With the year drawing to a close, farm business management instructors are reminding producers to get their tax planning in order. Betsy Jensen, Farm Business Management Instructor at Northland Community and Technical College, says accurate reporting of items like 1099s and Qualified Business Income deductions is essential. “Please keep track of those, it is typically a very large deduction, and it makes a huge difference,” said Jensen. “It really makes it hard to do tax planning if we don’t have a good handle on what that number is.” Jensen also warned farmers against showing negative taxable income even in a challenging year. “I know on an accrual basis we are going to have negative net farm income this year. I know the numbers we put together for farm management are not going to be good, but from a cash standpoint, I still want farmers to try and have a positive income.”
