Back to Ag Home Page 

County Home Page

Previous Issues:

Feb 2003

Jan 2003

Nov 2002

Oct 2002

Drought Edition

Jul/Aug 2002

Jun 2002

May 2002

Apr 2002

Mar 2002

Feb 2002

Jan 2002
 

 IN THIS ISSUE...   September 2002

Farm Tax Management In A Dry Year
Due to low and variable yields, some farmers will experience low or negative farm income in 2002. There are a number of management strategies that can be used, even in a low income year, to generate cash or maximize after-tax income. Following are some strategies followed by a edited summary from the 2001 Farmer's Tax Guide (Publication 225) on Net Operating Losses:

1. Do a tax estimate in the Fall when you still have time to make management decisions for the current tax year.

2. If the estimate appears to be about a break-even year, try to have enough taxable income to utilize you personal exemptions and deductions.

3. If there is a farm Net Operating Loss, farmers have the following options:
a. Carry back 5 years, then 4, then 3, etc.
b. Forgo the 5 year carryback and carryback only 2 years.
c. Forgo the 5 year and 2 year and only carryforward for 20 years until used up.

4. If a Net Operating Loss is carried back to get a refund of previously paid federal income taxes (not Selt-employment taxes) then also file amended Ohio returns (IT 1040X), School District, and any city tax returns for additional refunds.

Net Operating Losses
If your deductible loss from operating your farm (after applying the at-risk and passive activity limits) is more than your other income for the year, you may have a net operating loss (NOL).

If you have a NOL this year, you can use it to lower your taxable income in another year or years. You may be able to get a refund of all or part of the income tax you paid for past years, or reduce your tax in future years.

To determine if you have a NOL, complete your tax return for the year. 

You may have a NOL if a negative figure appears on the line shown for 2001 tax returns:

1. Individuals - line 37 of Form 1040.
2. Estates and trusts - line 22 or Form 1041.
3. Corporations - line 30 of Form 1120 or line 26 of Form 1120-A.

If the amount of that line is zero or more, you do not have a NOL.

There are rules that limit what you can deduct from gross income when figuring the NOL.

These rules are discussed in detail under How to Figure an NOL in Publication 536. In general, these rules do not allow the following items:

1. Personal exemptions.
2. Capital losses in excess of capital gains. (Nonbusiness capital losses may only off-set nonbusiness capital gains.)
3. The section 1202 exclusion of 50% of the gain from the sale of exchange of qualified small business stock.
4. Nonbusiness deductions in excess of non-business income.
5. Net operating loss-deduction.

-Corn #26 - 2002 

back to top
 

Ohio Bull Test Accepting Nominations
The Ohio Cattlemen's Association, Ohio State University Extension and the Ohio Agricultural Research and Development Center are making preparations for the 34th Annual Ohio Performance Bull Test and Sale. This past spring marked the completion of the most successful test and sale in recent years. A strong educational testing period was capped off with the 109 bulls offered at auction selling for an average of $1,667. For the first time since the minimum bid price of $1,000 was implemented in 1999 all animals coming into the sale ring received the required minimum bid. The Ohio Bull Test (OBT) committee hopes to build upon the momentum of the past two years for the upcoming testing period.

The Ohio Bull Test offers an excellent marketing opportunity for both small and large beef producers. The test also provides efficient and effective management and facilities for bull development. Collection of on-test data in combination with EPDs from an entire breed population provides a unique index to compare
bulls. This no only is a tremendous value to potential buyers, it allows a consignor to see how their animals stack up against fellow breeders.

For 2002-2003 the OBT program will be very similar to the past couple of years in terms of schedule and procedure. Nominations are due September 14, 2002, delivery day will be October 29 and the sale will be held April 19, 2003. The Ohio Bull Test is pleased to welcome the Eastern National Simmental Bull Test to again be held in conjunction with the OBT. In the area of health a strict set of pre-delivery vaccinations will be required, bulls will be tested on delivery for BVD virus, and all bulls originating from a herd participating in their state sponsored Johne's Disease (paratuberculosis) test-negative status program will be appropriately identified. Get-of-Sire groups, three bulls from the same sire, will continue to be identified, a Centralized Ultrasound Processing (CUP) technician will collect carcass ultrasound measurements and Five State Beef Initiative Power Scores will be calculated.

