Iowa Farmers here, please answer me this...
- Thread starter joelbc1
- Start date
Unless you do absolutely no estate planning, you are not going to pay estate tax. There are so many legal ways the wealthy transfer their wealth to their decedents tax free during their lifetimes it would make your mind spin.
From "NowThis News" on 7/08/2020.. at the 2:28 mark of this link:
Interviewer: "But, Do we agree that we can redirect some of the funding" (for Police)?
Biden: "Yes, absolutely"
Your link is dated :
|32,168 views|Jun 10, 2020,12:44pm EDT
Appears Joe is for defunding after he was against defunding.
You realize that health and dental insurance come out of that. Any vehicle or house payment plus living expenses. By the time farm expenses are pulled from the pot, it is a much more shallow well. Also, assuming you have 200 bushel corn. What happens in a dry or wet year and your yield is 150 bushels or lower.
Then you get subsidies from the government, just like all the other years.
'Redirect some of funding' is not the same as defunding. So it appears Joe is
The word "defund" has joined the word "socialism" as a completely misleading and overused term.
By the time expenses are pulled from the pot, there's no income to declare.
Vehicles are deductible. As someone self-employed, all kinds of other things also used for home use are deductible. Things that everyone else has to pay for with after-tax money, not pre-tax.
It's not nearly as dire as you make it out to be. And it's why many farmers drive rather fancy, decked out pickup trucks - fully deductible expenses.
I've read quip this a few times now, and cannot find "defund" anywhere. I don't think it's in there, except for where you added it.
Ummm.... are you clueless about the english language or simply distorting the truth to try to support Trump's lie?
If you own 300 acres of your own, you can figure another $60,000 of income in your pocket. But it is kind of a shit return on investment when you figure out how much it costs to be in the farming business.
So, lots of cash flow, low margins.
It's like lots and lots of other businesses, then. Only many of them do not get government-backed insurance or subsidies.
Yeah, I believe that lots of farmers will also take on lots of land or equipment debt in the years just before their kids hit college, so they are eligible for Pell grants. They just defer their income to a later date by sinking profits into more land.
I believe farming is one of the easiest occupations to be able to eliminate reportable income on tax filings. I know of many rural kids in my two daughter's graduaton classes that attended ISU for next to nothing.
Totally legal tax shelters and writeoffs. It's "gaming" the system and it would be stupid not to use those rules. But no one can deny the financial advantages ag has.
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Well, depends on the math. $450 an acre of inputs can be a bit low for corn ground, and he didn't account for any rent payments. For most farmers, let's assume that of that 1000 acres of corn, he owns 100 acres. So, throw $250 an acre for rent on top of the $450 an acre (add in probably $50 in crop/hail/farm insurance), you're looking at $750 an acre of input costs.
200 bu corn @ $3 is what, $600 gross? Looks like a net loss of $150 an acre over an assume 900 acres, or $135,000 on those acres.
There are certainly farmers that are still racking in cash hand over fist, paid off ground, paid off machinery, crop share agreements with landlords, etc., but the reality is that the farm economy is on the 5th year of pretty shitty cash prices, outside of a few small time frames in each year where the crop could have been marketed for a profit. And most farmers aren't going to forward contract 100% (hell, even 50%) of their expected production when we get summer price run ups because their crop is not made yet.
But yes, this death tax really won't affect many farmers. Some, sure, but not many. We've got a few guys locally that own 1500-2000 acres that it could hit, but that's pretty rare.
Since you seem to be so knowledgeable in these subsidies, what can a farmer expect to get year to year from the government? Please answer in $/acre benefit from these subsidies that actually comes to these farmers as deposits into their bank account.
I'll wait...
Correct, I was providing a scenario where someone owned 1000 acres free and clear of debt. This would be super rare to own it and still farm it.
Lots and lots of businesses that also provide food for the world?
I don't like subsidies any more than the next guy but this is what the United States Government has put in place.
And where does the products they sell come from?These guys run on pretty slim margins:
Serve billions, last I'd heard.
