“Improving Your Grain Marketing Plan” Workshops to be Held

Chris Bruynis, Ag & NR Extension Educator

 

Do you want to do a better job of pricing your corn and soybeans? Is grain marketing a confusing and daunting task? If so, this workshop is for you!

Ohio State University Extension is offering a three-session workshop focused on helping farmers become better grain marketers. Participants will have a better understanding of risk, marketing tools, and the development of written marketing plans. These workshops are funded through a North Central Risk Management Education Grant and being offered in six locations throughout Ohio. Additional information can be found at http://go.osu.edu/grainplan.

Participants will learn to identify their personal risk tolerance and their farm’s financial risk capacity. Both of these are important in developing a successful grain marketing plan. Participants will also learn how crop insurance products effect marketing decisions and effect risk capacity. Grain marketing consists of understanding and managing many pieces of information. Information on the different grain marketing contracts will be presented. These include basis, hedging, cash, futures, and option contracts. Additionally, participants will be provided an example of a grain marketing plan and the fundamental principles that should be included.

The courses will be offered on three consecutive Tuesdays, two locations each time. Programs in Paulding and Henry Counties will start January 8, 2019. The Fayette and Champaign County programs will commence on January 22, 2019. The final programs will be in Miami and Darke Counties starting on January 29, 2019. For specific times and locations, as well as program registration instruction, go to http://go.osu.edu/grainplan and select the county you plan to attend. Cost for the program is $45.00 for the first registration and $60.00 for two registrations from the same farm business. Included in registration are the workshop notebook and meals/refreshments (depending on location).

To request additional information or have questions answered, contact Amanda Bennett at 937-440-3945 or at bennett.709@osu.edu

 

Farm Tax Update to Be Held on January 17 in New Philadelphia, Ohio

by: Chris Zoller, Extension Educator

OSU Extension in Tuscarawas County is pleased to be offering a Farm Tax Update on Thursday, January 17 from 1 p.m. to 2:30 p.m. p.m. at the OSU Extension office, 419 16th St. SW, New Philadelphia, Ohio.  OSU Extension Educator David Marrison will share details on the “Tax Cuts & Jobs Act of 2017” and its impact on farm taxes.  It is not business as usual in the world of farm taxes.  Learn more about the changes to farm machinery depreciation, like-kind exchanges, and more about the new Section 199A deduction for Qualified Business Income.  This program is free & open to the public!  However, courtesy reservations are requested so program materials can be prepared. Call the Tuscarawas County Extension office at 330-339-2337 to RSVP or for more information.

 

 

Farm Succession Workshop to Be Held in Celina

by: Denny Riethman, Extension Educator

A workshop on farm transition and succession will be held 9:30 a.m.-4 p.m. January 30, 2019, at Romer’s Catering at Westlake, 1100 S. Main St., Celina. This event is designed to help families develop a succession plan for their farm business, learn ways to transfer management skills and the farm’s business assets from one generation to the next and learn how to have conversations about the future of one’s farm. Attendees are encouraged to bring members from each generation to the workshop. Featured speakers will include David Marrison, OSU associate professor; extension educator, attorney Robert Moore with Wright & Moore Law Co., Peggy Hall, OSU assistant professor and an attorney in agricultural law; and Denny Riethman, Mercer County OSU Extension educator. Registration is limited to the first 60 people. The cost is $20 per person and $30 per couple. The registration deadline is January 23. Contact the Mercer County OSU Extension Office at 419-586-2179 to register.

Topics covered during the workshop will include:

 • key questions to answer when planning for the future of the family farm business.  

• family communication in the farm-transition process.

• analyzing the family farm business/keeping the business competitive into the future. 

• providing income for multiple generations.

 • developing the next generation of farm managers

• farm succession with multiple offspring and family members: fair versus equal.

• retirement strategies.

• preparing for the unexpected.

• strategies to get farm and family affairs in order.

• analyzing risk in today’s world.

• long-term health-care issues and costs.

• farm business structures and their role in estate and transition planning.

• estate and transfer strategies.

• buy/sell agreements.

• trusts and life insurance.

• tax implications of estate and transition planning.

