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    Tax Implications of Drought Induced Livestock Sales

    As South Dakota producers affected by severe drought have either made non-traditional livestock sales or plan to sell a larger than normal number of breeding animals in 2017, this article provides information and examples about two different tax treatments producers should be talking to their tax advisor or consultant about.

    Read More »

    Exchange Rates and Their Effect on U.S. Sheep Industry

    Per capita lamb and mutton consumption is fairly stable in the U.S. Imports of lamb have offset the decline in domestic production in recent years. Lamb and mutton imports, currently account for nearly half of U.S. consumption, are mainly from Australia (about 68-70 percent) and New Zealand (about 30-32 percent).

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    Working Capital for South Dakota Farms

    Many farms in South Dakota built working capital and financial reserves between 2009 and 2012, a recent period of relatively high returns. Since 2013 the strong working capital position has been on a downward trend. Figure 1 shows average working capital positon per acre of farms enrolled in South Dakota Center for Farm and Ranch Management (SDCFRM) program.

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    Expectations for Pasture Rental Rates 2016-2017

    The cash rental rates for pasture/rangeland in South Dakota last year saw some fairly large increases across the state. Despite a downward change in feed and live cattle prices in 2015, cash rental rates still increased. The state average for pasture/ rangeland rental was $31.40 per acre in 2015 and $28.40 in 2014.

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    2016 Farm Family Income Expectations: What they mean

    The 2016 forecast of national net farm income was recently released by the USDA Economic Research Service (ERS). The ERS estimates a 3 percent decline compared to 2015 income figures. This is a potential decrease of $1.65 billion dollars in net farm income, a reduction in farm income from $56.45 billion in 2015 to $54.8 billion in 2016.

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    Why Precision Agriculture?

    When precision agriculture comes into a conversation a few questions arise. Three of those questions might be: What is precision agriculture? How does precision agriculture make our farm more profitable? What do I do with all this data?

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    1099 Tax Forms For Agriculture Producers

    Farmers and ranchers regularly pay for services from individuals who are not their fulltime employees. Typical compensation includes wages or other payments to self-employed workers and contractors, and rent paid to landowners. Under IRS regulations, a 1099 form should be issued to certain non-employees who perform services and are paid over $600 in a calendar year.

    Read More »

    The Importance of Depreciation When Keeping Records for 2017 Taxes

    Depreciation is an important part of keeping records in agriculture. Depreciation is a reduction in the value of an asset over time, due to wear and tear. Things such as tractors, trailers, etc. all depreciate over time. Depreciation is also a way to make an income tax deduction to recover the cost of qualifying assets. Careful consideration of how to report tax depreciation helps producers comply with IRS regulations and can result in a reduction of income taxes paid.

    Read More »

    Farm & Ranch Taxes: 2017 Changes

    Tax rules and regulations change annually, so it is important for producers and tax professionals to stay up to date. For 2017 there have been some changes to the farmers and ranchers tax guide. This article will highlight the majority of updates.

    Read More »

    Ag Sustainability in High School Classrooms: Professional development training

    In an effort to educate today’s youth about sustainable agriculture, SDSU Extension field specialists teamed up with educators from University of Nebraska Lincoln (UNL) and presented a four-hour training session for South Dakota high school teachers on January 5, 2018 at the SDSU Student Union.

    Read More »

    2017-2018 La Niña & Winter Outlook

    The NOAA Climate Prediction Center has officially declared a La Niña Advisory, as of November 9, 2017. This means that La Niña conditions are observed and expected to continue. They observe La Niña conditions using sea surface temperatures in the Pacific Ocean and if weather patterns in the atmosphere are changing due to the ocean temperatures.

    Read More »

    Cover Crops & Livestock Integration: An opportunity for profit on S.D. farms

    Cover crops have been gaining a reemerging acceptance over the last decade, with very few producers disagreeing about the potential soil health benefits of adding cover crops to their farming operation. However, with low commodity prices producers are trying to reduce expenses on inputs, especially on inputs with a varying or unknown return.

    Read More »

    Pasture, Rangeland, Forage Rainfall Index (PRF-RI) Insurance for 2018

    Sporadic rainfall early in 2017 focused attention on insurance for pasture and forages for livestock feed. The primary product, Pasture, Rangeland, and Forage (PRF) insurance, is offered nationwide. In South Dakota the coverage is based on a Rainfall Index (PRF-RI) with indemnity payments tied to a lack of rainfall in a given area.

    Read More »

    1099 Tax Forms For Agriculture Producers

    Farmers and ranchers regularly pay for services from individuals who are not their fulltime employees. Typical compensation includes wages or other payments to self-employed workers and contractors, and rent paid to landowners. Under IRS regulations, a 1099 form should be issued to certain non-employees who perform services and are paid over $600 in a calendar year.

