Issuu

DECEMBER 2020

AgCountry Farm Credit Services

PREPARE

Features CEO MESSAGE G OV E R N M E N T U P DAT E G O V ’ T PAY M E N T S & TA X P L A N N I N G CROP INSURANCE FA R M AC C O U N T I N G & TA X S E RV I C E S

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“We take a holistic approach to our business and strive to be your best total solution.”

C EO M e s s a g e : U n d e r st a n d i n g t h e I m po r t a n ce of Pr e pa ra t i o n Have you ever felt unprepared for something? Whether it is a meeting, presentation, a speech at church or maybe even a dinner with extended family, there are always those moments when we feel like we aren’t quite ready. Part of that feeling may come from us pushing off or delaying our preparations. There are also people who don’t prepare at all and just hope for the best. Thomas Edison once said, “We should remember that good fortune often happens when opportunity meets with preparation.” There are almost always opportunities to be captured. The more successful farming operations we tend to see are the ones who are the most prepared. They have crop insurance policies to protect them against whatever Mother Nature throws their way. They have succession plans in place to ensure a smooth transition from one generation to the next. They are proactive with their tax planning to avoid any unexpected bills from the Internal Revenue Service. They have accurate and current records to fully understand their financial situation along with measurable financial goals. They have a marketing plan ready to execute when commodity prices shift. All of this is done ahead of time so that when the moment comes, they are ready. It is worth noting that there are instances within our lives where events happen that extend beyond even the most well-thought-out plans. This year has served as a stark reminder of just how unpredictable life can be. In agriculture, we commonly wonder what the weather is going to be like the following growing season. We wonder about what supply and demand will look like and how it impacts markets. What we didn’t see coming was an international pandemic. This teaches us an important lesson: We should prepare for what we can, but there are times when we will have to adapt to the situation we find ourselves in. Here at AgCountry Farm Credit Services, it is our role to serve agriculture and rural America in a reliable, constructive and consistent manner in every environment. We take a holistic approach to our business and strive to be your best total solution. We know that there is a lot of work that goes into being prepared, which is why we offer our time and energy to help you understand everything from government programs to the IRS revenue code. As a member-owned cooperative, we want to see all of our patrons be successful. There is a lot coming at agriculture right now. Soon, we’ll see a new administration take office along with House Ag Committee leadership changes, international trade disputes, immigration reform and continuing pandemic issues. But we can control our preparations that guide what we do on our farms and ranches. If you’re feeling unprepared for what might lie ahead, please don’t hesitate to contact your local AgCountry office. We stand ready to assist you in any way we can.

Marc Knisely President & CEO

AgCountry Director Election

Results

Here are the results of the election for the AgCountry Farm Credit Services Board of Directors. An independent tabulator validated, opened and tallied the votes cast by mail ballot and electronically once the polls closed. Members of the 2021 Nominating Committee can be found at: AgCountry.com/Elections. If you’re interested in running for the Board, please fill out the Candidate Interest Form located on the Board Members page of AgCountry.com.

REGION 1

Kurt Elliott

Kurt currently grows corn, soybeans and navy beans. He’s part of a purebred cattle operation (Tri E Simmental) with his parents, wife and children. In addition, Kurt also owns cattle in his family’s 3,200 head feedlot along with a small vineyard.

Blanchard, North Dakota Kurt joined the AgCountry Board of Directors in 2016. Beyond AgCountry, he’s a member of the Traill County Commission Four-Year Term

where he serves on a number of county support boards due to the commission. He is also a board member of Lake Agassiz Development.

REGION 4

Mark Ellison

Mark began farming in 1983. He is part of the 5th generation to operate the farm in Grant County. Mark’s farm has evolved from a crop and livestock operation to a corn and soybean farm. He co-owns the farm along with his brother, Dan.

Elbow Lake, Minnesota Mark’s involvement within the Farm Credit System includes serving as a current director on the Farm Credit Council in Four-Year Term Washington, D.C., Vice-Chair of FCC Services, director on the AgriBank Farm Credit Council, and has served on the Minnesota Farm Credit Legislative Committee since 1997.

