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Showing posts from January, 2017

Farm Resource Guide Available

By David Bau, Extension Educator

The Farm Resource Guide for 2017 is now available upon request at many University of Minnesota Extension County offices across the state.  This resource guide includes a variety of useful farm business management information including the following items:

Custom ratesAverage farmland rental rates by countyFlexible Rental Agreements It includes lease forms for Cash Rent and Share Rent arrangementsFarmland sales information for all counties in MinnesotaInformation on charges for custom feeding, commodity storage, leasing buildings and various bin rental rates Current information on pasture rental rates, tree timber valuesMarketing information along with recent cost trends for MinnesotaCommodity price probabilities for corn, soybeans, alfalfa hay, straw, grass hay, hogs and cattleCorn and soybean yields by county Feedlot Rule Highlights and information on Manure Agreement and Easements Examples of Manure Spreading Lease and Land Application Agreement forms

New W-2 and 1099 Deadlines

By Rob Holcomb, EA Extension Educator, Ag. Business Management University of Minnesota Extension
January 12, 2017
New for 2016, in an effort to combat identity theft, the IRS is requiring employers and business owners to file forms W-2, W-3 and 1099-MISC by January 31, 2017.  These changes were contained in the PATH Act (Protecting Americans from Tax Hikes) which was signed into law December of 2015. 
A W-2 is the form that reports wages paid to an employee.  The W-3 is a transmittal form that summarizes all the W-2s issued from a single employer. 
Form 1099-MISC is issued to individuals or entities that are not employees.   Form 1099-MISC is typically issued for rent, non-employee compensation and custom hire.  The payment threshold for issuing a 1099-MISC is $600.  The threshold is based upon the total amount paid to the individual or entity during the calendar year without regard to the number of checks or transactions.   Typically, corporations are exempt from the filing requirements …

Planning for a Successful 2017

Happy 2017! I love New Year’s. It’s the start of something brand new. The year is full of promise and opportunities. It is a fresh start.

As a general rule, I recommend that farms look at their financial records around January 1st. This helps to provide a consistent point in time for comparison. Farming is seasonal and a farmer’s finances are no different. Your checkbook after planting (June) might look very different than your checkbook after you sell harvested grain (December). By comparing the same points in time, you get a clearer picture of how you’re doing financially.

Additionally, it is wise to think about what your finances might look like in the year ahead. This is called “cash flow planning”. Simply put, it’s creating a budget for the year. You’ll look at your cash from operations, investing, and financing activities.

To do this, you’ll want to have monthly records of your income and expenses. If you use an accounting software, you can print off these records. Your banker o…

Comparing Corn and Soybean Cash Prices with Average Southern Minnesota Farmland Rental Rates

by David Bau, Extension Educator

The average cash price for corn and soybeans each calendar year since 2000 is listed in Table 1 below. Columns 2 and 3 list the average cash prices each year in Worthington for corn and soybeans. The Column 4 lists the average percent change in corn and soybean prices from the prior year. Column 5 lists the average rent paid by 1200 farmers in Southern Minnesota who are part of an Adult Farm Management Programs. Column 5 multiplies the price percent change by previous year’s actual average rents to determine the farmland rent each year. Column 7 starts with the average rent $98.31 in 2000 and then multiplies this by the corn and soybean price change (-3.21) to determine a rental rate of $95.16 for 2001. To determine the 2002 rental rate, start with the 2001 rate of $95.16 and multiply this by the price change (15.06) and to determine an average rent of $109.49 for 2002. This process was repeated to determine rentals rate through 2016. There are two que…

Five Tips for Planning for Your Future

by Betty BerningExtension Educator
It is the start of a New Year.  It’s full of promise and opportunities!  What are you going to do?  Did you make a few resolutions in your personal life?  Maybe you’ll spend more time with your family, exercise, or read more books?   
Planning in business and farming is similar to making resolutions.  Both require giving some thought to the future by identifying what you might like to do.  They both take commitment and patience.  Plans in farming, though, are often more complicated than some of the simple resolutions we make in our personal life.  Additionally, it may take longer to reach our business goals than our personal goals.  In order for a business to be successful, it is critical to have a plan in place. I’d like to offer five tips for business planning:
Take the Time to Make the Plan:  It is really easy to get caught up in daily tasks of milking cows, running errands, fixing machinery, and growing crops.  These day-to-day activities will eat …