• information needed by an attorney

 

 

2019 Wayne County Farm Financial Management School

by Rory Lewandowski, Extension Educator-Wayne County

Many sectors of the commercial agriculture economy are facing very thin to non-existent profit margins.  In these situations, knowing your financial position and the cost of production of various enterprises is critical to making financial decisions and charting a course for the future.

A 6-evening farm financial management school (FFMS) is scheduled for Wednesday evenings in January and February in Wayne County beginning the evening of January 16 and running consecutively through February 20.  The 2019 FFMS will focus on teaching participants how to develop and use core farm financial documents and statements.

The school will use presentations, class discussion, group work, case farm examples and hands-on activities to teach participants how to assemble and use essential farm financial documents.  Participants will learn how to put together and use financial documents to measure their current farm financial situation, track expenses and cash flow, make decisions to help improve or maintain the financial situation, and work more effectively with Ag lenders.  Topics covered over the 6-week school include: mission statements, balance sheets, cost of production, family living expense, farm income statements, farm cash flow statements, enterprise budgets, benchmarking, financial standards/ratios, record keeping, and working with Ag lenders.  Each participant will receive a 3-ring binder notebook with materials and handouts from each session.

The 2019 FFMS will meet in the commissioners meeting room located in the upper level of the Wayne County Administration Building in Wooster.  A light meal will be available each evening at 6:30 pm and class instruction will begin at 7:00 pm and conclude by 9:30 pm each evening.  The registration cost is $50/person or for up to three people from the same farm business.  Sponsorships provided by Farm Credit Mid-America, Farmers National Bank, Wayne Savings Community Bank and Farmers State Bank are helping to cover some of the program expenses. Pre-registration is requested to the Wayne County Extension office at 330-264-8722 or by email to ferencak.2@osu.edu by Friday, January 11.  A program flyer that includes a registration form is available on-line at http://go.osu.edu/2019FFMS.

Central Ohio Precision Ag Symposium

by: John Barker, Extension Educator, Knox County

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 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.

 

Farm Tax Issues- What Tax Reform Means for Farmers

Originally Published in Farm & Dairy- December 6, 2018.

By: David L. Marrison, Coshocton County Ag & NR Extension Educator- marrison.2@osu.edu

The goal of last year’s Tax Cuts and Jobs Act was to simplify taxes.  While simplifications were made, I would argue that farm taxes have become more difficult.  There have been major changes to equipment depreciation, like kind exchanges, and a brand new Qualified Business Income deduction. 

I know many tax preparers are pulling their hair out trying to get a handle on all these changes.  My advice to farmers is to make sure to communicate with your tax preparer before the end of the year to see how these changes may impact your 2018 taxes.

Today, I would like to provide a brief overview of the changes which farmers will want to have on their radar.

Depreciation- Tax reform made some significant changes to how farmers depreciate their farm business property.  First, the depreciation recovery period for new farm equipment and machinery placed into service after December 31, 2017 has been shortened from seven to five years.  However, used farm equipment, grain bins, and fences will keep their current depreciation life of 7 years. 

The method to calculate depreciation is also changing as any property used in a farming business and placed in service after Dec. 31, 2017, will now use the 200 percent declining balance method versus the 150-percent declining balance method. However, farmers can elect out of the use of the 200 percent method. 

For farmers wishing to accelerate depreciation, Section 179 and Bonus Depreciation are still options which can be used.  Bonus depreciation has been moved back up to 100% from 40% and the limits on Section 179 expensing has been increased to $1 million dollars for 2018.  Using these accelerated depreciation methods can be tricky so make sure your tax accountant helps you determine if they should be used or not.

Like-Kind Exchanges– Another wrinkle which will impact farmers is the elimination of the Section 1031 like-kind exchange for personal property like farm equipment.  It does still allow for a like-kind of exchange of real property such as land.

Previously the gains or losses realized on the trade-in of farm equipment was generally deferred.  Bottom line is that the elimination of the like-kind exchange treatment for equipment means that farmers who trade in a piece of equipment will most likely now have a reportable tax event.

We would recommend that farmers consult with their tax professional before they buy equipment as it could have tax implications.  Your tax accountant can help you analyze the purchase and may be able to offset the gain by using accelerated depreciation on the new piece of equipment. Definitely more paperwork. 

