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Southwestern Minnesota Farmland Values Increase 3.0 percent in 2018

By David Bau, Extension Educator

At the end of each year for the last twenty-four years, a survey has been conducted of farm land sales in fourteen southwestern Minnesota counties. The survey reports bare farm land sales to non-related parties for the first six months of each year. Land values had been steadily increasing until 2014.  After reaching record high prices in 2013, the upward trend was broken as prices declined in 2014 and continued down through 2017.  The trend changed to an increased in 2018.  The summary report for this survey is available at the county extension offices in Chippewa, Cottonwood, Jackson, Lac qui Parle, Lincoln, Lyon, Martin, Murray, Nobles, Pipestone, Redwood, Rock, Watonwan and Yellow Medicine Counties.  This year the increase across the fourteen counties averaged 3.9%.  Average land values had not increased since 2013 when the average SW Minnesota land prices peaked at $8,466 per acre then declined in through 2017 to $6,340 until increasing in 2018 to…
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Farm Resource Guide Available

By David Bau, Extension Educator

The Farm Resource Guide for 2019 is now available at many University of Minnesota Extension County offices across the state.  This resource guide includes a wide variety of useful farm business management information including the following items:

Custom rates: What to charge for planting etc.Average farmland rental rates by county: From two sources with projections for 2019.Flexible Rental Agreements: Examples of how they work and how they have worked in past.Lease forms for Cash Rent and Share Rent arrangements: Which you can fill in the blanks.Farmland sales information for all counties in Minnesota: Lists current average ag sales.Information on charges for custom feeding, commodity storage, leasing buildings and various bin rental rates: List various costs like leasing a dairy barn and machine storage. Current information on pasture rental rates, tree timber values: List pasture rates and timber sales.Marketing information along with recent cost tre…

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…

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

This is an update that will only affect tax professionals that prepare farm tax returns.  If you do not prepare farm returns, the following will not impact you or your practice.

The Consolidated 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 2018. No 199A deduction will be allowed for such payments.
Most cooperatives operate under a fiscal year.  The transition rule will affect farmers that did business with a cooperative with a …

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…