Nomination forms are available from local Extension offices or the Ohio Cattlemen's Association office. Contact Justin Lahmers at the OCA office, 614-873-6736 or jlahmers@ohiobeef.org for a nomination form or additional information. Rules and information related to the testing program can be found on the web at: http://bulltest.osu.edu .
The Ohio Bull Test is located at the Eastern Ohio Resource Development Center in Belle Valley, Ohio.

back to top
 

How Dry Is It?
If it seems to you that the drought has hit our three counties harder than other Ohio locations, you're right, it has! On average, our area of the state has received less rain than any other area in Ohio. For the month of July, our region of the state had just 27% of normal precipitation. August hasn't been much better.

Farm Science Review - September 17 - 19 – The Place For Everyone In Agriculture
Ohio State University puts on this show to bring the top agriculture experts together in one place. Mark you calendar and plan to attend. You can find almost anything related to agriculture at the Review.

2,100 acres showcasing a dynamic agricultural industry

Nearly 600 commercial exhibitors representing more than 4,000 companies

90 acres of exhibit space

800 plus acres of field demonstrations

New Small Farm Center

Easy access from I-70 west of Columbus, near London

-OSU Extension Offices in Carrollton, Cadiz, and  Wintersville

-FSA Offices, Carrollton and Hopedale

-Jefferson Landmark - Bloomingdale, Adena, and    Cadiz

-Kuester Implement - Bloomingdale

-Carrollton Farmers Exchange

USDA Dairy Program Signup Underway
Sign-up began August 13 for the new USDA Milk Income Loss Contract program. This new program authorized by the 2002 Farm Bill financially compensates dairy producers when domestic milk prices fall below a specified level in Boston (a real hot-bed of dairy production!).

Eligible dairy producers are those who produced milk in any state and marketed the milk commercially beginning December 2001. To be approved for the program, producers must be in compliance with highly erodible and wetland conservation provisions and must enter into a contract with USDA's Commodity Credit Corporation to provide monthly marketing data.

MILC payments will occur in months when the price of Class 1 milk in Boston under the Northeast Milk Marketing order falls below $16.94 per cwt. Payment rates will be 45 percent of the difference between $16.94 and the Boston Class 1 price for that month. Dairy operation will not receive a payment for months during which the class 1 price in Boston is $16.94 or higher. A similar payment calculation will be applied from December 1, 2001, through the month preceding the month the producer enters into a contract with CCC.

Program payments, scheduled to begin in October 2002, will be retroactive from December 1, 2001 for eligible production. Payments will be made on an operation-by-operation basis, up to a maximum of 2.4 million pounds for milk produced and marketed by the dairy operation per fiscal year. Producers can select the month they want to start receiving payments for eligible production.

As required by the 2002 Farm Bill, USDA will apply the same definition for a dairy operation as used in previous dairy market loss assistance programs. A dairy operation is any person or group of persons who as a single unit, as determined by CCC, commercially produces and markets cow milk and has production facilities located in the U.S. Producers on dairy operation are not permitted to reconstitute a dairy operation for the sole purpose of receiving additional payments.

Stop by or call your local USDA Service Center in Carrollton or Hopedale for more information or to sign-up.

back to top

Being successful in farming in the future probably means doing something very differently than you are doing it today. One place where you can hear from farmers who are achieving success with doing something differently is at the 9th annual Country Living Field Day scheduled for Saturday, September 28, 2002 near Augusta in Carroll County.

The Country Living Field Day is nothing short of a smorgasboard of agricultural alternatives. There will be information and resources on alternative farm enterprises, alternative marketing systems, and alternative production systems. The Country Living Field Day will also feature programs on farm safety, and a complete children's program including programs by COSI Museum of Columbus. For more information about the field day, check out the flyers in this newsletter, or go to the field day website at: http://carroll.osu.edu/countryliving.htm.

Sincerely,
 

Mike Hogan Extension Agent Agriculture & Natural Resources  Community Development

Ken Simeral Extension Agent Agriculture & Natural Resources Community Development

tr

Trade names are supplied with the understanding that no discrimination is intended and no endorsement by Ohio State University is implied.

All educational programs conducted by Ohio State University Extension are available to clientele on a non-discriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status.

OSU Extension will provide accommodations to handicapped persons needing assistance to participate in Extension programs. If you require some type of assistance/accommodations to attend programs, utilize written materials or visit the Carroll, Harrison, or Jefferson County Extension Offices, please contact that office or TTD#1-800-589-8292.

Visit Ohio State University Extension’s WWW site “Ohioline” at: hhtp:/www.ag.ohio-state.edu/~ohioline/
back to top

Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Keith L. Smith, Director, Ohio State University Extension.
TDD # 1 (800) 589-8292 (Ohio only) or (614) 292-1868