Business Commons^™

One-Participant 401(K) As A Tool For Farmers And Ranchers, Jessica Groskopf, Cory Walters, Doug Nelson

Center for Agricultural Profitability

According to USDA, only 40% of farm households participate in some type of retirement account. For self-employed farmers and ranchers without full-time employees, the opportunity to invest in a One-Participant 401(k) plan is a way to (1) save money for retirement, (2) reduce taxable income, and (3) provide the potential option to borrow from the plan. This series of articles will review these features.

What is a One-Participant 401(k)?

The One-Participant 401(k)is a qualified retirement plan designed specifically for business owners with no full-time employees other than the business owners and their spouses. Visit with your financial planner and tax …

One-Participant 401(K): Saving For Retirement And Reducing Taxes, Jessica Groskopf, Cory Walters, Doug Nelson

Center for Agricultural Profitability

The adage that farmers and ranchers are often asset-rich and cash poor does indeed appear to be true! According to the United States Department of Agriculture (USDA), just forty percent of farmers contribute to a retirement plan. And because many farmers and ranchers invest profits in their business rather than take a high salary, they show little income on their tax returns. This means they will have paid less into Social Security and their benefits will be lower when they retire. This can create cash flow challenges, especially for an older generation of farm and ranch families wanting to bring …

What Happens To Your Farm Or Ranch If You Become Disabled?, Jessica Groskopf

Center for Agricultural Profitability

Estate and transition planning often focuses on what happens to the farm or ranch at the death of a key person. However, a good estate and transition plan should also include contingencies for disability. Planning for a disability is not an easy task because the severity and duration of the disability are unknown. This article offers some key items to have in place to protect you and your operation from disability.

What Did Higher Profit Cow-Calf Producers Do To Be More Profitable?, Randy Saner

Center for Agricultural Profitability

Cow-calf producers are always looking at ways to cut costs and improve profits. Looking at recent data from the University of Minnesota Center for Financial Management, FINBIN Livestock Analysis for 2022 representing cow-calf operations from Nebraska, South Dakota, and North Dakota can provide producers with some ideas on ways to improve profitability.

Western Australia’S Primary Industries: 2021-22 Economic Overview, D. Maharjan, S. Akbari, A.K. Abadi Ghadim, P. Mattingley, I. Wilkinson, J. Tan, J. Van Staden, M. Radhakrishnan

All other publications

The Western Australia’s Primary Industries: 2021-22 Economic Overview (WAPIEO) is developed by DPIRD in partnership with the Forest Products Commission.

The WAPIEO has a trade focus and provides a single source for consistent statistics and insights on observed industry trends.

Director General Statement

Western Australia’s primary industries sector is a significant contributor to the state’s economic diversification. Supported by strong international trading relationships, it is also a major export industry with around 60% of our agriculture, fisheries, forestry and food production exported to over 150 international markets.

The agriculture, fisheries and forestry industries are also significant contributors to our economy, …

2024 Nebraska Crop Budgets — A Mixed Review With Some Costs Higher, Some Lower, Glennis Mcmclure

Center for Agricultural Profitability

While field operation costs are projected higher for the 2024 Nebraska crop enterprises, some material input costs are lower than were projected for 2023. One driving force on lower cost projections for 2024 is 20% to 40% less on fertilizer prices is factored in on many budgets, and five pounds less nitrogen fertilizer was entered for a majority of the corn budgets due to continued improvement of application practices. Cost scenarios for individual producers can vary based on their timing of input purchases and price variabilities. The 84 1Nebraska crop budgets are now available online in three formats with a …

What Is Irs Section 180 And How Does It Work?, Shannon Sand

Center for Agricultural Profitability

With recent land purchases, some are asking questions to learn more about IRS Section 180 and how it may provide tax deductions in the year of purchase. Let’s explore more about this tax code.

What is this code, you may be asking yourself, and what may it have to do with the purchased ground?

