Farm Operations

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    July 22nd, 2016


    How to Pay Your Children

    The Tax Court released a case earlier this week (Embroidery Express LLC TC Memo 2016-136) that provides very good advice on how to pay your children (or how not to pay them).  As we have previously indicated, one of the best deductions for farmers is to pay their children under age 18 (for sole proprietors […]

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    July 18th, 2016


    Why Farming Is Great

    Last week, my wife and I attended the annual Farm Financial Standards Council meeting in beautiful Ranchester, Wyoming (just north of Sheridan).  The meeting was hosted by the Padlock Ranch and they did a great job of providing a meeting site and dinner and lunch.  I even got to rope a calf (it was a […]

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    July 14th, 2016


    Managerial Accounting Performance Standards

    One of sessions after lunch dealt with managerial accounting for a large agricultural operation (almonds, cattle, potatoes, etc.). One item that was brought up is that any accounting system for any farming operation no matter the size should meet certain performance standards as follows: Timeliness – perfect financial information in an untimely manner does not […]

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    July 14th, 2016


    The Farm Financial Standards Council Annual Meeting

    The annual Farm Financial Standards Council meeting is being held this week in beautiful Ranchester Wyoming at the Padlock Ranch. The ranch contains about 420,000 acres and has three main sections located primarily in Southeastern Montana with part of it in Northeastern Wyoming just north of Sheridan. Wednesday afteroon the council had their committee meetings […]

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    July 13th, 2016


    Do You Know Your Breakeven Point?

    AgStar Financial Services recently posted an article asking Where’s Your Break-Even?  We work with a large number of farmers with a wide range of farm sizes and it is still surprising to me how many farmers would not be able to answer this question or other questions regarding their finances.  It is still not that […]

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    July 10th, 2016


    Wheat Growers to get 61 Cents From 2015 PLC

    Art Barnaby of Kansas State University released his latest information on the MYA prices for the major crops for the 2015/16 marketing year.  The corn and soybeans marketing year ends August 31, however, wheat (and other cereal grains) ends May 31. For the 2015 harvested wheat crop, the final MYA price is determined for the […]

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    July 6th, 2016


    Working Capital Trends Still Positive But Turning Negative

    FarmDoc Daily from the University of Illinois just posted an article on Kansas farmer’s working capital trends.  One ratio that we financial advisors look at for farmers is the amount of working capital divided by annual farm production.  Working capital is composed of your current assets (cash, receivables, inventories and prepaid expenses) less your current […]

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    June 28th, 2016


    What? When? Who?

    I am speaking at an event in Nevada, Iowa today on succession planning along with Jolene Brown.  Jolene and her husband farm in SE Iowa but she also does seminars on succession planning for farmers and small businesses all over the country.  One of her first slides had the audience ask the following questions: What? – […]

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    June 24th, 2016


    FICA Wage Base Likely to be $126,000 in 2017

    The Social Security Administration’s Office of the Chief Actuary has projected, based on two out of three of its methods of forecasting, that the 2017 FICA wage base will increase from $118,500 in 2016 to $126,000 in 2017.  The current wage base subjects employee’s to maximum FICA tax of $7,328.40.  If the new base goes […]

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    June 23rd, 2016


    Help – I Forgot to Take Depreciation

    Many times we will be reviewing a farmer’s tax records and notice that the farmer forgot to take depreciation on an asset they placed in service several years ago.  If they sell the asset, the Tax Code may force them to pretend that they took depreciation on the asset and report gain even though they […]

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