Ag-Visors

It's not a stretch to say many farmers and farm families can benefit from investing in IRAs and getting their estate plans in order. Many Individual Retirement Accounts (IRAs) have been hard hit by the fall in asset values. However, even bad markets can create estate planning opportunities.

Demand for beef is down. Can you blame the recession? Not entirely, but it’s a darned inconvenient coincidence.
It’s hard to argue that beef quality was too low, because production of every class of premium beef has been trending up for some time.

In the last article I started a series on foot problems and lameness in cattle. We covered regular foot rot and basic anatomy. Let’s move on to a common lameness in dairy cattle, and one seen once in a while in beef cattle, hairy heel warts. This is an infection caused by a Serpien species of bacteria. It is found in wet and nasty conditions, commonly in manure. This bacterium invades the heels of the rear feet, commonly causing strawberry-looking lesions with hair growing out of them. Hence, the name hairy heel warts. Others have also called it strawberry foot rot.

Does a landowner or tenant owe a duty of care to someone that trespasses on their property? Most of us would say no, but a recent case in Dunklin County confirms that there are exceptions to that general rule.

In a lengthy decision, the Tax Court recently underscored the difficulties taxpayers have in convincing the IRS that family-run farms are engaged in for profit. The case, Smith v. Commissioner, T.C. Memo 2007-368, ruled on two families’ limited partnerships, involving a cow and dairy farm, a cutting horse operation and dog breeding. The court held that the cow and dairy farm was engaged in for profit under the IRS hobby loss rules, but not the other activities. The taxpayers had taken significant tax deductions against their income from the activities, thus prompting an IRS audit, which they lost and then appealed to the Tax Court.

One of the main problems I see a lot of is feet. It takes special equipment or effort to be able to work on cattle’s feet. To work on feet it either takes a tip chute, ropes and lots of arm power or drugs. Personally, I don’t like the drugs, they are closer to death. This leaves ropes or the tip chute. I prefer the tip chute.

In a lengthy decision, the Tax Court recently underscored the difficulties taxpayers have in convincing the IRS that family-run farms are engaged in for profit. The case, Smith v. Commissioner, T.C. Memo 2007-368, ruled on two families’ limited partnerships, involving a cow and dairy farm, a cutting horse operation and dog breeding. The court held that the cow and dairy farm was engaged in for profit under the IRS hobby loss rules, but not the other activities. The taxpayers had taken significant tax deductions against their income from the activities, thus prompting an IRS audit, which they lost and then appealed to the Tax Court. 

Enforcement action by the Internal Revenue Service has increased in recent months in the farming, horse and livestock fields, partly due to the need for the government to raise revenue, and partly due to an increase in taxpayers failing to file tax returns or failure to pay taxes owed. One of the principal problems with getting audited is that the IRS considers losses to be a red flag for the idea that you are operating a hobby rather than a business in the farming, horse and livestock industries, particularly if you have a principal occupation other than farming.



Everyone is getting ready for breeding season at this time. Are your bulls ready to go? Bulls are very important to the herd. A good bull can change your calf crop very quickly and make or break you. The wrong bull can produce too big of calves, too small of calves (dinks) or not get any of your cows pregnant.

Enforcement action by the Internal Revenue Service has increased in recent months in the farming, horse and livestock fields, partly due to the need for the government to raise revenue, and partly due to an increase in taxpayers failing to file tax returns or failure to pay taxes owed. One of the principal problems with getting audited is that the IRS considers losses to be a red flag for the idea that you are operating a hobby rather than a business in the farming, horse and livestock industries, particularly if you have a principal occupation other than farming.