How Much Nebraska Ag Land Is Owned By Foreign Entities?, Larry W. Van Tassell

Center for Agricultural Profitability

The Agricultural Foreign Investment Disclosure Act of 1973 (AFIDA) established a mandatory reporting system, overseen by the USDA, that requires foreign entities to provide information on all U.S. agricultural and non-agricultural land in which they hold an interest. “Interest” is reported as a fee interest (legal possession of both the surface and mineral rights), partial fee interest (must state percent ownership), life estate, trust beneficiary, purchase contract, or other. “Other” includes leases that are 10-years or longer. The regulations exempt foreign entities with interests solely in mineral rights and leases of less than 10 years in duration from reporting. In …

Do Only Americans Own America? Foreign Investment In Agricultural Lands In The United States, Larry W. Van Tassell

Center for Agricultural Profitability

Foreign investment in the United States, while not a new phenomenon, has recently caught the attention of the American public and members of the U.S. House and Senate after an Air Force officer raised concerns when the Fufeng Group, based in Shandong, China, purchased 300 acres of farmland 12 miles from an Air Force base in Grand Forks, North Dakota, to build a corn milling plant (Javers, 2022). National security concerns prompted the U.S. Senate to propose a bill prohibiting the purchase of land in the U.S. by companies or individuals from China, North Korea, Iran, or Russia.

Usda Reports On Land Values And County-Level Cash Rent Estimates Across Nebraska In 2023, Jim Jansen, Jeff Stokes

Center for Agricultural Profitability

Survey findings from the USDA-National Agricultural Statistics Services (USDA-NASS) estimated that Nebraska farm real estate value, including all agricultural land and buildings, in 2023 increased by 13.1% to an average of $4,240 per acre (Figure 1). The year-over-year increases mark an increase of $490 for this annual period (USDA-NASS 2023a). Kansas and New Jersey lead the nation for the highest rates of increase in the market value of farmland at 16.3% and 14.9% for market value averages of $3,060 and $17,700 per acre. Nebraska marked the fifth-highest percentage increase for rising farm real estate when ranked against the other states.

Insurance, Policy, And Education For Livestock Producers, Milan Chauhan, Bradley Lubben

Cornhusker Economics

Federal crop insurance programs have existed since the 1930s, but for livestock producers, federal insurance programs were virtually nonexistent until the past 20 years. Livestock producers may not face exactly the same production risks that crop producers face, but they do face similar production risks related to grazing capacity and forage production and of course face price risks just like crop producers do.

Nebraska Crop Budgets 2024, Robert N. Klein, Glennis Mcmclure

Department of Agricultural Economics: Presentations, Working Papers, and Gray Literature

The 2024 Nebraska Crop budget projections were created using cropping practice norms for many producers in Nebraska. However, each individual farming operation is unique, and these budgets should be used only as a guide. The budgets for 2024 are available in the Agricultural Budget Calculator program at:https://agbudget.unl.edu/. To modify these budgets, you can download UNL budgets into your ABC program account or create your own. In addition, the reports for each of the 2024 crop budgets are saved as printable (PDF) files. See also the new budget calculator at https://cap.unl.edu/abc.

The following individuals contributed to these budgets …

Why Do Farmers’ Cooperatives Fail In A Market Economy? Rediscovering Chayanov With The Chinese Experience, Zhanping Hu, Qian Forrest Zhang, John A. Donaldson

Research Collection School of Social Sciences

In The Theory of Peasant Cooperatives, Chayanov develops the theories of differential optima and vertical integration, which stress the vulnerability of peasant farming in capitalist markets, and argues that cooperatives can support smallholders only if they operate as ‘a cooperative movement’, are buttressed by a strong ‘cooperative culture’, and achieve ‘vertical integration’. Based on extensive fieldwork in China, we identify six major obstacles that explain the failure of most cooperatives. Chayanov’s arguments caution us to not only the vital importance of cooperatives to the resilience of peasant farming, but also the apparently insurmountable obstacles that cooperatives face in market economies.

Are You A Farmer Or Rancher Over 18? It’S Time For An Estate Plan, Jessica J. Groskopf

Center for Agricultural Profitability

Often, the risk of failure for a farm or ranch caused by the death or disability of a young person is much greater than the loss of an older member of the operation. The loss of a young person is usually unexpected. Young people are often not as financially stable, have young families, and provide the bulk of manual labor. Estate planning is something anyone over the age of 18 should do, regardless of how little or how much they have in assets.

Marketing Calves With Blemishes, Randy Saner

Center for Agricultural Profitability

Selling these calves with blemishes or color differences could improve your profit if you follow some of the recommended steps. However, it could also be a complete disaster, unless you understand the risks and work to reduce them. Traditionally, about one-half the value of beef is added after cattle leave the farm. Keeping those calves on the farm longer gives you the chance to retain more of the income for the same calf. Most calves with blemishes or differences in color won’t affect their quality of meat if fed right.

