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
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.
Chris Zoller, Extension Educator
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
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.
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.
The 2019 Ohio, Indiana, and Illinois Weed Control Guide is now available for download https://
Big Data is one of the current “buzz words’ in precision agriculture.
We can easily fill computer hard drives with the data we are able to collect today. Just last year the Ohio State Precision Ag Team set a world record for the amount of data collected (18.4 gigabytes) from one corn plant during the growing season. How much is 18.4 gigabytes? Think of it this way. According to the Ohio Country Journal, if you were to collect that much data per plant in a 100 acre field, you would need 360 million file cabinets to store all the data.
Our challenge today is to sort through all the data to determine the amount and type of data we are capable of managing. Dr. John Fulton will address some of these issue in his presentation – “Data Considerations in Today’s Crop Production” at the 2019 Central Ohio Precision Ag Symposium.
The event, hosted by Ohio State University Extension – Knox County and Ag Info Tech will take place Jan. 16 in Waldo, Ohio, at All Occasions Catering. Doors for registration will open at 8:30 a.m. Lessiter Media’s Jack Zemlicka address the current adoption trends in precision ag and insights gained from farmers, dealers and manufacturers on where the industry is headed.
Other morning topics include:
- What Will New Datum Changes Mean to Precision Agriculture, Jeff Jalbrzikowski
- Artificial Intelligence – How is it going to change Our Industry, Tim Norris
Included between these presentations will be time for attendees to meet with sponsors of the events. Following the last presentation, there will be an hour-long lunch break.
After lunch, attendees will be able to go to breakout sessions on topics ranging from manufacturing and technology to data/software updates. The event will finish with a closing presentation from Dr. Scott Shearer on the future of precision agriculture.
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
Source: Iowa State University, (Edited)
As the end of the year approaches and we reflect on the 2018 growing season we need to look at what changes or improvements we need to make in our production plans for 2019. Herbicide resistant weeds are continuing to create problems. New, very invasive and harmful weed species (Palmer Amaranth and Waterhemp) are now prevalent in Knox County. Therefore, a review of the effectiveness of your herbicides program is definitely in order.
To effectively battle these new weed problems, creating a comprehensive, all-encompassing weed control strategy is essential in today production agriculture. Over the next 4 weeks I will share information developed by Meaghan Anderson and Dr. Bob Hartzler at Iowa State University on developing a long-term weed management system.
Last week’s post: Herbicide program development: Using multiple sites of action
This week’s post: Herbicide program development: Using effective herbicide groups
After you’ve started working on a program that contains multiple herbicide groups (sites of action), you need to make sure you’re using multiple herbicide groups that will be effective against your target weeds. For most people, the target weed will be waterhemp. Others may have problems with giant ragweed, horseweed/marestail, or other weeds. Waterhemp is the target weed in my example, but consider what your most problematic weeds are to run through this exercise for yourself.
Things to consider when determining whether a herbicide is effective against your target weed include (1) whether the herbicide is labeled to control the weed and (2) whether your target weed is resistant to the herbicide group.
Let’s look at herbicides as if waterhemp is the weed that causes us the most issues. Here’s a table of herbicide groups used in Iowa crops.
Source: Ohio Agricultural Law Blog
The holiday season stands out as one of the most generous times of year as people give gifts to the people they love. What better way to get into the holiday spirit than to talk about the tax implications of your gifts? There are three shopping weekends left until December 25th, so here are three highlights about the federal gift tax that you should know:
1. The federal gift tax is assessed on the person who gives the gift, not the person who receives the gift.
An individual who gives a gift of cash or assets with a fair market value greater than $15,000 to any one person in a given year will have to report the gift(s) using IRS Form 709 when filing taxes for that year. These forms cannot be filed jointly, so if a married couple gives a gift that is worth more than $30,000 to any one person, both of them must file IRS Form 709 and report half of the value of the gift.
Form 709 requires a few pieces of information about the gift and who receives the gift. It asks for things like a description of the gift, the recipient’s name and address, when it was given, and its value. While documentation or receipts do not have to be submitted with Form 709, filers should keep records for themselves about the gift in case the IRS has questions.
The gift tax rates for 2018 range from 18 to 40 percent. The rates depend upon how much in excess of the $15,000 exclusion the gift is valued. For instance, a gift valued at $20,000 would have no taxes on the first $15,000, but the $5,000 over the $15,000 threshold would be subject to an 18 percent tax. The 40 percent rate applies to gifts valued at $1,015,000, or $1,000,000 over the $15,000 exclusion.
Fortunately for the recipient, the gift does not count as income to the recipient because the gift falls under the gift tax rules instead of the income tax rules. Continue reading