By MICHAEL OLESON

Vice President, Business Operations

Farmland Stewardship Solutions

“I’m from the IRS, and I am here to help!” is a phrase that possibly makes a person cringe. It perhaps is said sincerely, but I am confident that the blood pressure of the person hearing those famous words spikes quickly! Being the son of an accountant, I grew up around numbers and tax clients coming to the home office so my dad could complete their income tax returns. I learned a fair amount of the lingo that goes with the IRS, and also saw a unique aspect of how the government can handle money. When it comes to money and the government, there are always mixed emotions. The past 18 months or so proves this to be true.

The year of 2020 and the first part of 2021 provided several opportunities for the government to be involved in sending money to individuals and businesses. As a recap, here are some specifics in agriculture that I am highlighting for your awareness:

– PPP

Farmers could have been eligible for a loan that was likely forgivable. Any time a situation like this is presented, it is my recommendation that farmers contact their ag loan lender or tax advisor for details. Depending on how an operation is established, a farmer likely received money with no strings attached, and producers at any gross farm income level could have applied. A $100,000 gross income gave the top end payment of $20,833. Lower gross income was provided a payment, but at a lower level.

– CFAP 3.0

Growers received a $20 per acre payment with this bill. Of the $13 billion earmarked for agriculture, an estimated $5 billion was spent on the $20 per acre payments to row crop farmers. Corn farmers shared a disbursement of approximately $1.8 billion of the aid, with soybean farmers claiming $1.7 billion. In 2020, CFAP 2.0 had eligibility requirements that were more inclusive than CFAP 1.0, with payouts of up to $15 depending on yield data and marketing stipulations. For CFAP 3.0, growers will receive a flat rate payout. This was an automatic enrollment for current farmers.

– ARC/PLC

Selection deadline was 3/15/21. Production history is incredibly important when it comes to potential payouts regarding ARC/PLC as well as Multi-Peril Crop and Hail Insurance. Higher production numbers provide greater potential payouts. Being a good steward of every acre is beneficial to maximize production yields when insurance and government payments occur. That is why we have an emphasis of solid agronomic record keeping when it comes to fertility applications and other factors to ensure that our client’s farms are being cared for and then producing at their specific optimal levels.

Commodity prices have generally been heading in the right direction since November of 2020. The current corn and soybean markets have been showing signs of being uneasy and definitely revealing the higher level of price volatility. It would be advantageous to capture some prices that work for an individual’s own operation at levels we have not seen for quite some time. As mentioned last time, hitting the home runs (picking the highest prices to sell at when it comes to grain or land sales) is not realistic. Winning a game of baseball and winning the game of marketing requires us to keep hitting base hits, doubles, and triples. Along that line, always be mindful there are government opportunities and tax strategies that might be available to enhance your bottom line and help add to your financial prosperity in 2021 and beyond.

Reach out with questions, ideas or feedback any time. Unlike the stigma of the phrase from the IRS…I’m here to help – and I mean this sincerely! Part of our service to our landowners and their growers is to communicate opportunities for success. Whether this is to convey information about land improvements and stewardship, or to share programs that are available to landowners and growers, we strive to assist people to be positioned for the best accomplishments possible. Feel welcome to contact me at michael@gannonre.com or give a call at (515) 570-2803 to have a conversation about how I can be of assistance and support to you.