AgCountry Farm Credit Services Senior Tax Specialist Ashley Kieke says weather challenges most likely changed the amount of crop insurance received. The new Market Facilitation Program payment is also unique. “In 2018, the signup period for MFP straddled 2018 and 2019 giving farmers flexibility on when they signed up and when it would be taxable. The taxable income will be in 2019.” Farmers that waited until this year to take the 2018 MFP payment will have two MFP payments for the 2019. There is more flexibility with crop insurance. “If you get a MFP payment and a crop insurance payment, that is a combination you’ll want to really look at because there are some types of crop insurance can be deferred into next year and balance out your income.” Prevent plant payments can also be differed into next year. Kieke says the tax code was overhauled in 2018, putting more significance on tax planning.
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