Qualified Business Deduction– Farmers will also need to talk to their accountant about the new Section 199A Deduction or Qualified Business Income Deduction.  This new deduction was added due to the reduction in taxes for C-Corporations.  Previously C-Corporations could be taxed at a rate up to 35%.  The tax reform legislation set a flat rate of 21% for all C-Corporations. 

The reduced flat rate was only for C-Corporations so legislators had to account for other business entities like Sole-Proprietorships, Partnerships, S Corporations, and LLCs who could have still been subject to a maximum tax rate of 37%.

This led to the development of the Qualified Business Income (QBI) Deduction. This deduction allows for a deduction of up to 20% of qualified business income.  There are a lot of moving parts and limitations to this deduction so again it is imperative to talk to your tax accountant.  This is an additional wrinkle for farmers who sell their milk or grain to cooperatives as it will trigger an additional calculation. 

There is also a lot of discussion whether farm rental income qualifies for QBI which could impact landlords and their tax returns.  All this is clear as mud to most tax preparers and we are waiting for guidance from the IRS.  Bottom line is that farm taxes will be harder not easier to file. 

Help– OSU Extension is helping farmers and tax preparers understand these new tax changes.  Local Extension offices are hosting educational seminars and we will also be offering tax webinars for your convenience.  We encourage you to check out the Ohio Ag Manager Website at http:ohioagmanager.osu.edu for updates on these events.  In addition, our team will be writing more in-depth articles about each of these changes.

Upcoming OSU Extension Sponsored Tax Updates:

2018 Ag and Natural Resources Income Tax Issues Webinar

Monday, December 17, 2018

9:00 a.m. – 3:00 p.m.

Webinar.   Can also be viewed at one of 6 regional sites: Auglaize, Clermont, Miami, Putnam, Wayne and Wyandot counties.

For tax professionals who represent farmers or for farmers looking for in-depth review of tax legislation changes.

Registration, which includes the workbook, is $150 if received or entered on-line by December 6. After December 6, registration is $200.

For more information contact Julie Strawser at 614-292-2433 or Strawser.35@osu.edu

Farmer & Farmland Owner Income Tax Webinar

Monday, January 7, 2019

10:00 – 12:00 noon

$35 per person

Register at go.osu.edu/FarmerTaxWebinar

For more information contact Julie Strawser at 614-292-2433 or Strawser.35@osu.edu

 Farm Tax Update:

Thursday, January 17, 2018 from 1:00 to 3:00 p.m.

Tuscarawas County Extension Office

Session is being held to help farmers understand the changes to farm taxes.

No registration fee.

Call 330-339-2337 for more information or to register

 

 

Farm Management Retreat Levels 1 and 2 Offered

by: Amanda Douridas & Amanda Bennett-OSU Extension Educators

Female farmers, whether farming on their own or in a partnership, realize the importance of the business side of farming. Annie’s Project provides education and a support network to enhance business skills of women involved in all aspects of agriculture.

Annie spent her lifetime learning to be an involved farm business partner with her husband. Annie’s life experiences inspired her daughter, a university Extension agent, to create a program for women living and working in the complex, dynamic agriculture business environment. Annie’s Project fosters problem solving, record keeping, and decision-making skills in farm women.

At an upcoming weekend retreat, women will receive training in five areas of agricultural risk management: financial, marketing, production, legal, and human resources. Most importantly women are able to network and develop relationships with other women in agriculture.

Level 2 will dive deeper into these risk areas with many working sessions allowing participants to work on specific plans for their farms.

Past participants have had this to say about the program:

“I changed my mind about how to approach communication with my in-laws as business partners.”

“I have gained tools to help improve management of our farm and insight on how to communicate the resources to other members of the farm.”

“I appreciated getting to meet others with a shared interest.”

“I encourage any woman to attend one of these great programs!”

The retreat will be Jan 11-13 at Western Buckeye Christian Camp, Kirkmont Center, Croft House 6946 County Road 10, Zanesfield, OH 43360. The cost is $130 per person and includes all lodging, materials and meals. The registration deadline is December 31. For questions about this retreat, please contact Amanda Douridas at Douridas.9@osu.edu or 937-484-1526.

