BEECH TREES ARE DYING, AND NOBODY’S SURE WHY

Originally posted at CFAES.OSU.EDU

A confounding new disease is killing beech trees in Ohio and elsewhere, and plant scientists are sounding an alarm while looking for an explanation.

In a study published in the journal Forest Pathology, researchers and naturalists from The Ohio State University and metroparks in northeastern Ohio report on the emerging “beech leaf disease” epidemic, calling for speedy work to find a culprit so that work can begin to stop its spread.

 

Continue reading →

Artificial Intelligence – How Is It Going To Change Our Industry?

Knox County’s 1st Autonomous Tractor

Only 33 days until the 2019 Central Ohio Precision Ag Symposium – Register now!

We are in the midst of unique and exciting times, when agriculture is transforming from the “old” precision agriculture to the era of artificial intelligence.  Artificial intelligence (AI) is a technology that exhibits behavior that could be interpreted as human intelligence. Can we apply artificial intelligence in agriculture? Can a computer be better than man in making decisions.  Can an algorithm beat farmer’s gut instinct and experience?

In recent years, agriculture has gone through a major revolution. From being one of the most traditional sectors, it has become one of the most progressive ones.

Artificial Intelligence will be a part of may presentations at the 2019 Central Ohio Precision Ag Symposium.  This program is sponsored by The Ohio State University Extension, AgInfoTech, Advantage Ag & Equipment, Ag Leader, B&B Farm Service, Beck’s, Capstan, Centerra Co-op, Central Ohio Farmers Co-op, Channel, Clark Seeds, Climate Corp., Evolution Ag, Farm Credit Services, Farm Mobile, First Knox National Bank,  JD Equipment,  Ohio Ag Equipment, Precision Planting, Seed Consultants, Smart Ag and Soil-Max.

Click here for agenda and registration information: CentralOhioPrecisionAg19 FNL-2nc71zi

 

 

New Farm Bill

 

Agriculture is one of Ohio’s most important industries, contributing more than $100 billion to our economy and putting food on the table for thousands of Ohio workers and people around the world.

The new farm bill was signed by President Trump Yesterday.  The link below will take you to the Senate Ag Committee’s title by title summary.

https://www.agriculture.senate.gov/imo/media/doc/Conference%20Report%20Summaries.pdf

 

 

Depreciation of Farm Assets under the 2017 Tax Law

Chris Zoller, Extension Educator

The Tax Cuts and Jobs Act (TCJA) revised some differences between farm and non-farm assets and added other depreciation rules that will have a significant impact when calculating net farm income.

Revised Recovery Period for Farm Machinery & Equipment

Under the TCJA, new farm equipment and machinery placed in service after December 31, 2017, is classified as 5-year MACRS property. Previously, machinery and equipment was classified as 7-year MACRS property. These assets must be used in a farming business. Equipment used in contract harvesting of a crop by another tax payer is not included in the business of farming.

Used equipment is still classified as 7-year MACRS property. The Alternative Depreciation System (ADS) for all farm machinery and equipment, new and used, is 10 years. Grain bins and fences are still 7-year MACRS property with a 10-year ADS life.

Farm Equipment Purchase Example:

Bill Brown purchased a new combine on September 28, 2017. In May 2018, he purchased a new tractor and used tillage tool. In August 2018, Bill constructed a new fence and in September he constructed a new grain bin. These assets are MACRS recovery classes:

New combine (2017)      7-year

New tractor (2018)         5-year

Used tillage tool               7-year

Fence (2018)                    7-year

Grain bin (2018)             7-year

New Rules for Depreciation Methods

Assets placed in service after December 31, 2017, have depreciation rates increased to 200% Declining Balance (DB) for those farm assets in the 3, 5, 7, and 10-year MACRS recovery classes. Assets in the 15 and 20-year MACRS recovery classes are still limited to a maximum of 150% DB. Residential rental property and nonresidential real property continue to be limited to Straight Line (SL) depreciation.

Farm Equipment Depreciation Example:

Bill Brown paid $430,000 in 2017 for the new combine. He elected out of bonus depreciation and did not elect any Section 179 expense deduction. The half-year convention applies. Bill depreciates the combine over a 7-year MACRS recovery class using the 150% DB method. His depreciation is:

[($430,000/7) x 0.5 x 150%] = $46,071

What is the difference if Bill waited until 2018 to make the combine purchase?

[($430,000/5) x 200%) = $86,000

$86,000 – $46,071 = $39,929 more than if purchased in 2017

Excess Depreciation

The increase in the rate of depreciation, combined with the shorter MACRS recovery class for new farm equipment and machinery, may generate more depreciation than needed. Taxpayers may choose to use the Straight Line (SL) method of depreciation and may also elect to use the 150% method. Both elections are made on a class-by-class basis each year. To further reduce the amount of depreciation, you may elect to use the ADS, which calculates depreciation using the SL method and lengthens the recovery period.

Resources

For additional information about this topic, contact your tax advisor or visit: https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act.