Income Tax Filing Deadline is March 2 for Agricultural Producers

Feb 11, 2020

By Ron Haugen

Agricultural producers have until March 2, to file their 2019 income tax returns without penalty if they have not made estimates.

“Producers have until April 15 to file without penalty if they have paid their estimated tax by Jan. 15,” says Ron Haugen, North Dakota State University Extension farm economist.

Items to note for 2019 income tax preparation:

The standard deduction is $24,400 for those who are married and filing jointly and $12,200 for singles.
The social security wage base for 2019 is $132,900.
The standard mileage rate for 2019 is 58 cents per mile.
Agricultural producers are allowed to use 200% declining balance depreciation for 3-year, 5-year, 7-year and 10-year property. The 150% declining balance method is still required for 15 and 20-year property.
For most new agricultural machinery and equipment (except grain bins), the recovery period is 7 years.
Like-kind exchanges are not allowed for personal property but are allowed for real property.
The section 179 expense allows producers to deduct up to $1,020,000 on new or used machinery or equipment purchased in the tax year. There is a dollar-for-dollar phase-out for purchases above $2,550,000.
The additional 100% first-year bonus depreciation is in effect. It is available for used and new property. It is equal to 100% of the adjusted basis after any section 179 expensing.
Income averaging can be used by producers to spread the tax liability to lower income tax brackets in the three previous years. This is done on schedule J. North Dakota farmers who elect to use income averaging for federal purposes also may use Form ND-1FA, which is income averaging for North Dakota income tax calculations.
Crop Insurance proceeds and government crop disaster payments can be deferred to the next tax year if a producer is a cash-basis taxpayer and can show that normally income from damaged crops would be included in a tax year following the year of the damage.
A livestock income deferral is available for those who had a forced sale of livestock because of a weather-related disaster.

Source : ndsu.edu

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.