Understanding FSA’s 2021 ARC/PLC Election and Enrollment

Producers can now make elections and enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2021 crop year. Producers can elect coverage and enroll in crop-by-crop ARC-County or PLC, or ARC-Individual for the entire farm. Although election changes for 2021 are optional, enrollment (signed contract) is required for each year of the program. The deadline to enroll and make amendments to program elections is March 15, 2021.

Join The Ohio State University Extension Service as they host a webinar to discuss the ARC/PLC decision for the 2021 program year including updates on current market outlook and decision-tool calculators available to evaluate options and deadlines.

There is no cost to attend these meetings, but registration is required. To register visit: go.osu.edu/arcplc2021

  • The webinar is scheduled for Thursday, February 25, 2021 from 9:00 am – 11:00am EDT.
  • For more information or to ensure your question is addressed during the webinar, please send questions to Mary Griffith, Griffith.483@osu.edu or 740-852-0975.

Farmer’s Tax Guides – Tax Guidance for Your Farm Business

By Barry Ward, Director, OSU Income Tax Schools

Do you need a resource to answer those tough farm tax questions? If so, you can access the Farmer’s Tax Guide (IRS Publication 225) online at: https://www.irs.gov/pub/irs-pdf/p225.pdf

The 2020 Farmer’s Tax Guide explains how federal tax laws apply to farming. This guide can be used as a guide for farmers to figure taxes and complete their farm tax return.

The explanations and examples in this publication reflect the Internal Revenue Service’s interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. However, the information given does not cover every situation and is not intended to replace the law or change its meaning.

Some of the new topics for the 2020 tax year which are included in this publication are: Tax treatment of Coronavirus Food Assistance Program (CFAP) payments, Payroll Protection Program (PPP) Loans and Forgiven Debt, Increased section 179 expense deduction dollar limits, COVID-19 related employment tax credits and other tax relief, Redesigned Form W-4 for 2020, New Form 1099-NEC, and much more.

Hardcopies of the 2020 Farmer’s Tax Guide are also available at select county OSU Extension offices.

The Rural Tax Education Site has additional resources for agriculturally related income and self-employment tax information that is both current and easy to understand: https://ruraltax.org/

Agricultural Risk Coverage and Price Loss Coverage for the 2021 Crop Year

The 2018 Farm Bill reauthorized the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) safety net programs that were in the 2014 Farm Bill. Producers must enroll  in ARC/PLC for the 2021 crop year through their local Farm Service Agency office. Producers can amend the program elections they made for the 2019 and 2020 crop years for the 2021 crop year. The signup period for the 2021 crop year is open now, and the deadline to enroll and make amendments to program elections is March 15, 2021.

If changes are not made by March 15, 2021 deadline, the election defaults to the programs selected for the 2020 crop year with no penalty. Producers will have the opportunity to amend program elections again for the 2022 and 2023 crop years. Continue reading

Thanksgiving dinner cost remains stable

From Ty Higgins, Ohio Farm Bureau

As many families struggle with the economic impacts of the pandemic, there is good news in this year’s Thanksgiving dinner cost survey, conducted by the American Farm Bureau Federation. The average cost of a traditional Thanksgiving dinner for 10 remains affordable for consumers, coming in at $46.90 or less than $5 per person, a decline of 4% from last year.

The 35th annual informal survey of classic food items typically found on the Thanksgiving Day table shows the average cost of this year’s Thanksgiving dinner is the lowest since 2010. The AFBF Thanksgiving dinner survey was first conducted in 1986. The informal survey provides a record of comparative holiday meal costs over the years. Farm Bureau’s classic survey menu has remained unchanged since 1986 to allow for consistent price comparisons.

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Farmer and Farmland Owner Income Tax Webinar

By:  Barry Ward, Director, OSU Income Tax Schools
College of Food, Agricultural and Environmental Sciences, OSU Extension

Are you getting the most from your tax return? Farmers and farmland owners who wish to increase their tax knowledge should consider attending this webinar that will address tax issues specific to this industry. Content focuses on important tax issues and will offer insight into new COVID related legislation.

