysis

    Yesterday, we posted on the new baseline study just released by the Congressional Budget Office (CBO).  Today, I will add some additional analysis gleaned from the report: The CBO is projecting that many growers will sign up for ARC-IC and payments will range from about $350 to 707 million during the five-year life of the […]

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    January 27th, 2015


    How Accurate is CBO on PLC and ARC

    The Congressional Budget Office just released their updated baseline report for all farm programs.  This baseline is an update from last April’s baseline and although their estimate of farm PLC and ARC payments may be fairly accurate over the 10 years of their projections, I highly doubt the accuracy of their projections for the 2014 […]

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    January 25th, 2015


    Possible Maximum ARC-CO and PLC 2014 Payments

    The University of Illinois in their FarmDoc Daily report released estimated ARC and PLC payments by state last week.  For corn, the payments ranged from a low of zero for ARC-CO in multiple states (those with higher than average yields in 2014).  Some of the key corn-growing states with estimated ARC-CO payments of zero were Kansas and Missouri.  Each […]

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    January 23rd, 2015


    IRS Scammers Net $14 Million from 3,000 Victims

    The pervasive IRS impersonation phone scam has claimed nearly 3,000 victims who have collectively paid over $14 million, according to a new warning from the Treasury Inspector General for Tax Administration (TIGTA).  According to the TIGTA, they have received reports of around 290,000 cases due to this scam from taxpayers since October 2013. In the […]

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    January 20th, 2015


    2 Senators Work to Eliminate Capital Gains Tax on Chapter 12 Bankruptcies

    Senator Grassley (D-Iowa) and Senator Franken (D-Minn) proposed a bill today in the Senate to eliminate capital gains tax that a farmer may owe when selling property after entering a Chapter 12 bankruptcy.  Chapter 12 bankruptcy is designed to allow farmers to reorganize their farm operations and keep the farm in the family and operating.  […]

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    January 15th, 2015


    More Than Half of Dairy Producer’s Enroll in Margin Program

    The USDA just announced that more than 23,000 dairy producers enrolled in the new Dairy Margin Protection Program for 2015.  As an example, in the state of Wisconsin more than 55% of the producers signed up and 55% of those that signed up did so at some level of buy-up coverage.  The $4 level was […]

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    January 14th, 2015


    USDA Announces More Than $18 Million to Support Training and Development for Beginning Farmers and Ranchers

    The USDA announced on January 12, 2015 the availability of more than $18 million in funding to help educate, mentor and enhance the sustainability of the next generation of farmers. This support is available through the Beginning Farmer and Rancher Development Program (BFRDP), administered by USDA’s National Institute for Food and Agriculture (NIFA). The BFRDP […]

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    January 13th, 2015


    IRS Opens FATCA Data Exchange Service

    The Internal Revenue Service has introduced an International Data Exchange Service that financial institutions and tax authorities in other countries will use to report tax information under the Foreign Account Tax Compliance Act, or FATCA. Financial institutions and host country tax authorities will use IDES to securely send their information reports on financial accounts held […]

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    January 8th, 2015


    Should I File By March 1?

    Most farmers usually file their income tax return by March 1 of each year.  If a farmer files AND pays their tax in full by that date, they are not required to make any estimated taxes for the year.  If they do not file by March 1, then they are required to make one estimated […]

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