High Culling Continues To Impact Beef Market, Elliott James Dennis

Center for Agricultural Profitability

The annual fall feeder run is about to begin. Given cattle prices, forage conditions, and the economy the question of whether heifers will be retained to rebuild the beef cow herd remains uncertain. Consider these factors that give pause to whether this expansion will occur with as much momentum we might think.

Ag Lenders Offer Insight On Conditions For Nebraska Livestock Producers, Jay Parsons

Center for Agricultural Profitability

In 2017, the University of Nebraska-Lincoln’s Institute of Agriculture and Natural Resources (IANR) and Nebraska Extension made a commitment to implement a multidisciplinary Beef Systems Initiative (BSI) to develop and support implementation of beef production systems in Nebraska. In addition to the BSI, a parallel project funded by the Foundation for Food and Agriculture Research (FFAR) implemented a study of the best practices for incorporating beef cattle onto cropping systems while improving ecosystem services to ensure sustainability.

As a component of the FFAR project, an agricultural lenders panel was formed to provide input and feedback to UNL researchers on the …

U.S. Trade And Investment Restrictions: Laudable But Costly Goals, Christine Mcdaniel

Yeutter Institute International Trade Policy Review

U.S. Commerce Secretary Raimondo’s recent visit to China resulted in the announcement of a new “export control enforcement information exchange” between the United States and China. The laudable goal is to prevent China from using U.S. technology for military purposes against the United States or our allies. An information exchange may be a way to explain things to each other, but the fact remains that the export controls are indeed in place. China represents large revenue streams for three of the largest US chip producers—about 20% for Nvidia, 60% for Qualcomm, and 20-30% for Intel. If these U.S. companies cannot …

U.S. Trade And Investment Restrictions: Laudable But Costly Goals, Christine Mcdaniel

Yeutter Institute International Trade Policy Review

U.S. Commerce Secretary Raimondo’s recent visit to China resulted in the announcement of a new “export control enforcement information exchange” between the United States and China. The laudable goal is to prevent China from using U.S. technology for military purposes against the United States or our allies. An information exchange may be a way to explain things to each other, but the fact remains that the export controls are indeed in place. China represents large revenue streams for three of the largest US chip producers—about 20% for Nvidia, 60% for Qualcomm, and 20-30% for Intel. If these U.S. companies cannot …

Tax Accounting Vs. Managerial Accounting: What Is The Difference And Why Does It Matter?, Shannon Sand, Matt Stockton

Center for Agricultural Profitability

Understanding your farm's finances is critical to making sound decisions and positioning your operation for success. But the accounting methods used for tax purposes don't always provide the information needed to properly manage your business.

This article lays out how tax accounting focuses on external reporting and follows rules aimed at calculating taxable income. In contrast, managerial accounting looks inward, capturing the data needed to analyze production costs, cash flows, capital investments, and overall profitability.

Higher Education Exports Before And After Covid, John C. Beghin, Byungyul Park

Yeutter Institute International Trade Policy Review

Historically, the higher education system in countries belonging to the Organization for Economic Cooperation and Developing (OECD), a grouping of advanced economies, and especially in the United States, has been a magnet for foreign students, both graduate and undergraduates. Graduate students tend to be supported by teaching and research assistantships from the hosting university and do not generate direct revenues for the hosting institution. They do contribute to the economy with their productivity in research projects and with their private consumption. In contrast, most undergraduate foreign students pay fees and tuition which are often higher than those paid by local …

Harvest Operations - Own It Or Hire It?, Glennis Mcmclure

Center for Agricultural Profitability

As the fall harvest nears and we’re tuning up our equipment, the thought of custom hiring out our harvesting work comes to mind for some. There are many factors to consider as we make custom hire versus ownership decisions, with cost considerations generally at the forefront of our thoughts.

