By David Marrison, Peggy Hall, and Jeffrey Lewis
Planning For Future Farm Webinar
OSU Extension will host a virtual three-part “Planning for the Future of Your Farm” workshop on February 15, 22, and March 1, 2021, from 6:30 to 8:30 p.m. via Zoom. This workshop will challenge farm families to actively plan for the future of the farm business. This workshop is designed to help farm families learn strategies and tools to successfully create succession and estate plan that helps you transfer your farm’s ownership, management, and assets to the next generation. Learn how to have crucial conversations about the future of your farm. Continue reading
by: Barry Ward, Leader, Production Business Management/Director, OSU Income Tax Schools
Congress passed the Consolidated Appropriations Act (CAA), 2021 on Monday, December 21, 2020, which was signed by the President on December 27th. The CAA funds the government through September 30, 2021, implements COVID-19 relief provisions, and extends a number of expiring tax provisions. The $2.3 trillion bill provides $900 billion in COVID-19 relief. This article highlights key provisions for farm-related issues from several Acts within the CAA’s 5,593 pages.
Additional 2020 Recovery Rebates
“Economic Impact Payments”
The Act provides for “additional 2020 recovery rebates for individuals.” The additional recovery rebate credit is $600 for “eligible individuals” or $1,200 for “eligible individuals” filing a joint return. “Eligible individuals” are entitled to a $600 credit for each “qualifying child”. (Generally includes dependent children under the age of 17.) Phaseouts apply to higher-income taxpayers. Continue reading
As we march into 2021, we want to share some opportunities for beef cattle producer education coming up this winter. While we’d much rather be in person, this year we are going to offer virtual programming. Additional information can be found at go.osu.edu/2021beefschool.
2021 Cow-Calf Outlook Meeting – January 26, 6.30 p.m. (Flyer) (Register Here)
Dr. Kenny Burdine, University of Kentucky Livestock Marketing Specialist
2021 Ohio Cattle Feeding Webinar – February 24, 6:00 p.m. (Flyer) (Register Here)
Risk Management Livestock Risk Protection and Livestock Gross Margin Insurance – Justin White, Hudson Insurance
Feedlot Ventilation Requirements – Jason Hartschuh, OSU Extension Crawford County
2021 Ohio Cow-Calf Management Schools Webinars (Register Here) One Registration Link for all Sessions.
- 1/18/2021: Getting Started: Making Hay for Beef Cattle (Reviewing Forage Fertility – Jason Hartsuch; New Seeding Species Selection – Christine Gelley)
- 1/25/2021: Addressing Hay Shortfalls (Annual Forage Options – Allen Gahler; Baleage Do’s and Don’ts – Jason Hartschuh)
- 2/01/2021: Hay! Now What? (Forage Analysis – Ted Wiseman; Forage Storage 101 – Garth Ruff)
- 2/08/2021: Cow-Calf Management: Breeding Season Considerations (Managing the Breeding Season – Alvaro Garcia-Guerra; EPD Update: Breeding for Cow Longevity – John Grimes)
- 2/15/2021 Managing Reproduction (Semen Handling – Dean Kreager; Pregnancy Checking – Allen Gahler)
- 2/22/2021: Improving Profits (Making Cow Culling Decisions – Dean Kreager; Maximizing Feeder Calf Value – Garth Ruff)
Beef Sire Selection for the Dairy Herd Webinar – March 10, 2021, 12:00 p.m. (Flyer) (Register Here)
Presenter: Allen Gahler, OSU Extension Sandusky County
Both the Paulding County Extension Office and the Statewide Extension Office will be hosting a series of online Farm Bill Meetings. Our Paulding County meeting will include information from the local FSA Office with specific county information and updates. The statewide series will have much of the same information without our local contacts. See the statewide flyer listed here: 2021 ARC.PLC Flyer Statewide
For the local Paulding County meeting, it will be held via ZOOM on Friday, January 29 from 7:30 AM until 8:30 AM during the monthly Paulding County Virtual Coffee Shop. The registration is located at go.osu.edu/pauldingFB21. Registration is required. I will be recording this session and placing it on the Paulding County Extension YouTube Channel.
