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MANAGEMENT

Manage employees, analyze yield drivers, explore forage markets, become more confident in preparing farm financial statements, and untangle farm succession issues.

LATEST

Tax codes on equipment trades just got trickier.

Under old tax law, a farmer could trade in farm equipment and recognize no gain or loss on the trade. For example, assume a farmer has an old combine worth $200,000 and trades it in for a new combine worth $500,000. The $200,000 trade value is essentially ignored and the tax cost basis of the new combine is simply $300,000 (the net cash paid).

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Feed is the most expensive and one of the most necessary products in a ranch budget, making it no surprise that ranchers love a good discount on hay. Hay producers, on the other hand, have to decide whether or not that discount is worth the risk to their businesses.

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There is a lot of interest and energy being focused on cover crops and cover crop usage across the country. In fact, as I am writing this article, there is a “cover crop meeting” going on in our conference room.

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We have suspected for a long time the average yield of alfalfa reported for U.S. farms is far less than what growers could produce. Is there a significant “yield gap” between these reports and reasonable yield goals?

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Headlines highlighting global geopolitics are increasingly becoming a concern for ag operators, ag investors and the network of vendors who sell products and services in our industry.

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The current hay-marketing year began with May 1, 2017, hay stocks down 3 percent from a strong 2016 level. Hay production in 2017 struggled with a number of challenges ranging from drought to wildfires to floods.

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