    Read More »

    The Importance of Depreciation When Keeping Records for 2017 Taxes

    Depreciation is an important part of keeping records in agriculture. Depreciation is a reduction in the value of an asset over time, due to wear and tear. Things such as tractors, trailers, etc. all depreciate over time. Depreciation is also a way to make an income tax deduction to recover the cost of qualifying assets. Careful consideration of how to report tax depreciation helps producers comply with IRS regulations and can result in a reduction of income taxes paid.

    Read More »

    Farm & Ranch Taxes: 2017 Changes

    Tax rules and regulations change annually, so it is important for producers and tax professionals to stay up to date. For 2017 there have been some changes to the farmers and ranchers tax guide. This article will highlight the majority of updates.

    Read More »

    Pasture, Rangeland, Forage Rainfall Index (PRF-RI) Insurance for 2018

    Sporadic rainfall early in 2017 focused attention on insurance for pasture and forages for livestock feed. The primary product, Pasture, Rangeland, and Forage (PRF) insurance, is offered nationwide. In South Dakota the coverage is based on a Rainfall Index (PRF-RI) with indemnity payments tied to a lack of rainfall in a given area.

    Read More »

    2017 Rates of Return to Land

    According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to the present.

    Read More »

    2017 South Dakota Agricultural Land Values

    There is considerable variation in land values within each Region and for each non-irrigated agricultural land use. For example, 2017 cropland values in the East-Central region vary from an average of $4,186 (in the Sanborn, Davison, Hanson and Kingsbury cluster) per-acre for low-productivity cropland to $9,025 (Minnehaha-Moody cluster) per-acre for high-productivity cropland.

    Read More »

    2017 South Dakota Pasture Cash Rental Rates

    Average cash rental rates per-acre reflect regional differences in productivity and carrying capacity of pasture and rangeland tracts, with fluctuations in the commodity markets and potential profits, affecting cash rental rates.

    Read More »

    2017 SDSU Land Value Cash Rental Rate Overview

    According to the 2017 SDSU Farm Real Estate Market Survey average cropland value for the state is $3,903, down 4.7% from 2016. Cropland values saw continued pressure due to low margins for cropland production. Pasture land was steady to slightly down with a decrease of 0.6% and with state average value of $1,215.

    Read More »

    1099 Tax Forms For Agriculture Producers

    Farmers and ranchers regularly pay for services from individuals who are not their fulltime employees. Typical compensation includes wages or other payments to self-employed workers and contractors, and rent paid to landowners. Under IRS regulations, a 1099 form should be issued to certain non-employees who perform services and are paid over $600 in a calendar year.

    Read More »

    The Importance of Depreciation When Keeping Records for 2017 Taxes

    Depreciation is an important part of keeping records in agriculture. Depreciation is a reduction in the value of an asset over time, due to wear and tear. Things such as tractors, trailers, etc. all depreciate over time. Depreciation is also a way to make an income tax deduction to recover the cost of qualifying assets. Careful consideration of how to report tax depreciation helps producers comply with IRS regulations and can result in a reduction of income taxes paid.

    Read More »

    Farm & Ranch Taxes: 2017 Changes

    Tax rules and regulations change annually, so it is important for producers and tax professionals to stay up to date. For 2017 there have been some changes to the farmers and ranchers tax guide. This article will highlight the majority of updates.

    Read More »

    Ag Sustainability in High School Classrooms: Professional development training

    In an effort to educate today’s youth about sustainable agriculture, SDSU Extension field specialists teamed up with educators from University of Nebraska Lincoln (UNL) and presented a four-hour training session for South Dakota high school teachers on January 5, 2018 at the SDSU Student Union.

    Read More »

    2017-2018 La Niña & Winter Outlook

    The NOAA Climate Prediction Center has officially declared a La Niña Advisory, as of November 9, 2017. This means that La Niña conditions are observed and expected to continue. They observe La Niña conditions using sea surface temperatures in the Pacific Ocean and if weather patterns in the atmosphere are changing due to the ocean temperatures.

    Read More »

    Cover Crops & Livestock Integration: An opportunity for profit on S.D. farms

    Cover crops have been gaining a reemerging acceptance over the last decade, with very few producers disagreeing about the potential soil health benefits of adding cover crops to their farming operation. However, with low commodity prices producers are trying to reduce expenses on inputs, especially on inputs with a varying or unknown return.

    Read More »

    Tax Implications of Drought Induced Livestock Sales

    As South Dakota producers affected by severe drought have either made non-traditional livestock sales or plan to sell a larger than normal number of breeding animals in 2017, this article provides information and examples about two different tax treatments producers should be talking to their tax advisor or consultant about.

    Read More »

    2017 Rates of Return to Land

    According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to the present.

    Read More »

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