REGION 5

Ed began farming in 1992. On his farm, Ed raises corn, soybeans and wheat using conservation tillage methods and cover crops along with his wife and mother.

Ed Hegland

Appleton, Minnesota Five-Year Term

REGION 5

Curt Trost

Wabasso, Minnesota Four-Year Term

Ed currently serves as the AgCountry Board Chair. In addition, he is a member of the Minnesota Soybean Growers Association, Minnesota Corn Growers Association, Irrigators Association of Minnesota, Minnesota Farm Bureau and Minnesota Farmers Union along with being a member of the Minnesota Valley Lutheran Church.

Along with his wife, Curt owns and operates a grain farm raising corn and soybeans. His sons-in-law share machinery with them and help with harvest and planting seasons. Curt is Vice-Chair for Serenity Suites Senior Living - a nonprofit assisted living and memory care facility. He and his wife are on the “Rabbit Pride Gala” committee, which is dedicated to raising funds for non-budgeted items for Wabasso Public School, District 640.

The Election & Upcoming Legislative Sessions H OWAR D O L SO N , S E N I O R VI C E PR E S I D E NT G OVE R N M E NT AN D PU B LI C AF FAI R S

As you know, Joe Biden has been declared the winner and is the new President-elect of the United States. He received 306 electoral votes. Each state has certified their results through a canvas and certification process with the Electoral College also having met on December 14, 2020. On January 6th, there will be a joint session of Congress to count the electoral votes and declare the results. That is when the election results are actually final. The Vice-President and President will be sworn into office on January 20th, 2021, with the Vice-President first and then the President at 12 p.m. Eastern. The Democrats will remain the majority party in the U.S. House of Representatives, albeit by a smaller margin than the past two years. As you’re likely aware, Congressman Collin Peterson was defeated in the election. The next Chairman of the House Ag Committee will be Congressman David Scott from Georgia. He is from the Atlanta area and is very supportive of agriculture. Congressman G.T. Thompson from western Pennsylvania will be the Ranking Member on the committee for Republicans. He has served on the House Ag Committee for many years and is also a friend of agriculture. The Senate majority is still a toss-up with two run-off elections in Georgia on January 5th. In Georgia and Louisiana, the Senate election requires the candidate to receive 50% or more of the vote. Neither candidate in Georgia received over 50% due to additional candidates on the ballot. Therefore, they move to a run-off election of the top two vote getters and will be the only candidates on the ballot. Currently the Republicans have the majority in the Senate 50 PAG E 04

to 48. If both Democrats win the elections in Georgia, then it will be a 50-50 split with VicePresident Harris casting the tie-breaking vote, if necessary. In the Senate Ag Committee, we know the Republican leader will be Senator John Boozman from Arkansas and the Democrat leader will be Senator Debbie Stabenow from Michigan. We won’t know who the Chair and minority Ranking Member will be until the results of the run-off election in Georgia are known. Tom Vilsack has been nominated as the new Secretary of Agriculture and head of the United States Department of Agriculture. Mr. Vilsack is currently the president and CEO of the U.S. Dairy Export Council. He previously served as the Secretary of Agriculture for eight years under the Obama administration. Vilsack is the former governor of Iowa. In looking ahead at the new administration’s agenda and ag policy priorities, we know that climate change will be near the top. Many in the agriculture industry believe that farmers and ranchers have an opportunity to make a difference with more sustainable ag practices, and perhaps benefit financially from it as well. The American Farm Bureau, the National Farmers Union, the National Council of Farmer Cooperatives and the Environmental Defense Fund have led a study and formed a group called the Food and Agriculture Climate Alliance (FACA). Other ag organizations are joining this group. This is an opportunity to help direct the new administration and Congress in a way that can benefit not only the climate but our agriculture industry, farmers and ranchers. More information on FACA and their recommendations can be found on their website at agclimatealliance.com.

