Farm Operations

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    March 1st, 2015


    What is Your Current RP Guarantee

    Last Friday was the last day of the discovery price period for corn, soybeans, spring wheat and some other crops.  We now know that the corn price should be $4.15 (2014 – $4.62) and soybean price should be $9.73 (2014 – $11.36).  Spring wheat price should be $5.85 (2014 – $6.51).  These lower guarantee prices […]

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    February 27th, 2015


    ARC-CO Reports Are Net Not Gross

    A reader sent an email to us indicating our reports of ARC-CO payments on corn for his county in Iowa were not correct.  This is a case where both of us are correct.  Our reports that we issued this week showed the estimated ARC-CO payments for each county on a net basis.  He was looking […]

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    February 26th, 2015


    Let’s Not Forget Wheat, Barley and Sorghum!

    Earlier this week we had posted reports on various estimated ARC-CO payments assuming various MYA prices for Corn and Soybeans.  In this post, we are releasing reports for ARC-CO for wheat, barley and sorghum for all of the NASS counties.  Again, make sure to understand that these are simply calculations assuming NASS yields will equal final FSA […]

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    February 24th, 2015


    NASS Yields To FSA Yields

    We had someone note that the yields per NASS do not tie out to the final yields per FSA.  I had taken a look at this a while back and noted that corn yields were usually within a bushel or two, but decided to review previous year’s corn yields and see how much of a […]

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    February 23rd, 2015


    Soybean Estimated ARC-CO Payments

    Yesterday, we released a report on the estimated corn ARC-CO net payments per acre based upon a corn MYA price ranging from $3.50 to $4.00.  Today, we are releasing the estimated soybean ARC-CO net payments based upon soybean MYA prices ranging from $9.25 to $10.50 in 25 cent increments.  I was surprised how many counties […]

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    February 22nd, 2015


    Estimate of 2014 Corn ARC-CO Payments for $3.50-$4.00 Corn

    As in our previous post, I spent a lot of my day on Friday taking NASS data released last week and coming up with my estimates of corn ARC-CO payments for the 2014 crop year.  Several readers have already asked me for data on their county and since I finally made it home from Iowa […]

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    February 20th, 2015


    NASS County Data Is Out

    NASS just released data yesterday on corn and soybean (along with some other crops) yields by county for 2014.  NASS presents yield per harvested acre in their report, however, yield per planted acre is the requirement for ARC-CO payment calculations.  Therefore, you cannot simply take the yield listed per NASS and use that in your calculations.  In […]

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    February 18th, 2015


    Here We Go Again

    Yet again, we have additional guidance on health insurance arrangements where employers reimburse employees for individual health insurance policies or pay individual policy premiums directly.  These types of arrangements, called employer payment plans, are disallowed by the ACA and are subject to steep excise taxes.  In Notice 2015-17, the IRS made some transitional relief available […]

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    February 16th, 2015


    You Don’t Need to File Those Form 3115s After All

    The IRS had issued new Regulations more than a year ago dealing with repairs, materials and supplies and related capitalization of asset purchases.  In my opinion the new Regulations were actually fairly taxpayer friendly, however, there was much discussion by many firms that all taxpayers would be required to file a Form 3115 (a form […]

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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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