Corporate Transparency Act reporting deadline remains January 1, 2025: This applies to many farming entities

Recent legislation may apply to your farm business entity.  Review the OSU Farm Office blog post: Corporate Transparency Act reporting deadline remains January 1, 2025 | Farm Office with information about the Corporate Transparency Act that applies to “any domestic or foreign corporation, limited liability company, or any other entity that is formed or registered to do business in a U.S. state.”  A few key highlights of this article:

  • The Corporate Transparency Act (“CTA”), enacted in 2021, requires “reporting companies” to file documents with the federal government indicating beneficial ownership information (BOI) for the business.
  • Despite the ongoing litigation, however, the initial filing deadline of January 1, 2025 remains in effect for businesses subject to the CTA.
  • “Reporting companies” subject to the CTA includes any domestic or foreign corporation, limited liability company, or any other entity that is formed or registered to do business in a U.S. state by filing a document with the secretary of state or other similar office.
  • Many farming entities should be uniquely aware of the new BOI reporting obligations of the CTA. The CTA does not have specific industry exemptions for agriculture but takes a broad sweep at any entity that may be formed as a shell company. However, notable exceptions to the mandates of the CTA that affect farming entities include sole proprietorships and general partnerships, which are exempt from CTA because they are not required to register with Ohio’s Secretary of State.

Review the entire article at: Corporate Transparency Act reporting deadline remains January 1, 2025 | Farm Office

Carbon Capture and Storage: Coming Soon to Ohio?

Among the many headlines discussing carbon, Carbon Capture and Storage is a potential future market in Ohio.  The OSU Agricultural and Resource Law program is beginning a series of posts to explain the background and interest for our region. See the entire first blog post here: Carbon Capture and Storage: Coming Soon to Ohio? | Farm Office.

Key points to know:

  • CCS technology captures CO2 from airborne emissions and injects it into geologic formations beneath the land surface.
  • Though some are hearing of CCS for the first time, CCS technology has existed for decades, as have many studies on its safety, sustainability, and the amount of carbon that can be stored in different formations and regions.
  • CO2 injection wells are regulated under the federal Safe Drinking Water Act by the EPA through the Underground Injection Control (UIC) Program. The category of wells relevant to CO2 for geological storage is “Class VI” wells.
  • A more recent (and arguably more prominent) factor driving CCS is the current federal tax incentive. The 2022 Inflation Reduction Act (IRA) expanded the tax credit known as “Section 45Q,” first enacted in 2008 and extended in 2018.
  • Can we do CCS in Ohio? No, not without legislation. Two legal changes are necessary to enable CCS technology in Ohio. (1) Ohio law must define and clarify property rights to the pore space in geological formations beneath land surfaces, and (2) the state must allow the establishment of CCS injection wells in Ohio. Clarification on these two requirements will come in future OSU Farm Office Blog posts.

Fall 2024 Regional Agronomic Weeds University: Licking County Host Site on November 21

OSU Extension invites crop producers, CCAs, and agribusinesses to attend a regional at the Fall 2024 Ohio State Weeds University on Thursday, November 21, 2024, from 9:00 am to 4:00 pm. The program will take place at locations across the state. Locations include Darke, Highland, Sandusky, Licking, Paulding, and Mahoning counties. This program is designed to keep agronomic crop producers on the cutting edge of weed control for their operations. Topics addressed will include preharvest weeds survey results, drone applications of herbicides, burcucumber control, new herbicides, and new technology in weed science. Hands-on exercises such as weed ID with live plants will also be part of the program and tailored to local needs. This is an in-person event with a portion of the presentations being broadcast virtually at each regional location.

Featured presentations and speakers include:

  • Drone Applications – Dr. Steve Li, Associate Professor & Weed Science Extension Specialist, Auburn University. Dr. Li’s research evaluates weed control and herbicide usage in agronomic and emerging crops, as well as herbicide drift and off-target injury. His research program is also a nationwide leader in evaluating drones for agricultural applications.
  • Burcucumber Control – Dwight Lingenfelter, Weed Science Extension Associate, Penn State University. Mr. Lingenfelter works in Extension and applied weed science research at Penn State, including the herbicide evaluation program. He has conducted some of the most comprehensive research on the management of burcucumber, a species that is now a reemerging threat to crop production in Ohio.
  • Ohio Agronomic Weeds Update – Dr. Alyssa Essman, Assistant Professor & Weed Science Extension Specialist, The Ohio State University. Dr. Essman provides leadership for an applied research and extension program for integrated weed management in agronomic crops. This talk will cover new herbicide products and EPA/ESA regulations for the coming growing season.
  • New Technology in Weed Science – Dr. Eugene Law, Assistant Professor, Weed Ecology, The Ohio State University. Dr. Law’s research program is focused in the areas of weed science and ecology, and precision technology for novel integrated weed management. This talk will cover new and emerging technology options for weed management and their relative efficacy

