Farm Operations

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    April 27th, 2016


    Pooling is Back!

    Senator Backus a few years ago proposed replacing the current tax depreciation system with a pooling system.  Under that system, personal property purchases and sales would be “pooled” together and the net remaining number would be multiplied by a percentage for that year to arrive at your net depreciation deduction.  If the net number was […]

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    April 18th, 2016


    Limited Means Limited!

    Many farm families have formed family limited partnerships or family limited liability entities over the last several years.  These entities are usually formed to help with estate and succession planning.  However, they can sometimes lead to disputes as one farm family in South Dakota found out. In 2002, the Gibson family formed a family limited […]

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    March 10th, 2016


    Two Opportunities for Farm and Estate Tax Education

    Clifton Larson Allen is pleased to offer two seminars this summer for farmers, CPAs, attorneys and anyone else who is interested in a two-day seminar on farm and estate taxation.  Roger McEowen and myself will be the presenters at the seminars. The first seminar will be held Thursday and Friday June 9 and 10 in Cullowhee, North […]

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    March 3rd, 2016


    Final FSA Yields More Likely to be Under NASS Yields?

    There is a lot of chatter regarding the lack of ARC-CO payments for the 2014 crop year due to yields coming in higher than what farmers might have expected for their county.  When we were doing Farm Bill analysis about two years ago, we had taken a look at how final FSA yields compared to […]

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    March 2nd, 2016


    Crop Insurance Premiums Likely Lower This Year

    The University of Illinois in their FarmDoc Daily just released an update on where crop insurance premiums may range for the 2016 crop year.  A small blessing from low prices and low volatility is that premiums will likely be lower than in prior years (I think most farmers would rather pay higher premiums with higher […]

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    February 24th, 2016


    2015 Estimated ARC-CO Corn and Soybean Payment Amounts

    Farm Doc Daily put out by the University of Illinois just posted an article on the estimated 2015 ARC-CO corn and soybean payments.  Maps were provided showing an estimate of the payment by county and these maps are based upon the NASS yields that were released last week and using the current MYA price estimates […]

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    February 13th, 2016


    Can You Defer ARC/PLC Payments?

    I continue to get questions regarding whether you are allowed to defer 2014 ARC / PLC payments received in 2015 to 2016.  The confusion relates to the misconception that these payments qualify as crop insurance proceeds.  These payments are agricultural program payments.  Crop insurance proceeds related to yield losses are allowed to be deferred one […]

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    February 12th, 2016


    How to Exit Ag Without Paying a Monster Tax Bill Webinar

    I was talking with an older farm yesterday and I asked him when he was thinking about retirement and he said “I wish I had done it a couple of years ago.”.  There are many farmers in the same shoes that would like to retire now, but are worried about the large tax bill that […]

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    February 11th, 2016


    Some Crops See More Premiums Paid Than Claims

    Crop Insurance continues to come under attack from certain members of Congress.  They will have less ammunition based upon claims for 2015 crops. Through February 8, 2016, the RMA has paid out total claims of about $5.482 billion.  Total premiums assessed to farmers were about $9.714 billion.  This results in a loss ratio of .56.  […]

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    February 10th, 2016


    We Knew It Was Coming!

    The passage of Obama Care created the 3.8% net investment income tax on all unearned income such as interest, dividends, rents, passive income, etc.  This extra tax only applies if your income is over a certain threshold ($200,000 single and $250,000 for married couples).  This tax does not apply to earned income of partnerships and […]

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