By Tyler Davis
Updated Sep 15
The Delaware Statutory Trusts (DST) is a newer investment vehicle that allows real estate property owners, including farmers and ag landowners, to purchase tenants in common ownership in passive investment properties. DSTs are separate legal entities and are becoming a more popular choice for Internal Revenue Code Section 1031 exchanges. Revenue Ruling 2004-86 allows a DST to own 100% of a real estate asset and allows a maximum of 499 investors to own an interest in the trust. Delaware Statutory Trusts have many advantages over traditional real estate purchases and traditional 1031 Exchanges. Investments in Delaware Statutory Trusts can appear very similar to investments in a Real Estate Investment Trust (REIT)...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Updated Aug 7
A common issue among landowners, both large and small, is vandalism occurring on the property. One of the most interesting stories regarding vandalism is a Florida farm-owner we know woke up in the middle of the night in the ’80s to the cartel landing a plane full of cocaine on his property without permission. In doing so, the plane ran over his fence & caused a ton of damage to the property. When something like this happens, farmers are surprised to know of the potential tax consequences or benefits of this event. A vandalism, theft, or destruction event usually results in a taxpayer filing a police report and an insurance claim...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Updated Jun 20
One of the most common questions I receive as a tax professional is “What type of business entity should I choose?” Most new business owners are overwhelmed at this decision and do not fully understand the differences between types of entities. This article will explain rules, filing requirements, and benefits of the main type of business entities: sole proprietorship, LLC, Partnership, S-Corporation, and C-Corporation. Each decision is dependent upon the facts & circumstances of the owner(s), but a thorough understanding of each business type is critical in making the correct entity decision. Sole Proprietorships:The easiest, quickest type of entity to set up is a sole proprietorship. A sole proprietorship is not separate from its owner...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Updated May 13
Many taxpayers are surprised to find out that the IRS taxes hobby income. We all have hobbies. Yours might be painting, making unique juices, or growing flowers. Hobbies are an activity, or “side hustle” that is done mostly for pleasure rather than to profit. The IRS requires taxpayers to report hobby income as taxable income...
Categories: Ag Policy, Agribusiness
Published Apr 29
My name is Cara Randolph, founder of FarmAndRancher. comIn todays troubling times, I have developed a platform for our industry to unite our farmers, ranchers, services and property for sale to the consumer, while enabling you to share this and earn income from home promoting the site. Go to The Partners tab on the far right of FarmAndRancher. comHere's a link to my youtube video for a humorous look into filming a promo video, of which I would prefer to be farming and ranching instead of in front of the camera, but must get it done. Enjoy the laugh I make of myself and please share FarmAndRancher...
Categories: Ag Policy, Agribusiness, Marketing
By Darren Chan
Published Apr 9
Metarhizium anisopliae, formerly known as Entomophthora anisopliae (basionym), is a fungus that grows naturally in soils throughout the world and causes disease in various insects by acting as a parasitoid. It is a mitosporic fungus with asexual reproduction, which was formerly classified in the form class Hyphomycetes of the phylum Deuteromycota. Metarhizium anisopliae is an insect-specific parasite that is parasitic to more than 200 species of pests such as Lepidoptera, Orthoptera, Coleoptera, and Homoptera. It can be used to control a variety of pests such as agriculture, forestry, and health. The agent is a living fungal insecticide, and the morphology of the fungus is close to that of Penicillium...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Published Mar 28
Late in the afternoon on Friday, March 27th, the United States House of Representatives passed the $2 trillion federal relief package called Coronavirus Aid, Relief, and Economic Security Act (CARES). This bill was passed first in the Senate on Wednesday, March 25th. While there are many important provisions, this article is focusing on the critical relief resources available to farmers and landowners. The most talked-about relief item in the federal relief bill is the direct payments to American taxpayers. These payments are available to all Americans regardless of occupation, including farmers, and regardless of job status...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Published Mar 15
The decision to retire is often met with either enthusiasm or fear. Some farmers are counting down the days until retirement, and others are scared to retire because they aren’t sure what they will do without work. Many farmers who have worked so hard for decades have not developed any hobbies outside of farming. The decision to retire is often one of uncertainty. In evaluating this decision, farmers should analyze not just the physical reasons to retire, but also the financial implications of this decision...
Categories: Ag Policy, Agribusiness
By Tyler Davis
Published Feb 12
The tax consequences of selling a farm or agribusiness should be at the top of the mind of every landowner. For many life-long farmers, selling their farm or business is one of the most difficult decisions they will ever make. Even though putting the farm up for sale makes logical sense in most situations, farmers often have an emotional connection to their land and business that exceeds that of other industries. This article is not going to convince you to sell your property or farm. But, it will discuss many essential accounting tips, tax issues, and post-sale considerations related to the sale of a farm or agribusiness...
Categories: Ag Policy, Agribusiness