Technology Use Growing On Nebraska Farms And Ranches, Larry W. Van Tassell

Center for Agricultural Profitability

On Aug. 17, the USDA National Agricultural Statistics Service (NASS) released its “Technology Use (Farm Computer Usage and Ownership)” survey. According to the survey, 77% of Nebraska farmers and ranchers own or use desktop or laptop computers. That is up from 74% in 2021. Similarly, 85% own or use a smartphone, which is up from 80% in 2021. Farmers and ranchers in Nebraska are above the U.S. average in computer use as 69% of producers in the U.S. own or use a personal computer and 82% own or use a smartphone. Interestingly, 90% of farms in Nebraska reported …

Terminating A Verbal Farmland Lease In Nebraska, Jessica J. Groskopf, J. David Aiken

Center for Agricultural Profitability

Some farm leases are not written but are verbal or "handshake" agreements. Because nothing is in writing, the parties may have different recollections of their agreement, making lease disputes more difficult to resolve. The most common legal issue associated with verbal farm leases is how a lease may legally be terminated. For verbal leases, six months advance notice must be given to legally terminate the lease. In contrast, the termination of a written lease is determined by the terms of the written lease. If the lease does not address termination, the lease automatically terminates on the last day of the …

Nebraska Approves Pass-Through Entity Tax Bill, Tina N. Barrett

Center for Agricultural Profitability

In 2023, the Nebraska Legislature passed a bill that allows a partnership or S-Corp to elect to pay its state income taxes. Previously, because the income from the partnership or S-Corp is passed through to the owner, the owners of the entity paid the taxes at their own individual tax level.

In 2018, the federal government passed the Tax Cuts and Jobs Act (TCJA), which limited the itemized deduction for state and local taxes in the individual’s return to $10,000. This prompted many states to adopt laws like the new Nebraska law to work around this limitation. Federal tax law …

Crop-Livestock Diversification And Efficiency In Agriculture, Jay Parsons, Maroua Afi

Cornhusker Economics

Diversification is a familiar strategy for managing risk in agriculture. It can take several forms including growing more than one crop or operating a farm with both crop and livestock enterprises. As with other strategies for managing risk, diversification comes with a unique set of costs. Managing a farm with multiple enterprises creates additional overhead as well as additional demands on management, labor, land, capital, and other resources. Diversification adds complexity to an operation and too much complexity can lead to inefficiencies.

2021 Northeast Maple Business Benchmark, Mark Cannella, Christopher Lindgren

UVM Extension Faculty Publications

The 2021 production season left many producers disappointed. While sap flow volume was reported as average to normal in many instances, pervasive low sap sugar content influenced the lower syrup production totals.

The 2021 Northeast Maple Business Benchmark report documents the ninth year of financial record analysis for commercial syrup producers. The project includes maple producers in Vermont, Maine, New Hampshire and Massachusetts. Tap counts for this year’s participant businesses ranged from 7,000 taps to 65,000 taps.

This report demonstrates key management and financial metrics including: yield statistics, land use, operating costs, investment requirements, total cost of production, marketing strategy …

Could Information About Honey Fraud Increase Consumers’ Valuation Of Domestic Honey In The Face Of Rising Honey Imports In The U.S. And Eu?, Christopher Gustafson, Antoine Champetier

Yeutter Institute International Trade Policy Review

The consumption of honey, which has been sought out by humans for use as food and medicine for thousands of years, has been increasing in recent decades with rising incomes and attention paid to food choices and health. In two decades, honey consumption in the U.S. has risen from 1.2 pound per capita per year to 1.9 in 2021. In the European Union, per capita consumption rose from 1.5 to 2.1 pounds per capita over the same period. While this might appear to be a boon for U.S. and EU beekeepers, honey is a heavily traded product, and imports from …

California Off-Road Engines And Components Life Span Assessment, Michael Mccullough, Lynn Hamilton

Agribusiness

The useful life and warranty periods for off-road equipment in California for engines rated at 37 kilowatts (kW) and greater have not been updated since the Tier 1 rule phased in from 1996 to 2000; for engines rated below 37 kW, not since the Tier 2 and Tier 3 rules phased in from 2000 to 2008. The California Air Resources Board (CARB) staff is seeking information regarding useful life and warranty to evaluate whether amendments to those requirements are necessary after two decades of technology advancement.

Cal Poly researchers called 55 service providers across the state of California to collect …

Can Sanctions End Wars?, E. Wesley F. Peterson

Yeutter Institute International Trade Policy Review

Russia’s invasion of Ukraine has led to extensive economic, financial, trade, and other types of sanctions directed at individual Russians and the Russian economy. Most European and North American countries as well as Australia, New Zealand, Japan, and Korea have enacted sanctions and many of them are also supporting Ukraine with military and economic assistance. Many other countries including China, India, and Brazil do not support the sanctions although 141 countries belonging to the United Nations (out of a total membership of 193) voted to condemn the war. Although the use of economic sanctions to influence the behavior of foreign …