Use Prepaid Farm Expenses as Year-End Tax Planning Strategy
By David G. Mayer Jr.. Wisconsin Agriculturalist
With the end of the 2020 calendar year upon us, prepaid farm expenses are an area of concern for many farmers as they execute year-end tax planning strategies.
A typical cash basis farmer may spend significant amounts to purchase prepaid farm supplies such as feed, seed, fertilizer and other items to adjust taxable income, lock in the price for inputs for the following year and guarantee the availability of farm supplies.