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Showing posts from December, 2019

What was new in farm transition and estate planning in 2019?

By Megan Roberts, Extension Educator It has been a quiet year for major changes in farm transition and estate planning at both the federal and state of Minnesota level. Nonetheless, there are still several updates to discuss. Federal estate exclusion is increased for inflation After the major, far-reaching 2018 federal tax changes from the Tax Cuts and Jobs Act of 2017, 2019 was remarkably less dramatic for federal changes. The federal lifetime gift and estate exclusion remains at the higher $11 million (indexed for inflation). In 2019, the lifetime exclusion is $11.4 million per person. In November 2019, the IRS announced the lifetime exclusion is $11.58 million per person in 2020. [1] Although the federal exclusion remains very high and federal tax consequences of gifting or inheritance are likely minimal or non-existent for most farms, farmers should not interpret this as a reason to put off estate planning. First, the new higher federal lifetime exclusion of $11

Farm Service Agency and Extension Launch 2018 Farm Bill Crops Education Meetings

Starting this month, the Farm Service Agency and University of Minnesota Extension will begin a series of free education meetings to help crop producers understand decisions regarding the 2018 Farm Bill reauthorization of ARC and PLC programs. The seminars are offered all across the state, being held in 46 different counties and will be led by Extension educators and FSA; no registration is required. Details are available here or by going to . The ARC Program is an income support program that provides payments when actual crop revenue declines below a specified guarantee level. The PLC Program provides income support payments when the effective price for a covered commodity falls below its effective reference price. All farm producers with interest in the cropland must make a farm program election by March 15, 2020. This election will apply to the farm for 2019 and 2020. Crops grown in Minnesota that are covered by this program include: corn, soybeans, wh