What Will We See in the Upcoming State Legislative Sessions? The top priority in every state legislature will be to get through the current pandemic. Here is a breakdown of more specific priorities in each state:

M I N N E S O TA

N O R T H D A KO TA

WISCONSIN

Election Recap

In the Minnesota Senate, the DemocraticFarmer-Labor Party (DFL) picked up one seat but Republicans still hold a slim 34-33 majority. In the House, the GOP picked up five seats but the DFL still holds a 70-64 majority.

Governor Doug Burgum was easily re-elected to another term along with Congressman Kelly Armstrong. Republicans also picked up a few more seats in the North Dakota House and Senate.

The House Ag Committee Chairwoman, Rep. Jeanne Poppe, was defeated and the new Chairman of the Ag Committee will be District 11A Rep. Mike Sundin of Esko, Minnesota. Rep. Sundin grew up on a dairy farm in Koochiching County in northern Minnesota. Senator Torrey Westrom of Elbow Lake will chair the newly combined Senate Ag Policy and Finance Committee.

District 15 Rep. Dennis Johnson from Devils Lake will be the House Ag Committee chair and District 25 Senator Larry Luick from Fairmount will be the Senate Ag Committee chair.

At a national level, all incumbents were re-elected with District 3 Congressman Ron Kind winning a very close race. In Wisconsin’s 5th District, which covers an area between Milwaukee and Madison, Republican Scott Fitzgerald was elected by a 60-40 margin, replacing the retiring Jim Sensebrenner. Prior to this election, Mr. Fitzgerald had been serving as the Wisconsin State Senate Majority Leader.

Legislative Session Priorities The state budget will be a top priority in the next few months as the Minnesota House and Senate convene on January 5th. On December 1st, Minnesota Management and Budget officials released an updated forecast, projecting a $641 million surplus this year. This was a surprise as a deficit of about $4.7 billion was expected due to the pandemic. There is a $1.27 billion budget deficit forecasted for the 2022-23 biennium, but House and Senate leaders have said that is manageable. Other priority topics will be a state COVID relief package, rural broadband, climate, water quality and funding for ag research and ag research projects.

Legislative Session Priorities The budget will be a top priority for the North Dakota legislature, too. The Governor has proposed a $15 billion dollar budget. The biggest issue in the budget will be discussion of issuing bonds to pay for much needed improvement to roads and bridges. Governor Burgum would like to take advantage of the low interest rate environment, issue North Dakota bonds to investors to create a revolving loan fund for infrastructure improvements and make the bond payments using earnings from the Legacy fund. Other items expected in the session will include a bill proposed from the Agriculture Department that changes grain buyer licensing and bonding requirements and providing more security for farmers making deferred payment sales of grain and livestock. Also on the agenda is funding for the Agriculture Products Development Center at North Dakota State University and SBARE initiatives.

Newly elected Senator Joan Ballweg, District 14 from Markesan, will chair the Senate Committee on Agriculture and Tourism. Senator Ballweg previously served as the Representative for Wisconsin Assembly District 41 since 2004. Legislative Session Priorities Like Minnesota and North Dakota, the state budget will also be a top priority for the Wisconsin legislature. In Wisconsin, the Governor has broad veto ability in the budget, including being able to strike a line or even specific words. Therefore, legislators are careful to keep the budget very specific and concise and expand the language associated with it in the legislation that is presented. Other issues in agriculture will include developing more state meat processing infrastructure, funding for the non-point source pollution cost-share program, funding for the producer-led watershed grant program, the dairy export program and development of the Governor’s nitrogen application rules.

Government Payments & Tax Planning

What You Need to Know A S H L E Y K I E K E , S E N I O R TA X S P E C I A L I S T/C O O R D I N AT O R

