Profit Tips Article Archive

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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