This year, Northland Community and Technical College Farm Business Management Instructor Betsy Jensen says tax planning should be at the top of the list for farmers. “Review what your farm income looks like for the 2020 calendar year. When accrual adjustments are made, we aren’t going to see high levels of net farm income, but it’s the timing of the income that will be important,” explains Jensen. “We want steady revenue. In farm management, we don’t like to see big shifts of income from one year to the next. Farmers typically do a great job with this, but this year, government payments threw things out-of-whack. Farmers may not have made much money in the 2020 crop year, but the revenue could be an issue.” If farmers received a Paycheck Protection Program loan, Jensen recommends getting advice from an accountant and the bank that issued the PPP loan before applying for forgiveness.
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