Farm Operations

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    February 5th, 2016


    Lowest Spring Crop Insurance Price in Last 10 Years?

    February is the month for determining the final “spring” discovery price for crop insurance purposes.  This year is shaping up to the be the lowest insurance price for the last 10 years.  From 2007 to 2015, the lowest corn spring insurance price was $3.99 in 2014, $4.04 in 2009 and $4.06 in 2007.  Last year […]

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    January 26th, 2016


    What Gets a Step-Up

    I continue to get questions regarding how much of a step-up in cost basis farmland gets when someone passes away.  Again, as with most tax questions, it depends.  The key factor for determining the step-up is who owns the land.  Is it owned by the person who passed away or is it owned by an […]

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    January 21st, 2016


    Mr. Market Wants Its Excess Profits Back

    I have been meeting with several farmers over the last few days and we have been discussing how low crop prices will affect their bottom line profit.  Mr. Market has a history of allowing excess profits to be earned by farmers (think of the first and second world war, the Russian Grain trade of the […]

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    January 20th, 2016


    Top 10 Reasons You Might Need Accrual Accounting

    I spoke this morning in St. Louis at the Accounting Boot Camp on using accrual accounting for farm operations and why it is important.  To start off the talk, I came up with the Top 10 Reasons why you might need accrual accounting: 10. You think working capital has something to do with politicians in […]

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    January 14th, 2016


    Planted Vines and Trees Qualify for Bonus Depreciation

    It is not often that we post on orchards or vineyards, but one of the new provisions from the tax extenders bill is the ability for orchards and vineyards to deduct 50% of the cost of trees or vines in they year of planting instead of the year the plant is placed into service.  The […]

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    November 25th, 2015


    IRS Raises Tangible Property Expensing Threshold to $2,500

    Yesterday, in Notice 2015-82, the IRS raised the de minimis safe harbor threshold for deducting certain capital items from $500 to $2,500. This applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item for businesses without an applicable financial statement (audited financial statement). Keep in mind, […]

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    November 24th, 2015


    FAFSA Reporting Changes

    I get many phone calls during the year regarding the reporting of income tax data for FAFSA purposes in order for a child to get financial aid.  Many times these phones calls lead to heartburn for both the client and myself.  The parent wants to get the data into the college as soon as possible to pin […]

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    November 11th, 2015


    When Will We Know Section 179 Amount?

    We continue to have the question asked about what will Section 179 be for 2015 and when will we know.  Currently, a farmer is only allowed to deduct $25,000 under Section 179 and if the farmer spends more than $225,000 on equipment, then they are not allowed to deduct any Section 179. Both the House […]

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    November 10th, 2015


    Northwest Regional Cooperative Institute Day 1

    I (David Enquist) am attending the Northwest Regional Cooperative Institute annual meeting and education seminar today and tomorrow in Spokane, WA.  The topic of the event is Cooperatives of the Future: Economics, Scope and Size. Day one focused mainly on Megatrends in Agriculture, Generational Differences in Co-ops and Succession / Talent Management. Dr. David Kohl […]

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    November 10th, 2015


    Health Co-Ops are NOT Cooperatives

    Some of you may have read or heard about some of the struggling government-funded non-profit insurers (created out of the Affordable Care Act) that journalists continue to incorrectly refer to as “co-ops,” short for cooperatives, rather than using the uppercase acronym  CO-OP, which stands for Consumer Operated and Oriented Plans.  While some of these non-profit […]

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