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.

Data Considerations in Today’s Crop Production

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

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

We bring you tidings of gifts and tax implications in this season of giving

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

Lessiter Media Editor to Deliver Kick-off Address at 2019 Central Ohio Precision Ag Symposium

Only 40 days until the 2019 Central Ohio Precision Ag Symposium – Register now!

Lessiter Media’s Jack Zemlicka will be delivering the first presentation during the 2019 Central Ohio Precision Ag Symposium. Zemlicka will address the current adoption trends in precision ag and insights gained from farmers, dealers and manufacturers on where the industry is headed.

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. Zemlicka’s presentation, Precision Agriculture Adoption, will follow the 9 a.m. welcome address. Following him, there will be three more presentations in the first half of the day:

  • Data Considerations in Today’s Crop Production, Dr. John Fulton
  • 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

Farm Bill Deal Includes Key Commodity Program Changes

Source: AgWeb.com

Key changes:

  • Adjusted loan rates
  • Annual choice between ARC and PLC
  • Opportunity to update yield data
  • Grassland to be removed from base acres

The four key ag committee leaders announced agreement in principle on a final farm bill Thursday. That deal includes some key changes to the Commodity Title of the bill, including adjustments sought by farm groups, according to Pro Farmer Washington Analyst Jim Wiesemeyer.

The first key change according to Wiesemeyer comes in a provision to increase loan rates while allowing for an annual election between the Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Under the previous farm bill, growers made a single selection between the two programs for the life of the farm bill.

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2018 Farm Sector Income Forecast, November

Source:  USDA ERS

Net farm income, a broad measure of profits, is forecast to decrease $9.1 billion (12.1 percent) from 2017 to $66.3 billion in 2018, after increasing $13.8 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $8.5 billion (8.4 percent) to $93.4 billion. In inflation-adjusted 2018 dollars, net farm income is forecast to decline $10.8 billion (14.1 percent) from 2017 after increasing $13.0 billion (20.2 percent) in 2017. If realized, inflation-adjusted net farm income would be 3.3 percent above its level in 2016, which was its lowest level since 2002.

See a summary of the forecasts in the table U.S. farm sector financial indicators, 2011-2018F, or see all data tables on farm income and wealth statistics.

Net farm income and net cash farm income, 2000-18F

[In the text below, year-to-year changes in the major aggregate components of farm income are discussed only in nominaldollars unless the direction of the change is reversed when looking at the component in inflation-adjusted dollars.]

Summary Findings

Continue reading

Central Ohio Precision Ag Symposium

The Central Ohio Precision Ag Symposium will be held on Wednesday, January 16, 2019 at All Occasions Catering 6986 Waldo-Delaware Rd., Waldo Ohio from 9 a.m. to 4 p.m.  This year’s program will feature the most current technologies available in precision agriculture. These topics will be shared by some of the leading university and industry Precision Ag experts.

This year’s program opens with a discussion regarding where we are in Precision Ag today – “The Adoption of Precision Ag Technologies” – Jack Zemlicka, Ag Division Content Director Lessiter Media and ends with a look into the crystal ball – “The Future of Precision Ag” – Dr. Scott Shearer, The Ohio State University.

Data management is a “hot “topic in today’s precision agriculture.  Dr. John Fulton will share his insights on “Data Considerations in Today’s Crop Production”.  You will learn about data security and who can/has access to your data at afternoon breakout sessions from Climate-Fieldview, Agleader–Agfinity, and My JohnDeere.  Learn about the value of your data and opportunities for selling your data at one of the Farm Mobile breakout sessions.

Artificial intelligence is changing our industry.  Tim Norris will discuss “AI” and share insights from Knox County’s first autonomous tractor.  “AI” will be part of several other afternoon breakout sessions as well.  New datum changes are scheduled for 2022.  Jeff Jalbrzikowski will explain how this change could potentially affect our current maps and GPS positioning files.

To be the premier source of research-based information in the age of digital agriculture” is the vision of the Ohio State Digital Ag Program.  Dr. Elizabeth Hawkins will discuss the nearly 100 OSU on-farm research trials conducted throughout Ohio in 2018.  Everyone in attendance will receive a copy of the 2018 eFields Report.

Afternoon breakout sessions will include manufacturing and technology updates including how to get the most from your in-cab displays from John Deere, Case IH AFS, Precision Planting, Capstan, AGCO, New Holland and Soil Max.

$50 registration fee includes a buffet lunch, breaks and a notebook containing all presentations.  Seating is limited, registration deadline is December 28, 2018.

This symposium will provide up to 11.5 Continuing Education Credits (CEU’s) for Certified Crop Advisors,

S&W – .5, I.P.M. – 5.5, C.M. – 5.5.

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.

For more information or to download registration form, go to http://u.osu.edu/knoxcountyag/2018/11/28/central-ohio-pre…ion-ag-symposium/ or

https://knox.osu.edu/news/central-ohio-precision-ag-symposium or contact the OSU Extension Office in Knox County at 740-397-0401 or AgInfoTech 740-507-2503.

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

Landowner’s Evidence Not Determinative in CAUV Tax Appeal According to Ohio Supreme Court

Source: Evin Bachelor, Law Fellow, Agricultural and Resource Law Program

 

A landowner may present evidence regarding the value and acreage of his or her land, but the Board of Tax Appeals (BTA) is free to weigh that evidence as it wishes, according to the Ohio Supreme Court.  All seven justices agreed that the BTA in the case of Johnson v. Clark County Board of Revision acted with appropriate discretion, although two justices did not sign onto the reasoning as to why the BTA acted appropriately.  The case involved a property owner’s challenge of the Clark County Auditor’s determination of Current Agricultural Use Valuation (CAUV) for property tax purposes.

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