Financial Conversations with Fitz #9 - Now, Some More On News - 3/3/2009
WE couldn’t start a news interview without remembering our great radio personality Paul Harvey today. I can even remember that we used to listen to him when I was in Jr. High. “Now the rest of the story was a favorite of our family”. So today we are going to have a collection of news on FSA and producers for 2009.
The first thing we need to remember is today your income tax is due if you file Schedule F and did not send in estimates and the majority of your income is from F. I have been to a several crop meetings that included conversations about FSA. A first reminder is if you deliver sealed grain this month to pay those taxes, farm payments or property taxes, that you need to ‘Call before you Haul’ to obtain your Marketing Authorization Form. It seems that once we move from February to March we mentally get into the next production year. How much grain will move this month at $3.50 figure? If you sell for cash, do you purchase some ‘puts’ to recover cash between current price and the $4.00. Doesn’t seem to be much on the horizon for the $4.00 price for ’08 crop or the ’09 crop. Another item I was suggesting that we all look at is the ACRE program vs. the DCP sign up. I am not as excited about ACRE as I was before I listened to the presentations. Better check it out yourself…..Wow, the new rules on different entities take some real study. If you have a sizable operation and are going to split operations be sure you are comfortable with your decision. It also sounds like the new administration is going to be changing rules on the $500,000 cap.
Remember you need to talk to your crop insurance person before March 15th to be sure you have the acres covered that you want. Particularly if you have changes in your land base. You do need to sign up at FSA also by June 1st. As soon as you make a final decision on your crop acres get into FSA. Better now, when you aren’t busy vs. when you are going full speed around June 1st.
Don’t forget to check with you loan officer this month to run two different cash flows. One for 2008 crop and the big one for your 2009 operation. We use two different formats….The one that both of us can use is the ISU Ag Decision Maker for each operation. This year is really crucial for you continued success. There are so many factors to give thought to.
Call or stop in to see us if you have any questions in any of our three offices.
Forest City, Thompson, and Titonka
Remember that you should deal with people in community banks and organizations. When you work with them, you know that you will also see them sitting with you at ball games, church or community events. So, if in doubt give us a call.