What’s All The Talk?
DES MOINES, Iowa -- It’s that time of the year when family and friends gather and try to find things to talk about. Here are a few topics that are attracting a lot of attention on Agriculture.com.
Agriculture.com Community sections are full of hot discussions, nowadays. From grain marketing thoughts, Congressional moves on taxes, corn silage production, to the upswing in the cattle market, the conversations are flowing.
In this community, sw363535, started a lively thread titled “Optimism Is Gone”.
He says, “No marketing left to do . . . It is time to sell everything you can raise for the next couple of years while it still has some value. For a while I was feeling pretty good that grains were holding their own through this never-ending harvest. So much for that.”
That thread has received double-digit replies. It highlights the feelings farmers are struggling with, as the commodities market continues to hover at low prices.
In response, timetippingpt countered the pessimism with a rare ‘the-glass-is-half-full’ approach. He reminded farmers that there is a silver lining: “Not to bring an umbrella to your shower of tears, but a good size percentage of grain farms will increase their net worth this year. Sure, they have a balanced approach to growth, owning around 40% of what they farm, they’re cost-conscious with tight controls on toys, but indeed they will increase net worth. So, this becomes a very regional issue with very regional causes and very regional cures,” says timetippingpt.
The members in the Farm Business section are busy outlining the impact to farmers, regarding the House of Representatives’ new tax plan to eliminate Section 199.
Specifically, the Section 199 deduction (also referred to as the domestic manufacturing deduction, U.S. production activities deduction, and domestic production deduction) is a tax break for businesses that perform domestic manufacturing and certain other production activities, according to Greenwalt CPAs, Inc.
In an online explanation of the tax code, the firm states that the Section 199 deduction is allowed for both regular and alternative minimum tax for individuals, C corporations, farming cooperatives, estates, trusts, and their beneficiaries. “The deduction is also allowed at the partner, member, and owner level for a partnership, LLC, and S corporations, respectively,” Greenwalt CPAs, Inc. stated.
Clayton58 pointed out the direct detail in the tax code, as it relates to farmers. “You have to pay wages in order to utilize the section 199 deduction... mom-and-pop sole proprietorship or family partnerships are left out... so a repeal could favor the smaller farms vs. the bigger ones,” clayton58 stated.
YOUNG & BEGINNING FARMERS
In the Young & Beginning Farmers talk section on Agriculture.com, davidlnacco is asking for advice on farming on his own.
“I understand I’m going to have to have a decent amount of money saved up first and obviously I’ll need land. I’m hoping to start off with 20 to 30 acres with at least half of it good farmland. I plan on mostly growing crops. I want animals too, but mostly smaller ones like goats, poultry, rabbits. Any advice would be appreciated,” davidlnacco wrote.
In the Crop Talk community, clayton58 is working on improving starch levels in corn silage. A helpful discussion has fired up on how to help with this situation. Maybe you can provide some helpful hints.
“So I’ve been growing corn silage for a local dairy for about 10 years. Pay is by the ton, based on cash corn(grain) price. Well, now there is a new manager in place, and he is looking at starch levels, as well as other feed value indicators. They eventually want to implement price and/or bonuses based on starch levels, so my question is what are some management practices that influence starch? What can I do to make my crop more valuable to my customer? Or is it one of those things that is out of my control, and it depends on the year? Is anyone else looking at this?” clayton58 asks.
In this community, r320 sparked a double-digit response, with his comments on a recent $9.00-per-head cattle market rally.
“Up 9 bucks this week. Of course, Holstein didn’t do much. The local buyer says the people who process Holsteins also kill beef cattle, and we are in the middle of the fall cow cull season. Sigh,” r320 states.