The registration fee per person is $40 and is due by November 14, 2024. This fee includes course materials and speaker Q&A sessions. On-site walk-ins are not available for this event and each site is limited to a maximum of 30 people. Commercial, Private Pesticide, and Certified Crop Adviser (CCA) credits will be available. Online registration will begin on Monday, October 28 or for additional information on the event, contact the education in the county in which you are attending:

Articles and resources for management decisions in a drought

Drought and Dust: Preparing for Winter Feed Shortages | Ohio BEEF Cattle Letter 

Alternative forage option when the rain finally comes | Ohio BEEF Cattle Letter 

Drought Stressed Corn for Corn Silage | Ohio BEEF Cattle Letter 

Drought, an early harvest, and fall herbicide applications | Agronomic Crops Network 

Dry Conditions in Corn & Stalk Quality Concerns | Agronomic Crops Network 

Still Be Mindful About Fall Armyworm, Especially in Forages and Turf | Agronomic Crops Network 

USDA Farm Service Agency (FSA) Has Assistance Programs for Ohio Farm Operations Impacted by Drought | Farm Office 

2024 Ohio Farm Custom Rates Released

(This article originally posted at 2024 Ohio Farm Custom Rates Released | Ohio Ag Manager (osu.edu))

Farming is a complex business and many Ohio farmers utilize outside assistance for specific farm-related work. This option is appealing for tasks requiring specialized equipment or technical expertise. Often, having someone else with specialized tools perform tasks is more cost effective and saves time. Farm work completed by others is often referred to as “custom farm work” or more simply, “custom work”. A “custom rate” is the amount agreed upon by both parties to be paid by the custom work customer to the custom work provider.

Custom rates increased for the majority of field operations in 2024 as compared to surveyed rates in 2022 but the increases did vary by operation. Examples include an increase of 6% for Planting Corn (30 Inch Rows with Fertilizer Application), 5.6% for Harvesting Corn (Combine, Grain Cart, Haul Local to Farm), 21% for Spraying (Self-Propelled Sprayer, Crop Protection Chemicals) and 24% for Field Cultivator.

New field operations in this year’s survey and summary include drone/UAV application and cover crop seeding.

Ohio Farm Custom Rates

Click here for PDF of the 2024 Ohio Farm Custom Rates

The “Ohio Farm Custom Rates 2024” publication reports custom rates based on a statewide survey of 333 farmers, custom operators, farm managers, and landowners conducted in 2024. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and labor for the operation.

Some custom rates published in this study vary widely, possibly influenced by:

  • Type or size of equipment used (e.g. 20-shank chisel plow versus a 9-shank)
  • Size and shape of fields
  • Condition of the crop (for harvesting operations)
  • Skill level of labor
  • Amount of labor needed in relation to the equipment capabilities
  • Cost margin differences for full-time custom operators compared to farmers supplementing current income

Some custom rates reflect discounted rates as the parties involved have family or community relationships. Discounted rates may also occur when the custom work provider is attempting to strengthen a relationship to help secure the custom farmed land in a future purchase, cash rental or other rental agreement. Some providers charge differently because they are simply attempting to spread their fixed costs over more acreage to decrease fixed costs per acre and are willing to forgo complete cost recovery.

Charges may be added if the custom provider considers a job abnormal such as distance from the operator’s base location, difficulty of terrain, amount of product or labor involved with the operation, or other special requirements of the custom work customer.

The data from this survey are intended to show a representative farming industry cost for specified machines and operations in Ohio. As a custom farm work provider, the average rates reported in this publication may not cover your total costs for performing the custom service. As a customer, you may not be able to hire a custom service for the average rate published in this factsheet.

It is recommended that you calculate your own costs carefully before determining the custom rate to charge or pay. It may be helpful to compare the custom rates reported in this fact sheet with machinery costs calculated by economic engineering models available online. The following resources are available to help you calculate and consider the total costs of performing a given machinery operation.

  • Farm Machinery Cost Estimates, available by searching University of Minnesota.
  • Illinois Farm Management Handbook, available by searching University of Illinois farmdoc.
  • Estimating Farm Machinery Costs, available by searching Iowa State University agriculture decision maker and machinery management.

Volatility in diesel price may sometimes cause concern for custom rate providers that seek to cover all or most of the costs associated with custom farm operations. The approximate price of diesel fuel during the survey period (January – April 2024) ranged from $3.20 – $3.50 per gallon for off-road (farm) usage. As a custom farm work provider, if you feel that your rate doesn’t capture your full costs due to fuel price increases you might consider a custom rate increase or fuel surcharge based on the increase in fuel costs.

