The value of Nebraska’s 2017 corn crop is $5.55 billion and the soybean crop is $2.95 billion according to recent USDA National Agricultural Statistics Service (USDA-NASS) estimates. The corn production value is third-highest in the nation, falling behind Iowa at $9 billion and Illinois at $7.7 billion, and the soybean crop value is the fifth-largest. The figure below shows the values of Nebraska’s corn and soybean crops since 2010. The 2017 corn crop value is lower compared to 2016, but the soybean crop value is slightly higher. The corn crop value exceeded $9 billion in 2011, but has since fallen to where it has been around $6 billion or less in recent years. On the other hand, the value of the soybean crop has consistently hovered around $3 billion through the years. The drop in corn prices and acres in production are both reflected in the lower crop values for corn. Soybean prices have also come down, but increases in acres and higher yields have mitigated the effects on overall crop value. Continue reading →
As a senior in high school, the season of college visits, applications, scholarships and making decisions has arrived. It’s almost a daily occurrence for me to be asked, “What are you going to do after high school?” While this question causes anxiety for some of my peers, I answer it with confidence. Fortunately, I know the passion I want to pursue following graduation: agriculture. My love for agriculture began when I was old enough to say cow and only intensified by my involvement in 4-H and eventually FFA. However, as I provide my solid answer to the frequently asked question about what my major is going to be in college, my reply is often received with surprise. “You’re going to go into agriculture? Really? Don’t you want to do something else? You’re so smart, don’t you want to do more with your life?” I just smile, shake my head, and reassure them that agriculture is the field I desire to work in. Most people don’t understand why my decision to seek a career in agriculture was such an easy one to make. Here are the four biggest reasons why I choose to be the future of agriculture: Continue reading →
“The Big Mac and the Dollar” may read a bit like the title of a children’s fairy tale (i.e. Jack and the Beanstalk), but it isn’t. Instead, it’s an agricultural economist’s not-so-clever way of introducing a discussion on the value of the dollar. Nebraska agriculture relies on exports, and the value of the dollar is a key determinant in determining the competitiveness of Nebraska agricultural products in international markets.
The USDA expects prices for corn, cattle, and soybeans to be off a bit in 2018. Prices for wheat and hogs are expected to be higher. Given the large production levels of all these commodities in recent years, prices, while soft, have been stable due to relatively strong demand, boosted in part by robust export markets. The strong demand needs to continue, and, thus far, signs point to demand remaining strong. For example, Jim Robb, director of the Livestock Market Information Center, recently said the average American is expected to eat 219 pounds of red meat and poultry this year, the highest level since 2007.
Two tax code changes in the tax package passed last December by Congress are receiving much attention in the countryside. The first change concerns the tax treatment of producers’ sales to coops. The second concerns the loss of the Section 1031 exchanges for farm machinery and equipment. Let’s examine these changes in more detail.
Lawmakers moved forward on federal tax reform after negotiators agreed to language in a conference report. Both the House and Senate are voted on the conference report this week. Many farmers and ranchers continue to ask whether property taxes paid on agricultural land, buildings, and equipment in their farm or ranch operations could still be deducted. Yes—the conference report does not change the ability to deduct property taxes as a business expense by farmers and ranchers on Schedule F, Schedule E, or Schedule C. The report does establish a $10,000 limit on the deduction for state and local income and property taxes, but the limit only applies to itemized deductions claimed on Schedule A filed by individual filers. Even though most farmers file income taxes as individuals, business income from a farm or ranch is reported on Schedule F, E, or C, where property taxes can still be deducted as a business expense.
Last week the House Ways and Means Committee released its long-awaited federal tax reform proposal. The proposal would change how farmers and ranchers are taxed both as individuals and as businesses. Many farmers and ranchers are wondering if property taxes paid on land, buildings, and equipment could still be expensed as business expense under the proposal. Yes-the ability to deduct property taxes as a business expense by farmers and ranchers on Schedule F would continue.