A few reminders and questions I have received in the office:
- With the 2018 Farm Bill participants now have the election to choose programs yearly. The deadline for signing up for the calendar year 2021 program is March 15. (This now aligns with the crop insurance deadline.)
- The opportunity to update the PLC yield on your base acres was only available last year. This is not an option for 2021. This additionally usually required the signature of the landowner and this is not the case for the program elections of PLC, ARC-CO, or ARC-IC in 2021. FSA in Paulding County will be mailing contracts to those producers who elected to sign a 5-year contract. These will need to be signed and returned.
- In the calendar year 2020, one was signing up for both the 2019 and 2020 program by March 15, 2020. This decision for 2021 will be made by March 15, 2021, and is more difficult to predict payment potential. The marketing year doesn’t start until after September 1, 2021, for corn and soybeans. Also, the PLC and ARC-CO programs are based upon base acres on the farm not what the producer is planting. ARC-IC is based upon what the producer is planting.
- Due to the prevent plant season and delay of the 2018 Farm Bill, many producers had the opportunity in 2020 to elect program choices of ARC-CO, PLC, and ARC-IC for the 2019 and 2020 crop year. With the heavy number of preventing plant acres in NW Ohio in 2019, many farms elected ARC-IC. This program may or may not be attractive for the 2021 calendar year (election producers are making currently) based on different scenarios.
- Remember payments are made for the following year for the current program year (i.e. – in September 2021, producers will receive payments for the 2020 election choices)
- If a producer does not make an election by March 15, the decision will stay the same as the prior-year as long as a contract is signed and approved. Again ARC-IC may not be your best option.
- These programs are another form of risk management on the farm. I recommend that producers are not using this as a guaranteed payment and looking at it as a gift if payment is received. With our current high prices, I would not necessarily bank on a payment.
- If a producer is looking at the Supplemental Coverage Option (SCO) – Crop Insurance. The only Farm Bill program that will allow you to purchase this type of insurance is electing the PLC program option.
Locally from the Paulding County FSA Office.
- The FSA Office is still closed to the public but there are many options for getting paperwork for the Farm Bill or other programs turned in.
- The office is in a bit of a transition as director Phil Lautenschlager has taken the director position in Hardin County. Left in the office full time is Kaye Brofford (firstname.lastname@example.org)and Neil Beining (email@example.com) and part-time is Kasey Mills (firstname.lastname@example.org).
- If the producer does not initiate a call to the FSA to make Farm Bill changes the program will stay with what was elected in 2020.
- Please do not wait until the last minute (March 15 to sign up for the Farm Bill programs).
- The phone number for the FSA office is (419)399-3841, choose option 2 for FSA Office.
The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) today announced that signup for the Quality Loss Adjustment (QLA) Program will begin Wednesday, Jan. 6, 2021. Funded by the Further Consolidated Appropriations Act of 2020, this new program provides assistance to producers who suffered eligible crop quality losses due to natural disasters occurring in 2018 and 2019. The deadline to apply for QLA is Friday, March 5, 2021.
Eligible crops include those for which federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage is available, except for grazed crops and value loss crops, such as honey, maple sap, aquaculture, floriculture, mushrooms, ginseng root, ornamental nursery, Christmas trees, and turfgrass sod. Continue reading
Agricultural producers and private landowners interested in the Conservation Reserve Program (CRP) can sign up for the popular program beginning today, Jan. 4, 2021, until Feb. 12, 2021. The competitive program, administered by USDA’s Farm Service Agency (FSA), provides annual rental payments for land devoted to conservation purposes.
Through CRP, farmers and ranchers establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Farmers and ranchers who participate in CRP help provide numerous benefits to their local region and the nation’s environment and economy. CRP general signup is held annually and is competitive; general signup includes increased opportunities for wildlife habitat enrollment through the State Acres For Wildlife Enhancement (SAFE) initiative. Continue reading
2021 Precision U Flyer
2021 Precision U: Tackling Spring Operations with Reduced Working Days
- January 5 – Gambling with Planting Decisions – Dr. Aaron Wilson (Ohio State University Extension) and Dr. Bob Nielsen (Purdue University)
- January 12 – Improving Fertilizer Efficiency with the Planter Pass – Matt Bennett (Precision Planting Technology) and Dr. John Fulton (Ohio State University)
- January 19 – Pre-season Crop Protection Decisions – Dr. Mark Loux and Dr. Scott Shearer (Ohio State University)
- January 26 – Sprayer Technology to Improve Field Performance – Dr. Joe Luck (University of Nebraska-Lincoln)
There is no cost to register for Precision University, but registration is required. CCA CEUs will be offered at each session. For more information or to register, visit http://go.osu.edu/PrecisionU.