The complete “Ohio Farm Custom Rates 2024” publication is available online at the Farm Office website: https://farmoffice.osu.edu/farm-management/custom-rates-and-machinery-cost

 

Author information:

Barry Ward (Leader, Production Business Management, Ohio State University Extension, Agriculture and Natural Resources), Eric Richer (Field Specialist, Farm Management, Ohio State University Extension, Agriculture and Natural Resources), John Barker (Extension Educator, Agriculture/Amos Program, Ohio State University Extension Knox County) and Amanda Bennett (Extension Educator, Agriculture & Natural Resources, Ohio State University Extension Miami County)

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The Status of Spring in Three Charts

Three quick charts to help quantify the status of spring near Zanesville, OH:

Here I show growing degree days as measured by the Ohio State University Extension Growing Degrees Calculator.  Growing Degree Days are a measure of activity of plants and insects during a growing season.  Typically growing degree days are limited in February and March.  Growing degree day calculators only count temperatures above a base threshold (usually 50F) and often below a maximum threshold (often 86F).  In brief, the growing degrees accumulated so far in 2024 are above average, but we can see that last year was even higher.

The National Phenology Network measures the development of indicator plants (lilac clones) across the United States.  Current reports show these plants are leafing out up 10-20 days early in regions south of Ohio and just creeping into the southern Ohio region.

Soil temperatures at the Eastern Ohio Agricultural Research Station remain below 50F. It is typically to see soil temperatures fluctuate higher and lower through March and often well into April, depending on overall warming and cooling trends.  While air temperature can be quite warm, soil temperature determines crop and plant progress like seed germination and early crop development.  We often want steady temperatures above 50F, and or even 60F, for optimal conditions.

Farmer and Farmland Owner Income Tax Webinar

Are you a farmer or farmland owner wanting to learn more about the recent tax law issues? If so, join us for this webinar on Friday, December 15th, 2023 from 10am to noon. This webinar is a part of our Farm Office Live Series and serves as our Farm Office Live! Webinar for December. To register for this webinar go to: https://go.osu.edu/register4fol

This webinar will focus on issues related to farmer and farmland owner income tax returns as well as the latest news on CAUV and property taxes in Ohio and the big changes to the Ohio Commercial Activity Tax (CAT). This two-hour program will be presented in a live webinar format via Zoom by OSU Extension Educators Barry Ward, David Marrison and Jeff Lewis along with Purdue faculty member Dr. Michael Langemeier. Individuals who operate farms, own property, or are involved with renting farmland should participate.

Topics to be discussed during this webinar include (subject to change based on tax law change):

  • Economic Outlook

  • Depreciation Update

  • Employee vs. Independent Contractor

  • Corporate Transparency Act/Beneficial Owners Information Reporting

  • 1099-K Changes

  • Charitable Remainder Trusts

  • Basis Allocation Land Acquisition – Allocating Basis to Residual Fertility for Future Deductions

  • Defining Farm Income to Avoid Paying Estimated Tax

  • Keeping an Eye Forward on Estate/Gift Tax Limitation

  • Reminder – Keeping an Eye on Tax Cuts and Jobs Act Provisions Sunsetting After 2025 Tax Year

  • Ohio Tax Update (CAUV/Property Tax Update, CAT Changes, Beginning Farmer Tax Credit, Ohio Tax Law Interpretation – Ohio Supreme Court Issues New Ruling)

  • Indiana Tax Update

To register: https://go.osu.edu/register4fol

For more information, contact Barry Ward at ward.8@osu.edu or Jeff Lewis at lewis.1459@osu.edu

Updates from around OSU Extension

Harvest Delays – Light vs. Temperature | Agronomic Crops Network 

Harvest Complete? It’s Time To Assess SCN Levels In Your Fields! | Agronomic Crops Network 

2023 Ohio Soybean Performance Trials: Results For All Trial Locations | Agronomic Crops Network 

Presynchronization and Improving Fertility of Beef Cows | Ohio BEEF Cattle Letter 

Why is This Time Different? | Ohio BEEF Cattle Letter 

The Cost of Money | Ohio BEEF Cattle Letter 

Time to Plan a Winter Feeding Program | Ohio BEEF Cattle Letter 

Living on a Few Acres: Sheep and Goat Production | OSU Sheep Team 

Lambing and Kidding Assistance | OSU Sheep Team 

An Environmental Law Harvest | Farm Office 

New law limits who can own agricultural land in Ohio | Farm Office 

New Publication Discusses Wills and Trusts | Farm Office 

Announcing our “Planning for the Future of Your Farm” Fall and Winter Workshops | Farm Office