Farmland Acre Reallocation | Ready, Set, Go!

arc vs. plc pros and cons  Farmland Acre Reallocation | Ready, Set, Go! arc vs

Allocating Base acres to the highest returns is a key consideration for farmers and producers

As the era of direct payments has gone away, the new era of ARC (agricultural risk coverage) and PLC (price loss coverage) take shape. Producers across the country now have the opportunity to reallocate their base acres under the new Farm Bill. As we outlined in a previous post, Dr. Chris Hurt from Purdue Agricultural Economics points out the importance of allocating your base to the highest returning crops and under what conditions you should consider ARC vs. PLC (the pros and cons).

Who can reallocate base acres?

Only Land Owners

UNLESS there is a crop share arrangement with the tenant, in which case the tenant is also considered a producer.

What is the next step?

If you didn’t attend the recent USDA/Purdue University/Farm Credit educational session, you might be able to catch one in a different city. (but we know most of you are in the field now). As risk management gains momentum for producers of all sizes, lean on the experts that you trust to help guide decisions for your operation.

The USDA & FSA have created several online tools and resources that are very helpful. These tools allow the farmer/producer to enter information and see projections about how ARC and PLC affect payments given a variety of outcomes or scenarios.

The new tools are now available at www.fsa.usda.gov/arc-plc.

Contact your Local FSA Agent, their expertise and training is the most valuable.

 

CHS Farm Family Photo of the Year at Purdue University

Sponsored by CHS Inc., a leading agribusiness company, is holding a farm family photo contest in conjunction with Purdue Athletics. To enter a photo, go to the Purdue Athletics Facebook Page

Purdue University Agriculture Farm Family of the Year  CHS Farm Family Photo of the Year at Purdue University purdue

 

About CHS Inc.

Farmer-owned with global connections. CHS Inc. is a Fortune 100 company and leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses.

CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

 

As a fellow Purdue Alumnus and fan of Boilermaker Athletics, we had to share!

Have a Safe Harvest in 2014!

It’s that time of year, there is a slight crispness to the air and freshness with every breeze. As I cruise down the local country roads or talk a walk through the fields, corn ears are dropping, soybean leaves are falling. I’ve seen a handful of combines in Southern Tippecanoe and Montgomery counties cutting beans and it won’t be long until harvest is in full swing.

Be cautious on country roads, Slow Moving Vehicles, tractors and combines, are moving to the fields. Take a moment and slow down

 

Have a safe harvest! 

FREE Guide to 1031 Tax Deferred Exchange of Farmland

Many people ask us about the tax saving techniques know as a “tax free exchange”or “1031 exchange”, or “like kind exchange.”

1031 Tax Free Exchange of Farms, Land and Real Estate!  FREE Guide to 1031 Tax Deferred Exchange of Farmland 1031exchange

Get Your FREE Book on Tax Free Exchange of Farms, Land and Real Estate Today!

When selling farmland real estate in Indiana, this is an excellent way to save on capital gains tax, if you qualify. The “1031” comes from the Internal Revenue Code, Section 1031. It  allows a person to defer paying taxes on the gain that may occur when selling real estate, or in our case farms in Indiana.

What questions do you have on 1031 Exchange? This book helps!

For Example: If you sell a farm, for example, for a million dollars and your cost/basis is only $100,000, then you would owe our Uncle Sam taxes on your gain of $900,000. BUT, with proper planning, the establishment of intent to exchange and the advise from your land broker, tax advisor and in some cases an attorney, you can exchange the farm or land by finding another property to buy with that gain. As such, you can “defer” paying the gain tax until you sell the other property.

Get Your FREE Copy of the Book Today! We’ll mail you a copy!