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Today's Challenge is to Determine what is a Fair Farm Rental Rate for 2019

By David Bau, Extension Educator

Farmland rental rates are slow to go up in good times and slow to go down in poor times.
Based on corn and soybean prices the farm economy is in a poor time. Extension is hosting a set of workshops to help farmer and landlord determine a fair farmland rental agreement for 2019.

Landlords, farmers, and agri-business professionals should make plans to attend one of the informative meetings in January and February across Central and Southern Minnesota. These free meetings are being provided by University of Minnesota Extension. The workshops will be held weekly on Wednesdays starting January 16th in Rochester followed by Waseca, Worthington, Willmar, Morris, Farmington and finishing in Lamberton, February 27, 2019.

There will be two workshops each day at each location. The first session will start at 9:30 am followed by an afternoon session starting at 1:30 pm.  In case of bad weather, the following Thursday is the snow date for each location.  Call the f…
Recent posts

Transition Rule regarding DPAD and QBI Calculations for Producers with Sales to Cooperatives

Greetings everyone, You are receiving this email because you attended either the 2018 University of Minnesota Income Tax Short Course OR the 2018 University of Minnesota Extension Agricultural Tax Issues Course. 
This is an update that will only affect tax professionals that prepare farm tax returns.  If you do not prepare farm returns, this email will not impact you or your practice.

TheConsolidated Appropriations Act includes a transition rule for farmers who receive a cooperative payment in 2018 that is attributable to QPAI for which the old DPAD deduction was applicable. This will include any QPAI attributable to a cooperative tax year beginning before 2018. See Section 101(c)(2). With the original DPAD gone in 2018, taxpayers were left to wonder how to report such DPAD allocations. The law clarifies that such farmers will still be able to take the old DPAD deduction in 2018, as long as it is attributable to QPAI which was allowed to the cooperative for a tax year beginning before 2…

Women in Ag Network's December Feature

Our December 2018 “Women in Ag” feature is Erica Sawatzke. After working for MN Turkey Growers Association she returned to her family turkey breeding farm near Kensington, MN. I met Erica this past September when she spoke at an Ag and Animal Science Conference. I enjoyed hearing about her involvement in the family farm and passion for agriculture.

Year-End Tax Planning Webinars for Producers

The University of Minnesota Extension will be holding two, 60-minute webinars for agricultural producers. The content of these webinars will be geared toward farm operators and managers. Farm management instructors and agricultural professionals may also find the content useful. This webinar will not qualify for Continuing Professional Education (CPE) or Continuing Legal Education (CLE) hours.

Both webinars will focus on the content of the Tax Cuts and Jobs Act (TCJA) and how TCJA will affect agricultural producers in calendar year 2018.
The two webinars will be held on:  Thursday, December 13, 2018 -- 1:30 PM to 2:30 PM CST
Join webinar:
Friday, December 14, 2018 – 10:00 AM to 11:00 AM CST
Join webinar:
Tentative Topics to be covered include: Changes to tax rates, capital gains, standard deduction and personal exemptions Child Tax Credit and Kiddie Tax Charitable Contributions and Alternative Minimum Tax Elimination of Domest…

Farm Transfer and Estate Planning Attorneys

By Megan Roberts, Extension Educator

If you have not already identified an attorney to help you through the legal aspects of the farm transfer and estate process, you may be wondering how to find a qualified attorney. One possibility is to utilize online search tools from professional associations. Attorneys self-select into these organizations for specialized professional development. The following suggestions are not intended as advertising for any attorney or organization nor meant to be a referral or recommendation of any attorney.
One national professional organization associated with estate planning and elder law is the Wealth Counsel. To find members of the Wealth Council visit: Once on the site, go to the upper right of the page and click “Find a Planning Professional.” On the next page, you can enter the zip code of your mailing address and select the radius of the search up to 100 miles of your location. You may also search for attorneys by individual M…

Women in Ag Network's November Feature

By Alatheia Stenvik, Program Coordinator

This month, we continue our interview series featuring a woman involved in Minnesotan agriculture. Our November 2018 "Women in Ag Feature" is Laura Frerichs. Laura owns an organic vegetable farm with her husband. She operates a 200-member CSA program and supports other marketing channels as well. She explains her journey, struggles, and management techniques needed to become the 40-acre organic vegetable farm she operates today.

WAGN: Tell us about your career/farm. Laura: I co-own and operate a 40-acre organic vegetable farm, Loon Organics, in Hutchinson, MN with my husband, Adam Cullip and our two boys, Eli (7) and William (2). I started working on organic vegetable farms after graduating from Grinnell College in Iowa with an anthropology degree. Initially I was attracted to farming to learn more about growing my own food and considered going to work in sustainable development abroad, but thought I should get some farm experience first…

Does helping the next generation start farming improve their profit potential?

By Joleen C. Hadrich and C. Robert Holcomb

Farmers are entrepreneurs and finding the resources to start their operation can have direct implications on their financial success over time, which is the topic of the second installment of the “Top Farmer” newsletter series. Of the 334 survey respondents, 18% of the farms started independently without any help from family, 47% reported receiving help from their parents while operating their own farm independently, 25% are currently farming with family members in a partnership, and the remaining 10% used other strategies to start farming.
These statistics differ when we split the sample between the 20% most profitable and 20% least profitable farms, measured by the adjusted net farm income ratio.Thirty percent of the least profitable farms reported starting their farming operation on their own, while only 13% of the most profitable started on their own without assistance.Over half (60%) of the most profitable farms received help from their pa…