While this year was full of the unexpected, 2020 taxes do not have to be a surprise. This year, many farmers received income from various government programs, increased sales due to improved commodity prices, as well as some unexpected sources. It is vital that farmers understand their financial situation and how these sources of income impact their 2020 income taxes. Not only is there a need to plan for the potential tax liability but also to make better decisions on how to manage 2020 and future income. The first step in this process is to understand how income from different sources will be treated for tax purposes. Government payments come from many different programs and come with many different acronyms! One of the larger payments farmers received in 2020 was from the Coronavirus Food Assistance Program (CFAP). These payments came in three rounds from two programs - CFAP and CFAP 2.0. Any payments received under these programs are taxable as Schedule F income in the year they are received, similar to how farmers were taxed on the Market Facilitation Payments (MFP) received in 2019. However, don’t forget the third MFP payment was received in early 2020. There is no option to defer these payments into the next year. Another payment many farmers will receive in 2020 - that cannot be deferred - came from the Wildfire and Hurricane Indemnity Program Plus (WHIP+). Many of these payments are related to 2018 and 2019 crop production. The rules around WHIP were expanded to include

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excess moisture allowing more Midwestern producers to qualify. While we typically think of crop insurance payments as something we can potentially defer to the following year, this is not an option for WHIP+ payments since they are based on the previous year’s crop. Another payment that may have come as a surprise during 2020 was the Syngenta litigation settlement. Farmers received the first 65% of the settlement in the spring of 2020, with the remaining payment expected to come late 2020 or early 2021. These payments will be Schedule F income taxable in the year received. Lastly, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) called for Economic Impact Payments, also referred to as stimulus payments. These payments were $1,200 per individual ($2,400 for married couples filing a joint return) plus $500 per qualifying child under age 17. The payments were subject to income thresholds and will be reconciled on 2020 returns but will not be included in gross income. We can’t forget about loans. Typically, loans are not taxable income because they are simply an influx of cash that will be paid back over time. The exception to this rule is when loans are forgiven. If a loan is forgiven, it is considered canceled debt, which is taxable income. Why is this important? During the spring of 2020, the Small Business Administration (SBA) introduced Economic Injury Disaster Loans (EIDL) and Payroll Protection Program (PPP) loans. As part of the EIDL program, business owners, including farmers, could request an advance of $1,000 per employee that did not have to be paid back (i.e.

your debt was forgiven). Therefore, these loans are included in taxable income. PPP is a different story. This program offered loans designed to provide a direct incentive for small businesses to keep their workers on payroll. The PPP loans may qualify for forgiveness if certain criteria are met. Congress also ensured that when forgiven, the cancelled debt would not be included in gross income. Unfortunately, Congress was silent on how to treat the expenses the funds were used for. The Internal Revenue Service recently provided guidance that related expenses are not deductible on an individual or a business’s 2020 tax return if the loan is forgiven or expected to be forgiven. With commodity prices on the rise and potential changes to the tax law, it is more important than ever for taxpayers and farmers to be flexible and agile in their business decisions. Understanding year-end planning strategies is the first step in being ready to respond to unanticipated income or taking advantage of law changes. Moving crop insurance payments into the following year can be an easy way to shift a lot of income. While some of the payments listed earlier like the WHIP+ payments are not able to be deferred, 2020 still had some weather that generated crop insurance claims. Taxpayers can defer crop insurance income if their normal business practice is to sell grain the following year and the loss was for the current crop year. While losses tied to revenue are not deferrable, you can still defer production losses. Keep in mind that if you chose to defer your production losses on your 2019 return, you do need to include the income on your 2020 return. With yearend approaching, farmers often find themselves in a position where they do not know if income will be received before the end of the year. There are tools available to combat that uncertainty. Deferred grain contracts are a great way to lock in today’s prices and get some grain out of the bins while putting into place a tool for tax time. Deferred grain contracts are what we in the tax world call an installment sale. Since the items being sold (grain) are both priced and delivered, the seller has the option to include the income on their tax return from the sale at the time of the contract (2020) or when the cash is received (2021). While you can make

this choice to show the income at the time the return is filed, it is on a contract-by-contract basis. Therefore, we typically recommend doing several smaller contracts vs. one large contract. Overall, with all the moving pieces in farming and ranching, tax planning is essential to ensure the decisions made today provide the most benefit to you and your farming operation. This year sent a lot of curve balls our way and we need to do our best to take advantage of every benefit we can.

