Income tax season is a favorite for producers near and far (note the level of sarcasm in this statement).

Managing taxable income to minimize one’s tax obligation is a goal of many business owners. However, managing taxable income as an agricultural business owner can be challenging.

Cattlemen spend countless dollars and hours in efforts to maintain and improve the productivity of their cattle. Forages, feed and other inputs are delivered to the animal in an ongoing effort to improve productivity at a variety of levels.

Profit margins are being squeezed from both directions. Prices for nearly all ag commodities are much lower than they were a few years ago, and production costs are steady or rising.

The seasoned rancher In the Nebraska Sandhills, 2006 and 2009 were both drought years, but neither of those was as severe as the drought of 2012.

An S corporation, unlike a regular C corporation, is able to avoid double taxation because it is not required to pay corporate income tax on the profits of the company. All profits and losses are passed directly to the shareholders of the company.

Section 1031 exchange refers to section number 1031 of the Internal Revenue Code. While these sales are sometimes referred to as “tax-free,” they are not. Any income taxes due might be delayed until a future date, but they must be accounted for and paid at some time.

Ranchers learn the cooperative way to survive ESA enforcement Regulations. Rules. Restrictions. For ranchers dealing with government agencies, it may feel like those are the reigning powers.

Most producers know the usual amount of rainfall in their area, but doing a soil test in the fall can help identify deficiencies before spring. Preparing the soil for seeding should come next.

What you can’t see is costing the industry millions Recently, a local cattleman when asked, “What kind of dewormer program do you use?” said, “Well, I haven’t had a strategy in a while.