By: Barry Ward, Director, OSU Income Tax Schools & Leader, Production Business Management
Do you need a resource to answer those tough farm tax questions? If so, you can access the Farmer’s Tax Guide (IRS Publication 225) online at https://www.irs.gov/pub/irs-pdf/p225.pdf The 2020 Farmer’s Tax Guide explains how federal tax laws apply to farming. This guide can be used as a guide for farmers to figure taxes and complete their farm tax returns.
The explanations and examples in this publication reflect the Internal Revenue Service’s interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. However, the information given does not cover every situation and is not intended to replace the law or change its meaning.
Some of the new topics for the 2020 tax year which are included in this publication are: Tax treatment of Coronavirus Food Assistance Program (CFAP) payments, Payroll Protection Program (PPP) Loans and Forgiven Debt, Increased section 179 expense deduction dollar limits, COVID-19 related employment tax credits, and other tax relief, Redesigned Form W-4 for 2020, New Form 1099-NEC, and much more.
Hardcopies of the 2020 Farmer’s Tax Guide are also available at select county OSU Extension offices.
The Rural Tax Education Site has additional resources for agriculturally related income and self-employment tax information that is both current and easy to understand: https://ruraltax.org/
by: Barry Ward, David Marrison, Peggy Hall, Dianne Shoemaker – Ohio State University Extension
“Farm Office Live” returns virtually this winter as an opportunity for you to get the latest outlook and updates on ag law, farm management, ag economics, farm business analysis, and other related issues from faculty and educators with the College of Food, Agriculture and Environmental Sciences at The Ohio State University.
Each Farm Office Live will start off with presentations on select ag law and farm management topics from our experts and then we’ll open it up for questions from attendees on other topics of interest. Viewers can attend “Farm Office Live” online each month on Wednesday evening or Friday morning or can catch a recording of each program. The full slate of offerings for this winter:
- January 13th, 7:00 – 8:30 pm
- January 15th, 10:00 – 11:30 am
- February 10th, 7:00 – 8:30 pm
- February 12th 10:00 – 11:30 am
- March 10th, 7:00 – 8:30 pm
- March 12th 10:00 – 11:30 am
- April 7th, 7:00 – 8:30 pm
- April 9th, 10:00 – 11:30 am
Topics to be addressed this winter include:
- Outlook on Crop Input Costs and Profit Margins
- Outlook on Cropland Values and Cash Rents
- Outlook on Interest Rates
- Tax Issues That May Impact Farm Businesses
- Legal trends for 2021
- Legislative updates
- Farm business management and analysis updates
- Farm succession & estate planning updates
Who’s on the Farm Office Team? Our team features OSU experts ready to help you manage your farm office:
- Peggy Kirk Hall — agricultural law
- Dianne Shoemaker — farm business analysis and dairy production
- David Marrison — farm management
- Barry Ward — agricultural economics and tax
Register at https://go.osu.edu/farmofficelive
We look forward to you joining us this winter!
by: Mary Griffith, Chris Zoller, Hallie Williams, OSU Extension Educators
Enrollment for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2021 crop year opened in October, with the deadline to enroll and make amendments to program elections on March 15, 2021. This signup is for potential payments for the 2021 crop.
If changes are not made by the March 15th deadline, the election defaults to the programs selected for the 2020 crop year with no penalty. While it is optional to make changes to program elections, producers are required to enroll (sign a contract) each year to be eligible to receive payments. So, even if you do not change your program elections, you will still need to make an appointment at the Farm Service Agency to sign off on enrollment for the 2021 crop year by that March 15th deadline. Continue reading