Farm Operations

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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 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 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 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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    January 6th, 2015


    Accounting Boot Camp

    Today, the Farm Financial Standards Council is doing an accounting boot camp in St. Louis for farmers who want to get additional understanding of how to use accrual accounting in their farm operations.  Accrual accounting does a much better job of representing your actual farm operation and in most cases even if you do not […]

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    December 29th, 2014


    Is California Egg Law the Wave of the Future for Farming?

    A recent Business Week article highlighted the current California law regarding the amount of area that chickens are required to have in order for producers to sell eggs into California.  The law was passed a couple of years back requiring at least 116 squares inches of space for each laying hen which was almost a […]

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    December 21st, 2014


    Will Dairy Margin Protection Make Payments in 2015

    Friday, December 19, 2014 was the last day to sign up for the new Dairy Margin Protection Program which insures coverage between $4 and $8 of margin.  This margin is based upon the difference between the US All Milk Price and Feed Costs based upon corn, soybean meal and alfalfa hay.  Earlier in the year, […]

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    December 11th, 2014


    IRS Announces 2015 Standard Mileage Rates

    The IRS has announced the 2015 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical and moving purposes.  The 2015 rates are: 57.5 cents per mile for business miles driven, up from 56 cents in 2014.  22 cents of this amount is considered depreciation for basis reduction […]

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    December 4th, 2014


    House Passes HR 5771 Tax Extender Bill

    The House of Representatives voted last night to approve a one-year retroactive extension of most the tax extender provisions by a vote of 378-46.  The bill now heads to the Senate where indications are it will be approved. Among the tax extenders of particular interest for agribusiness that would be renewed through the end of […]

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    December 2nd, 2014


    “Hot Goods” lawsuits update

    We have posted about the recent hot goods court case from Oregon over the last year, which can be found here and here.  There have been a couple of updates we wanted to share. As we noted in the earlier posts, the U.S. Department of Labor claimed that Pan-American Berry Growers and B&G Ditchen paid […]

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