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Taxable is Taxable -Whether a 1099 or not!
I got this question from one of our readers: “Are rebate checks that are received through a growers rewards program from Seed Company for the purchase of seeds taxable as income? I do believe it is but the wholesaler is saying it isn’t because you don’t get a 1099! ” I tend to get several […]
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ARC/PLC Election Made by Current Producer Not Owner
The FSA just released on the Regulations on the implementation of ARC and PLC and I have not yet had time to read all of the regulations, but one of the more important features is the elections that need to be made by “current” owners and “current” producers. The assumption was that all owners and producers […]
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Estimated Acre Payments for 2013 Crop Year
The old farm bill provided an option for producers called ACRE (Average Crop Revenue Election). The option, at that time, was a little bit complicated and required a reduction in other payments to participate. However, the payment amounts per acre were very substantial in certain years for various crops. FarmDOC Daily just issued a report […]
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IRS Offers Tax Relief to Drought-Stricken Farmers and Ranchers
The Internal Revenue Service is providing more time to farmers and ranchers in 30 drought-stricken states to defer taxes on any gains from forced sales of livestock. The IRS is providing this relief to any farm located in a county, parish, city, borough, census area or district, listed as suffering exceptional, extreme or severe drought […]
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Operating Farm Loan Volume Up in 2nd Quarter
The Chicago Federal Reserve issues a quarterly Ag Letter that recaps the major financial changes occurring in the states that it serves. The states comprise the 2 largest corn states (Iowa and Illinois) plus Indiana, Michigan and Wisconsin. Here are some of the major themes from their latest letter: Farmland values for the second quarter […]
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Key Dates for Farm Programs
The FSA has posted on their website the updated key dates for ARC and PLC sign up as follows: The reallocation of base acres and updating of payment yields (for PLC) started yesterday (September 29, 2014) and will extend until February 27, 2015. Although the option to update payment yields is strictly for PLC election, […]
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CMS Update on Consumers who have Data Matching Issues
Did you sign up for insurance through the Affordable Care Act? If so, you might be in for an unpleasant surprise. The Internal Revenue Service announced it is using tax returns to verify the incomes people claimed when they signed up for exchange-based health insurance. If you didn’t input the right amount, you may owe […]
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Another Strike Against PLC
One of the arguments for using PLC instead of ARC is that PLC has unlimited payments (until you hit the overall payment limit of $125,000 per individual). However, one of the drawbacks to using PLC is your payment yield will not likely reflect your actual yields for 2014-2018. The payment yield for PLC purposes is […]
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68 Days and Counting
I am a member of the Emerald Club through National Car Rental. It appears that so far this year I have been in a rental car with that company for 68 days. As a direct result of that (and other related days away from home) my wife has talked me into taking her on a […]
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Clarification on September 26 Date
In my post yesterday, I indicated that you need to update your farm structure by next Friday September 26, 2014 to ensure that your ARC or PLC decision for this year would be the one you wanted, not necessarily the one you got stuck with. We have gotten a few questions on this and after […]