Registration forms can be found at http://go.osu.edu/agevents.

Farm Tax Update to Be Held on December 10 in Coshocton, Ohio

OSU Extension in Coshocton County is pleased to be offering a Farm Tax Update on Monday, December 10, 2018 from 7:00 to 8:37 p.m. at the Coshocton County Services Building – Room 145 located at 724 South 7th Street in Coshocton, Ohio.

OSU Extension Educator David Marrison will share details on the “Tax Cuts & Jobs Act of 2017” and its impact on farm taxes. It is not business as usual in the world of farm taxes. Learn more about the changes to farm machinery depreciation, like-kind exchanges, and more about the new Section 199A deduction for Qualified Business Income.

This program is free & open to the public! However, courtesy reservations are requested so program materials can be prepared. Call the Coshocton County Extension at 740-622-2265 to RSVP or for more information.

 

Small Farm & New Farm College Programs to be Held

By Tony Nye, Extension Educator

Are you a small farm landowner wondering what to do with your acreage? Are you interested in exploring options for land uses but not sure where to turn or how to begin? Have you considered adding an agricultural or horticultural enterprise but you just aren’t sure of what is required, from an equipment, labor, and/or management perspective? Are you looking for someplace to get some basic farm information? If you or someone you know answered yes to any of these questions, then the Ohio State University New and Small Farm College program may be just what you are looking for.

The Ohio State University New and Small Farm College is an 8 session short course that will be held one night a week. The 2019 Ohio New and Small Farm College program will be held in three locations across the state including:

Miami Valley CTC, West Building, Room 179, 6800 Hoke Road, Englewood, OH 45315. Classes will be held on Tuesdays beginning January 8 and concluding on February 26, 2019. Inclement weather makeup date will be March 5. Contact the Montgomery County Extension Office at 937-224-9654.

Vinton County area at the Community Building, 31935 State Route 93, McArthur, OH 45651. Classes will be held on Tuesdays beginning January 15 and concluding March 5, 2019. Inclement weather makeup will be March 12. For more information, contact Vinton County Extension at 740-596-5212.

Adams County area at the North Adams High School, 96 Green Devil Drive, Seaman, OH 45679. Classes will be held on Wednesdays beginning January 16 and concluding March 6, 2019. Inclement weather makeup date will be March 13.  For more information, contact Adams County Extension at 937-544-2339.

All colleges will start each evening at 6:00 PM with a light dinner with the nightly presentations beginning at 6:30 Pm and concluding at 9:00PM.

Topics that will be covered in the Small Farm College course include: Getting Started (goal setting, resource inventory, business planning), Appropriate Land Use -Walking The Farm, Where to Get Assistance, (identifying various agencies, organizations, and groups), Natural Resource Management including soils, ponds, woodlands and wildlife, Legal Issues, Insurance, Business Structure, Finances & Record Keeping, and Marketing Alternatives, Crop and Horticultural Production Options, Animal Production Options,

The cost of the course is $150 per person, $100 for an additional family member. Each participating family will receive a small farm college notebook full of the information presented in each class session plus additional materials. Registrations are now being accepted. For more details about the course and/or a registration form, contact Tony Nye, Small Farm Program Coordinator 937-382-0901 or email at nye.1@osu.edu.

 

Agronomy and Farm Management Podcast

by: Amanda Douridas and Elizabeth Hawkins

Stay on top of what is happening in the field and the farm office as Amanda Douridas and Elizabeth Hawkins interview experts in agronomy and farm management. Hosted by Ohio State University Extension, this podcast takes a bi-monthly dive into specific issues that impact agriculture, such as: weather, land value, policies, commodity outlooks, and more.

This podcast began in May 2018 and has a great library of podcasts to choose from. This winter, we will feature some of the Ask the Expert interviews that occurred during Farm Science Review on Farm Management topics. Catch up on the ones you missed during the show.

Subscribe through iTunes at http://go.osu.edu/iTunesAFM or Stitcher at http://go.osu.edu/StitcherAFM to have the newest episodes added to your playlist. Stay up to date with us on Facebook @AFMPodcast and Twitter @AFM_Podcast.