TA X D E A D L I N E S

E S T I M AT E PAY M E N T D U E D AT E

I N F O R M AT I O N R E T U R N D U E D AT E

FARM ER DEADLI N E

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2020

Photo Contest

WINNERS

st PLACE

S UZ ET T E LO N GT I N | WA LH A LL A , N D

nd PLACE

JACOB MEYER | SAUK CENTRE, MN

rd PLACE

TAY L O R V I S S E R | M A H N O M E N , M N

GIVE US YOUR BEST SHOT! Do you have photos that showcase life on the farm or in the country? We’d like to see them! Our 2021 photo contest will officially open on January 1, 2021. Cash prizes will be awarded to the first, second and third place entries. Submit up to five photos per person by visiting agcountryphotos.com.

2021 Marketing Day Experts in Every Field January 21, 2021 9:00 am - 4:00 pm

More Information & Registration: AgCountry.com/MarketingDay

FEATURED SPEAKER

Peter Zeihan What’s Next with Our New Leaders Peter Zeihan is a geopolitical strategist, which is a fancy way of saying he helps people understand how the world works. Peter combines an expert understanding of demography, economics, energy, politics, technology and security to help clients best prepare for an uncertain future.

Virtual Event Speakers The Wild Side of Weather

What’s Good about Grain Markets

Eric Snodgrass

Matt Roberts

Local Markets & Their Influencers

Frayne Olson NDSU

Ed Usset U of MN

Your Crop Insurance Checklist

Are You Prepared? LINDA WIDNER , SENIOR INSUR ANCE SPECIALIST

A crop insurance policy is one of the most important tools farmers and ranchers have to help mitigate risk. In some years, it could actually be the difference between finishing in the black versus the red. For these reasons it is important that your policy be kept up to date. We are now entering that time of the year for your annual renewal meeting with your AgCountry insurance specialist. Clear communication is vital and needs to go both ways. The more you, as a farmer, can help me, as your agent, understand your individual situation, the better I can help you with your crop insurance needs. Whether you renew/review your Multi-Peril Crop Insurance (MPCI) face-to-face, virtually, by phone or mail, here are some things to think about ahead of time: Are you doing anything different in your operation? You would be surprised how even small changes to what you’re doing on your farm can impact your policy. Are you farming different land, especially if it’s land in a new county? If you’re farming new land in the same county where you already farm, that land will be covered on your existing policy, but we’ll want to tell you what kind of yield and premium to expect. If you’re expanding into a new county, that land is not automatically covered! To avoid surprises, please tell your specialist about any new land as soon as possible, even if it’s after the March 15th sales closing deadline. We also like to know if you’re dropping land. Are you farming under a different entity or tax ID? It’s not only your tax person who needs to know this! You may lose out on a claim payment if the acres are insured under the wrong name or wrong tax ID. It’s best if it matches exactly with how you certify at the Farm Service Agency. Have you changed your name, address, phone or marital status within the last year? No, I’m not just being snoopy. Withholding spousal information can cut the size of your claim in half. And who wants confidential insurance documents sent to the wrong address and getting lost? Are you switching shares, such as going from 100% share to sharecropping with someone? We strive to set up your units to reflect the best yields and the correct shares, so you don’t risk losing out on claim dollars. Maybe there’s good history that can be transferred. Under certain circumstances it’s also possible to insure your shareholder’s share, so please tell us about it! Are you planning to transition a son or daughter into the operation in the next few years? This is a decision that should be discussed with your specialist well ahead of time so you fully understand the insurance ramifications for you and your child. It usually works best to have the next generation start out slowly with their own policy, adding a little land every year rather than a huge chunk all at once. Adding more than 2,000 acres to their policy (or to yours!) in the same county in the same year can be a pitfall you may wish to avoid if possible. PAG E 10