Mark your calendars for December 3rd, 2020 to participate in this live webinar from 6:30 to 8:30 pm. The event is a joint offering from OSU Income Tax Schools which are a part of OSU Extension and the College of Food, Agricultural and Environmental Sciences and Purdue University Income Tax Schools.  If you are not able to attend the live webinar, all registered participants will receive a link to view the recorded webinar at a time of their convenience. This link will be available through the tax filing season. Continue reading

2020 Virtual Agricultural Lender Seminar

2020 Virtual Agricultural Lender Seminar
Wednesday October 21, 2020
9:00 am—12:00 pm
Registration Is Now Open
Link: http://go.osu.edu/2020AgLenderSeminarReg
Cost $25

Topics and speakers:
Grain Prices and Farm Policy – Ben Brown, OSU AEDE
Enterprise Budgets and Returns per Acre – Barry Ward, OSU Extension
Niche/Small Farm Legal Issues – Peggy Hall, OSU Extension
Growing Customer Relationships – Rob Leads, OSU Extension
U.S. Ag & Financial Conditions – David Oppedahl, Federal Reserve Bank, Chicago

Feel free to contact OSU Extension Defiance County at 419-782-4771 or walters.269@osu.edu

Last Chance: Act Now to Update PLC Yields

By Clint Schroeder OSU Extension

Landowners or producers with a Power of Attorney for their landowner have until September 30, 2020 to update their Price Loss Coverage (PLC) yield, also referred to as farm yield, information on file with the United States Department of Agriculture (USDA) Farm Service Agency (FSA). PLC yields exist for each FSA farm number and commodity. This one-time opportunity to update yield information for covered commodities was a provision in the 2018 Farm Bill. The updated yields will be used to calculate payments under the PLC program for the 2020 through 2023 crop years if market prices trigger payments. PLC yields have also been used before in disaster relief programs. There is no guarantee that farmers will have this opportunity again under future farm bills. If a farm chooses to not update their yield info the existing yields for the farm will be used. Not all updated yields will produce a higher yield. In the case where the new calculated yield for a farm and commodity is lower than the existing yield, FSA will take the higher of the two.  Producers who are currently enrolled in the Agriculture Risk Coverage (ARC) should also consider updating their yields as the option to change program election exists within the current farm bill in 2021, 2022, and 2023.

Yields will be updated by submitting FSA form CCC-867 for each farm number and covered commodity. Each completed form will need to include one signature of a farm owner. If the reported yield in any year is less than 75 percent of the 2013-2017 average county yield, the yield will be substituted with 75 percent of the county average yield. For more information please contact your local FSA office.

The FSA form CCC-867 can be found here

USDA Extends CFAP Deadline, Covers Additional Commodities

Producers can now apply for Coronavirus Food Assistance Program (CFAP) assistance through Sept. 11.

USDA extended the deadline of the $16 billion COVID-19 relief package and announced additional commodities to be covered by the program this week.

Farmers who already applied and received assistance can also expect a final payment. While producers initially received 80% of their payments to ensure availability of funding, USDA said the Farm Service Agency (FSA) will now automatically issue the remaining 20% to those eligible. Going forward, approved CFAP applicants will receive 100% of their total payment.

USDA recommends producers, especially those who have not previously worked with FSA, call 877-508-8364 to start the application process. More info on CFAP and how to apply here.

Farm Science Review will be a Virtual show in 2020

By Sherrie R. Whaley Ohio State

For the first time in its nearly 60-year history, The Ohio State University’s Farm Science Review, scheduled for Sept. 22 to Sept. 24, will not be held in-person. Instead, a virtual show will be implemented for 2020.

The farm show, sponsored by Ohio State’s College of Food, Agricultural, and Environmental Sciences (CFAES), annually attracts over 100,000 visitors from all over the United States and Canada to the show site in London, Ohio.

A “robust and innovative” virtual Farm Science Review is being planned for 2020. (Photo courtesy of FSR)

“We are committed to delivering a robust and innovative virtual show in support of agriculture during this pandemic,” said Cathann A. Kress, vice president and dean of CFAES.

“Throughout its history, the Farm Science Review has been at the forefront of showcasing the future of agriculture,” she said. “While it may look different in 2020, we will continue to meet the needs of our growers and partners through access to exhibitors, virtual demonstrations, and education about the most recent advancements in agricultural production.” Continue reading

Water Quality Extension Associate Services in NW Ohio

By: Rachel Cochran, Brigitte Moneymaker, Jordan Beck, Nick Eckel, Matthew Romanko, Boden Fisher, OSU Extension

Our Goal

Our goal is to engage farmers and their trusted advisors in new production strategies, technologies, and best management practices to improve fertilizer use efficiency and farm profitability while promoting soil health and reducing nutrient and sediment losses within the western Lake Erie basin.

Through education, outreach, and demonstrations highlighting the benefits of practices we hope to encourage widespread practice adoption and sustained practice implementation.

What We Need Help With

  • Learning about the unique challenges that face area farmers.
  • Finding partners interested in adopting new technologies and conservation practices and understanding their potential water quality, soil health and agronomic benefits.
  • Identifying potential sites for on-farm applied research trials and case studies.

Continue reading