We have compiled the following so you can stay current on the latest farm issues affecting individuals and business professionals.
Please contact Dave Fortney (via phone: 937-575-2119 or email: dfortney@mccrate.com) or Sarah Stammen (via phone: 937-492-3161 ext. 122 or email: sstammen@mccrate.com) if you have questions regarding farm changes.
Farm Industry Issues
Deferral of Insurance Proceeds
Farmers are not eligible to defer crop insurance proceeds related to crop protection revenue. If you received insurance proceeds related to a Crop Revenue Coverage (CRC) or a Revenue Assurance (RA) policy, you are not eligible to defer. Farmers may still continue to defer crop insurance proceeds related to qualifying weather-related events, such as droughts, floods, wind, hail or frost. A farmer must incur a physical loss of yield from a weather-related event in order to defer the income. If you received insurance proceeds related to both, only the portion associated with the weather-related event is eligible for deferral.
To defer crop insurance proceeds, deferring the sale of crops to the following year must be a normal business practice. The IRS guidelines on normal business practice require that 50 percent or more of the crop sales must normally be deferred into the following year. Each crop is examined on an individual basis.