What are your planting intentions? We realize your plans can change but it is very helpful to know what mix of crops you’re intending to plant, approximately how many acres of each crop and where. That way we can have accurate quotes ready and can be better prepared to discuss your options. Are you thinking of raising any new crops, crop types or using any new practices? If you’ve strictly been a corn/soybean farmer but there’s a possibility you’d plant sunflowers if it’s a late spring, do you even have sunflowers on your policy? It’s too late to add a new crop after March 15th. Or maybe you’ve raised oil sunflowers in the past but now you might try confections. While those are covered, a different crop type usually means different yields and premiums. Do you know your breakevens and how your crop insurance ties into your marketing plan? Having this information going into your renewal helps us narrow down the type of policy, coverage level and options that work best for YOUR operation to cover your risks. Doing the same old thing year after year doesn’t always make sense. Do you understand the pros and cons of insuring under an Enterprise Unit (EU)? Even though EUs have been around for several years, it is surprising how many ways a farmer or agent can get tripped up by all the ins and outs of EUs. Let us help educate you! Are you worried about prevent plant (PP) for 2021 and should you buy-up the PP coverage? If PP is a big concern for you, we will want to be sure to talk about your eligible acres, PP payments with and without the buy-up, 1-in-4 rule, 20/20 rule, etc. At AgCountry, we pride ourselves on working within the rules to maximize your PP payments. Have you turned in your yields for the 2020 crop? We usually ask for your production in November or December to allow us time to process your 2020 numbers and get your new approved yields back before your renewal. Without updated yields, we cannot give you accurate premium or coverage figures nor can we do a thorough analysis of the various options available. Are you aware of the MPCI changes for the 2021 crop year and how they affect you? You may hear from the media or another agent about some new products, programs or changes. Sometimes they are simply not a good fit for our area or you. At your renewal, we’ll want to go over any new items that could affect YOUR policy so you can make informed decisions. Would you like to review and write your hail policy at the same time as your MPCI? Let us know ahead of time if you’d prefer to do a hail analysis at your MPCI renewal or loan renewal. That way we can have some numbers ready for you and you can get some hail decisions wrapped up early. Have you put in your request with Mother Nature for good weather?

Okay, the last question was to see if you’re still paying attention. But wouldn’t it be helpful if future weather worked like that? Since we know that won’t happen, it’s best to rely on the expertise of the insurance specialists at AgCountry to help guide you to the best coverage for your operation. You may not know until the end of the year if you made the right choices. However, with some early planning, preparation and communication with your insurance specialist before, during and after your renewal meeting, you will be in a much stronger position to conquer whatever Mother Nature throws your way.

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10 Reasons

To Have Your Insurance with AgCountry FCS PA I G E A LT E R M AT T, S E N I O R I N S U R A N C E S P E C I A L I S T/C O O R D I N AT O R

We know that farmers have plenty of options when it comes to the insurance team they work with. Here are 10 reasons for how AgCountry can help you meet your insurance needs:

Crop insurance is complex, costly and a very competitive business. Every agent has a reason as to why you should “buy” your insurance from them. But we hesitate to use the word “buy.” Instead, we believe in helping you determine the right risk management plan for your operation, and so we would like to share some of AgCountry’s reasons why we feel growers should consider us for their crop insurance.

Understanding your risk is crucial and keeping your best interest in mind is our basis for protecting that risk. The goal of our insurance staff isn’t to simply sell you a product, but to provide solutions. We continuously look at products that help you achieve your goals and mitigate risk. We write with six approved providers, giving us access to numerous products and finding the best fit for each producer.

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We’re not just agents. Our team is made up of specialists who are fulltime crop insurance professionals. With the ever-changing rules, products and complexity of today’s coverage, and the high risks involved in each operation, it’s crucial that our time is concentrated on crop insurance.

As with our loan officers who work exclusively in agriculture and understanding the aspects of your operation, so do our insurance specialists. Each specialist spends numerous hours attending insurance classes, as well as training in areas of commodity marketing and farm bill and ad hoc disaster programs, all of which are provided by three AgCountry commodity marketing specialists.

With over 40 specialists on hand, we have a vast network of expertise. Team members help one another through technical aspects of the policy. Specialists are always available to step in with another’s absence so that our producers always have someone to talk to. In addition, our producers can always reach us through technological means any time of day, because we know perils that affect your crop don’t just happen during office hours.

