Farm Leadership
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Price Loss Coverage – What is it?
Yesterday, we posted on Agricultural Risk Coverage (ARC). Today we will go over the rules on Price Loss Coverage (PLC). ARC is based upon both a yield and price component, whereas, PCL is based strictly on price. The USDA will determine the average crop price during each marketing year and compare that to the “base” price […]
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How To Make an Extra $100 Per Acre!
I spent part of today reviewing the new Farm Bill that was signed by the House today and most likely law by next week. I spent most of the time reviewing the Agricultural Risk Coverage (ARC) which is one option that farmers can sign up for. The other option is the Price Loss Coverage which […]
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Top Producer – Day 1
Yesterday I spent most of the day in Coldwater, Michigan and I can tell you that the first four letters of that name was very appropriate. It was about 15 degrees below zero when I got up and I think it peaked out at zero later in the day. The event I attended was the […]
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Dairy Farms Will Have “Margin Insurance” in New Farm Bill
One of the most contentious parts of the wrangling over the new farm bill (not yet passed, but out of conference yesterday) centered around support for dairy farmers. The National Milk Producer’s Federation had lobbied for a “supply management” provision, however, House Speaker Boehner had argued that this was simply a “Soviet-style” economic planning. In […]
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Not Too Late to Make Portability Election!
The IRS just released Revenue Procedure 2014-018 that now allows an executor of an estate to make a late portability election. Portability allows the unused estate exemption of the first spouse to pass away to be “ported” over to the surviving spouse. For example, if Farmer Bean passes away in 2013 with a total estate […]
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You Must Start IRAs Draws at Age 70 1/2!
We had a reader ask the following questions: “As I understand the requirement for the IRA withdrawal at age 701/2. If the person is still working at 70 1/2 then it is not necessary to draw from your IRA. Is this true? Another question can a farmer for 2013 expense the full cost of a […]
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If Corn Drops a $1, How Much Does Farmland Prices Drop?
AgriBank, which is owned by 17 affiliated Farm Credit Associations primarily located in corn belt states issued a 14 page analysis of farmland values and the effect on these values if commodity prices decrease or interest rates rise. Their analysis included regression studies and here are some of the conclusions: If net farm income or […]
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Interest Under USDA Prompt Payment Act Mean Only One Year!
We were informed of a farmer that had a several year delay in receiving his 2010-1012 FSA direct payments. Many farmers naturally assume that if the USDA is late in making payments to a farmer, interest will be paid from the original due date until the final payment date. This is true, however, only if that […]
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Cash Does Not Equal Gain
We got the following question from a reader: “I bought 3 farms in recent years. Is there a way to sell one or part of one and pay the other 2 off without paying tax on that money?” I can give a general answer to this question, but without having the actual facts of each […]
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Hot Goods
At the recent Fruit Conference we attended put on by the NSAC, Dustin Klinger, a Partner with Miller Nash, touched on a recent court case from Oregon during his presentation regarding a blueberry farm, the Department of Labor and a “hot goods” provision of the Fair Labor Standards Act and there have been recent developments […]