by Tiverton 

As April 15 approaches, it’s time to make sure you’re tax ready with accurate records and necessary documentation.

Consult this list to make sure your affairs are squared away:

  • All farm-related receipts are accounted for (equipment, fertilizer, etc.)
  • All business mileage on your personal car is recorded (dates, destinations, distances, purposes)
  • Crop sale proceeds and ag program payments are listed separately
  • Active versus passive farming activities are noted correctly
  • Assets and expenses are reported accurately (know what’s depreciable) 

Invest time now to organize your documents. Then, consider what changes you can make to your daily operations in 2021 that may make the tax submission process even simpler next year.

Learn more about these common tax pitfalls for farmers.

Don’t Miss It: The Deadline for Risk Coverage Programs is Approaching Quickly

by Tiverton 

The deadline to enroll into the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) program is Monday, March 15.

Enrollment in these risk coverage programs ensures financial compensation should any of your eligible crops decrease in price substantially. Failure to register before local close of business on Monday means you will not receive funds to cover any drastic market fluctuations in the 2021 crop year.

Before enrolling, be sure to consult your crop insurance policy, as some policies are impacted by your participation in ARC or PLC.

Contact your local USDA Farm Service Agency office today so you can make an appointment to enroll.

Learn More: March 15 Last Day to Complete Enrollment for 2021 Agriculture Risk Coverage

by Tiverton 

In the fourth quarter of 2020, loans to farmers significantly decreased to a historically low number. According to the National Survey of Terms of Lending to Farmers, farm lending declined at an average pace of 2% throughout 2020.

Why the Decrease?: This could be due to stronger prices for agricultural commodities as well as government payments, since some farmers required less financing by the fourth quarter. Despite the downward trending of the number of loans given out, the average size of the farm loans given out grew.

Those who did receive agricultural loans received historically low interest rates after a decline that began in the second quarter of 2020. Annual interest expenses were nearly 40% lower compared to the beginning of the year.

The improved financial conditions for farmers in the fourth quarter despite a pandemic has been a positive aspect of 2020. As key agriculture commodities including  corn, soybeans, and wheat increase in price, the need for farming loans may continue to decrease.


Learn More: Ag Lending Update: Fewer New Loans to Farmers