MISSOURI — Winter is when work moves from the fields and pastures to the home office and kitchen table. University of Missouri Extension offers resources as farmers work on tax preparation, production decisions, setting financial goals and updating farm business plans.
Taxation of crop insurance
For some Missouri farms, weather conditions have led to unusual production and sales that can have tax consequences. Livestock producers in parts of Missouri sold animals this year while forage supplies dwindled and feed prices rose. MU Extension agricultural business specialist Mary Sobba explains these sales do have tax implications.
Sometimes, the law allows producers to postpone gains from livestock sales for one year. Generally, a two-year postponement is allowed if a producer replaces the livestock. Weather can also affect crop producers’ tax bills. Under certain circumstances, producers may recognize crop insurance and disaster payments as income in the tax year following the year of damage.
For more information go to mizzou.us/WeatherTax.
Census of Agriculture
American agriculture continues to evolve, and every five years the USDA’s Census of Agriculture provides the most detailed look at these changes. Mallory Rahe, MU associate extension professor, encourages farmers a to fill out their census forms online or return paper copies by mail before the end of February. Current data on total farm numbers, types of production and age of producers is used by federal, state and local governments as well as agribusinesses, researchers and trade associations to serve farmers and rural communities.
For more information go to agcensus.usda.gov
2023 farm budgets
Crop production input prices are high, but production cost estimates indicate farmers can still make money on row crops. MU Extension agricultural economist Ray Massey explains that while fertilizer and fuel prices have dropped from their highs several months ago, they are still higher than they were a year ago.
Livestock planning budgets indicate a return to normal. The updated Missouri livestock budget, released by MU Extension in the fall of 2022, forecasts strong livestock prices and declining feed costs in 2023.
Beef cattle, hog and dairy prices were strong in 2022. However, as MU Extension agricultural economist Joe Horner explains, while producers normally react to strong prices by producing more, farmers did not expand as much as expected last year due to drought, high feed costs and scarce labor.
For more information on the estimated costs and returns for Missouri row crop and livestock operations in 2023, go to mizzou.us/Budgets.