Farm Industry Trends

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    February 5th, 2016


    Lowest Spring Crop Insurance Price in Last 10 Years?

    February is the month for determining the final “spring” discovery price for crop insurance purposes.  This year is shaping up to the be the lowest insurance price for the last 10 years.  From 2007 to 2015, the lowest corn spring insurance price was $3.99 in 2014, $4.04 in 2009 and $4.06 in 2007.  Last year […]

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    February 4th, 2016


    Does Cottonseed Oil Qualify for Other Oilseed Treatment Under 2014 Farm Bill

    The USDA just announced that they will not include cottonseed as an oilseed.  The cotton industry and other farm groups have been lobbying USDA to include this as an other oilseed and likely then allow cotton growers to elect PLC on these acres and receive a payment at least for the next few years assuming […]

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    January 31st, 2016


    Pre-1977 Purchases May Get 100% Step-up or Not!

    We had a reader respond to our last post with the following: “One additional thought on the “Farmer Brown purchased 40 years ago” example.  If it was a pre-1977 joint interest, his wife could get a 100% basis step up, if the funds to purchase the property and pay for the mortgage came solely from […]

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    January 26th, 2016


    What Gets a Step-Up

    I continue to get questions regarding how much of a step-up in cost basis farmland gets when someone passes away.  Again, as with most tax questions, it depends.  The key factor for determining the step-up is who owns the land.  Is it owned by the person who passed away or is it owned by an […]

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    January 24th, 2016


    Continued Headwinds for Ag

    The Federal Reserve Bank of Kansas City provides several publications throughout the year on trends in the farming sector for their region (Kansas, Missouri, Nebraska, Oklahoma, Wyoming, Colorado and New Mexico).  In an article titled “Supply and Demand Fundamentals Weighing on Ag Economy”, it does a good job of outlining the headwinds that Ag still […]

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    January 21st, 2016


    Mr. Market Wants Its Excess Profits Back

    I have been meeting with several farmers over the last few days and we have been discussing how low crop prices will affect their bottom line profit.  Mr. Market has a history of allowing excess profits to be earned by farmers (think of the first and second world war, the Russian Grain trade of the […]

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    January 20th, 2016


    Top 10 Reasons You Might Need Accrual Accounting

    I spoke this morning in St. Louis at the Accounting Boot Camp on using accrual accounting for farm operations and why it is important.  To start off the talk, I came up with the Top 10 Reasons why you might need accrual accounting: 10. You think working capital has something to do with politicians in […]

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    January 19th, 2016


    Many Specialty Crops See Drop In Prices Too

    It is not just corn, soybeans and wheat that are seeing slumps in prices.  Many specialty crops such as almonds are also seeing a drop in price due to an increase in the dollar and reduced demand for the product. A recent article by Valley Public Radio spotlight the issues that almond growers are facing […]

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    January 14th, 2016


    Planted Vines and Trees Qualify for Bonus Depreciation

    It is not often that we post on orchards or vineyards, but one of the new provisions from the tax extenders bill is the ability for orchards and vineyards to deduct 50% of the cost of trees or vines in they year of planting instead of the year the plant is placed into service.  The […]

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    January 11th, 2016


    Relief for Older Farmers with IRAs

    The Tax Extenders bill made permanent the ability for older taxpayers to contribute up to $100,000 of their IRA holdings directly to a charity.  For many older farmers, this option can save them income taxes.  There are several situations where this may help a farmer.  We will review three of the options to see how […]

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