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Wednesday was Tax Day. For farmers, it was. Unlike the rest of us, farmers (and fishermen) file taxes on March 1. Due to the complexities of farming, including depreciation schedules for machinery, most farmers hire a professional tax preparer to help file their Schedule F. These are often independent accountants. And most are long-standing, often multi-generational relationships. Some local Farm Credit and Farm Bureau offices also offer the service. The business of farming is rife with fluidity. Even though they are harvested in the summer or fall, many grain crops are stored and sold throughout the year, as are livestock, so income can be generated any time of the year. There are several options farmers can use to “adjust” their income with expenses. They can elect to prepay fertilizer or other crop inputs in December or purchase equipment. So, farmers frequently consult with their tax person throughout the year for advice on managing income and expenses and how this can impact taxes. [Read more…]