Most farmland is held outside of the company because individually owned farmland is eligible for the capital gains exemption. However, three of my firm’s corporate farmers have moved contrary to the herd in the past month by using their corporations to buy adjoining farmland. The land was considered to have been acquired at a high […] Read more
Ag Finance
Buy land in or out of corporation?
When will farmland bubble burst?
CHICAGO — Pundits say the United States is experiencing another farmland bubble, but two agricultural economists say if it bursts, it won’t be anything like the one in the 1980s. Average Iowa farmland values are estimated at $6,708 per acre this year, according to a survey conducted by Iowa State University. It’s an increase of […] Read more
Cargill warns against premature marketing of genetically modified seeds
CHICAGO, Ill. (Reuters) — Distributing biotech seeds to American farmers before they are approved in major grain export markets is not good for U.S. agriculture, an executive with Cargill Inc. said. “We do not support the commercialization of (genetically modified) traits ahead of major market approvals,” Randal Giroux, vice-president of food safety for Cargill, told […] Read more
Factors to consider when transferring farmland to children
One of the biggest considerations regarding your family farm is how to transfer farm land to your children or grandchildren. As you near retirement, the farm’s assets may be your main source of income and it is important to look closely at the options available to ensure you do not jeopardize your future security when […] Read more
Farm businesses can be protected from marriage breakdown
It’s unfortunate, but marriages do fail. That alone can be cause for sadness, but when a marriage also involves one or both of the partners owning a farming business, it is vital to consider the value of the business and how it can be protected. Failed marriages among adult children involved in a family farm […] Read more
Capital gains exemption helps make most of gains, rollovers
Most people have heard about the capital gains exemption, but they are not always familiar with the benefits the exemption can provide. In particular, producers may not be aware of how their capital gains exemption can be used in conjunction with other tax planning strategies to limit or defer income tax on their farming operations. […] Read more
