The U.S. Department of Agriculture (USDA) releases farm income data three times a year. In 2020, these statistical forecasts fluctuated dramatically. The first report, published in February of 2020, predicted a mild increase in net farm income from 2019 to $96.7 billion.
The end of the year and the start of a new one represents a time when farmers and ranchers begin preparing for the imminent tax season as the deadline to file taxes for small agribusiness owners is April 15th. Getting a head-start on tax preparation for your farm can result in more deductions that equal less taxable income and more savings in the coming year.
The unpredictability of the agricultural industry combined with its essentiality makes it both volatile and steady in nature. Farmers have the freedom to be their own boss, are an integral part of society, and can rest assured knowing that their work will always be needed. However, with this freedom and sense of purpose come unforeseen roadblocks—many of which are outside a farmer’s control.Read More
Zero down financing is a loan product that involves the financier to fund the full amount of the desired purchase without an initial down payment from the borrower. Although an attractive option for borrowers with limited cash flow when embarking on a new land investment endeavor, strings are frequently tucked into the fine print of these types of products and are a rarity among land loans. In fact, land and residential financing are commonly viewed the same yet carry distinct differences.Read More
As the historic events of 2020 unfold, AgAmerica’s Chief Economist Dr. John Penson has actively monitored the ongoing economic developments and their potential impact on U.S. agriculture.
For the second consecutive year, AgAmerica is honored to have made Inc. Magazine’s INC 5000 list. This year we’ve ranked #1498 with a growth rate of 294 percent among 5,000 of the fastest-growing privately held companies in the U.S. In our mission to serve the American Farmer, our team has witnessed substantial growth in both talent and volume. AgAmerica has continued to expand in order to better assist those who keep our world sustained, leading us to once again rank in INC. 5000’s list.
The volatile economic climate of 2020 has many farmers, ranchers, and landowners looking to secure their financial portfolio with low-risk investments rather than gambling collateral on high-risk stakes. Through COVID-19, rural real estate has consistently stood out as an outlier compared to the ups and downs of commercial, residential, and stock market investments.
In uncertain times, farmers and ranchers who are proactive about their financial situation are more apt to be able to play offense when the tides shift and new opportunities emerge. Liquidity is essential in maintaining the success of an agricultural operation but can prove difficult to obtain when you find yourself overleveraged and unable to stay ahead of a heavy debt load.
At the start of 2020, sentiment among American farmers was generally optimistic. The first phase of the U.S.-China trade agreement was underway with the U.S.-Mexico-Canada agreement right behind it. Farmer sentiment reached a record high in February and Secretary Perdue stated that Market Facilitation Program (MFP) payments would likely not be needed this year.
From labor shortages to volatility in commodity futures, the global impact of COVID-19 on U.S. agriculture has surfaced, but much remains clouded with uncertainty.
