Agribusiness BlogFarm CPA Today

Farm Operations

  • Girl-Feeding-Calf-in-Barn

    USDA to Buy 11 Million Pounds of Cheese and Extend Dairy MPP Deadline

    The USDA announced yesterday that it will buy 11 million pounds of cheese for approximately $20 million to help dairy farmers combat a cheese glut. The 2014 Farm Bill had authorized the USDA to purchase certain dairy products when margins got low. Currently, the margins are not quite to that level, however, the USDA has certain flexibility regarding what they can do to help.

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  • Advisor-With-Seniors-Table

    Some Examples of New Proposed IRS Rules on Valuations

    Last week we did a post on the new IRS Proposed Regulations that would limit minority discounts on transfers of family interest. This post shows a few examples of how this might work.

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  • Peasant and business man talking on wheat field during harvesting

    Corporate Grain Gifts Better Than Cash

    Instead of giving cash from your C corporation to a charity, consider gifting grain instead. This can save you some taxes and most charities in the farm states are set up for this process.

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  • Wind Machine on Farm

    IRS May Be Backing Off on Assessing Self-Employment Tax in Some Cases

    The IRS has tried to assess self-employment tax on receipt of Conservation Reserve Program (CRP) payments even if the taxpayer was not a farmer. Roger McEowen at his Agricultural Law and Taxation Blog reviews a recent IRS audit where they did not assess SE tax on CRP payments for a non-farmer.

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  • Farmer-in-Field

    Will Excess Loss Rules Apply to Your CCC Transactions?

    Last week, we did a post on how electing to receive a loan deficiency payment (LDP) may negatively affect the amount of ARC or PLC payments that you will receive in October 2017 for the 2016 crop. One option to get around these limits is to place a loan on your crop (most likely only hard red wheat for the 2016 crop year, however, corn may get close in certain parts of the country) and then pay it off with a commodity certificate. The net gain to the farmer under this strategy will not reduce the amount of ARC or PLC payment in 2017 (assuming the farmer will max out on these payments).

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  • Businessman-Thinking-At-Laptop

    IRS Continues to Have Issues With Payroll Tax Deposit Due Dates

    For some reason the IRS can not seem to get their computers to understand that the United States actually follows certain holidays during the year. All payroll tax deposits have certain due dates and if these due dates fall on a holiday, the due date automatically gets rolled forward to the next business day. However, the IRS computers sometimes gets confused and still thinks the due date is on the holiday and sends out penalty letters.

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  • Milking-Parlor-Worker

    Dairy Margin Protection Program Finally Makes Payments to More Producers

    The 2014 Farm Bill created a new program for dairy producers to lock in certain margins for their operations. The margin was calculated as the difference between the National All Milk price and a feed factor based upon the price of corn, soybean meal and alfalfa hay. Producers could lock in margins between $4 per cwt (no premium would be owed) up to $8 per cwt in 50 cent increments. The vast majority of dairy producers elected the $4 per cwt coverage level for both 2014-2016. They could elect to cover between 25% and 90% of their margin.

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  • Woman using loptop on patio

    AICPA Farm Tax Webinar Rebroadcast

    For those of you that were unable to attend the AICPA Ag Conference in Denver this year, there is a rebroadcast of the Agricultural Income and Estate tax seminar that Roger McEowen and myself presented on day one.

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  • Advisor-With-Seniors-Table

    Details Matter!

    As stress builds in the farm sector, care must be taken if the farmer is considering filing for Chapter 12 bankruptcy. This type of bankruptcy was specifically put into law to help farmers reorganize their debts and continue farming.

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  • Aerial-Pine-Trees

    Farmland Investment Up North

    As a business, owning your farmland may not be the best solution. As long as you control the asset, it may make more sense for someone else to own it.

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