We make every effort to meet with each insured customer annually to discuss the upcoming season and review the coverage in place to ensure a plan is adequate and covers all risk. We can adapt our meetings to best fit the producer whether it’s in person, through mail, over the phone or electronic means. We believe your renewal meeting, or a claim submission, should not be the only time we communicate. With issues that arise throughout the year, we’ll be in contact to provide options and solutions.

At AgCountry, we don’t just write policies. We write risk management plans. We look at your whole operation, consider all options and design coverage which not only protects you from a loss, but provides protection when marketing opportunities arise.

As with inputs and technology which change from year-to-year, so does crop insurance. Buying the same coverage each year may not fit today’s needs. We provide service beyond just writing your policy by utilizing tools developed by our own staff to analyze your risks and opportunities and look for options to optimize your coverage.

Our loan officers and insurance staff are not high-pressure, commissioned salespeople. All commission earned benefits your cooperative. Because of this you’ll never feel pressured into something. Instead, you can be assured our specialists present only what they feel is an optimal solution for your operation with no other underlying reason.

We are your farmer-owned cooperative. We are here to serve agriculture and rural America and to be your destination for success. As an insurance customer, your risk management plan will be designed to protect the success of your operation now and into the future. We encourage you to talk to your loan officer or insurance specialist and be certain that your policy has your best interest in mind.

If you’re interested in learning more about how AgCountry can help find the right crop insurance policy for you, contact your local office or insurance specialist.

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FARM ACCOUNTING & TAX SERVICES:

A FARMER’S

“ONE-STOP SHOP” M A R Y G E R M A N , S E N I O R FA R M A C C O U N T I N G S P E C I A L I S T/C O O R D I N AT O R D A N E L A R S E N , S E N I O R TA X S P E C I A L I S T

Why would it be a benefit to have my farm accounting records and tax service at the same company? At AgCountry Farm Credit Services, our farm accounting and tax specialists have years of experience providing valuable information to our patrons. Here are some important reasons to consider having AgCountry provide you with farm accounting and tax services: 1. The farm accounting specialist will provide you with monthly financial statements throughout the year, which will allow you to make good, sound decisions about your operation. AgCountry provides accrual accounting that tracks actual profits and trends for your operation whereas cash accounting can lead to misleading farm management decisions. This information then can be shared with the tax specialist who can provide tax advice throughout the year - not just at tax planning time. 2. We are a team that builds relationships with our customers to deliver solutions to help you achieve your goals throughout the year. We draw upon the knowledge of other specialists and we stay current with new tax laws to ensure that you understand how that can impact your operation. 3. We share documents between the farm accounting and tax departments and ensure there is a smooth transition from producing the financial statements to preparing tax planning/tax preparation documents for the tax specialist. 4. The farm accounting specialist ensures a customer has updated financial records throughout the year in case there needs to be early and frequent tax planning. For example, this could come in the form of a possible retirement or transition to the next generation. This would also be beneficial when a loan officer (whether AgCountry or outside lender) needs to have updated financial statements in order to make a sound credit decision. 5. With accurate accrual records, your tax specialist is free to spend time consulting and managing strategies that will help you achieve your financial goals. The toolbox is full of ideas to add to your tax services. When you have two sets of professionals with expertise from different areas of financial services, it will mitigate risk and potential additional expenses down the road. Our qualified team of farm accounting and tax specialists will be there every step of the way in order to provide you with a “one-stop shop,” of financial services. For more information, please contact your local AgCountry office to set up a meeting with a farm accounting and tax specialist to see how we can deliver solutions for your farming operation.

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[ AgCountry Farm Credit Services Presents ]

WINTER -ForumsVirtual

AGCOUNTRY WINTER FORUMS ARE GOING VIRTUAL! Join the AgCountry team of experts as they share industry insights from the safety of your home office. Registration is free and with your registration, you will have access to the recorded sessions for playback.

TOPICS:

Tax Succession & Retirement Insurance Market Updates •

•

January

February

March

2021

Sessions Run From 9:30 am - 12:00 pm

AgCountry.com/WinterForums

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DECEMBER 2020

AgCountry Farm Credit Services P.O. Box 6020 Fargo, ND 58108

OUR MISSION: Serving agriculture and rural America.