Ag-Visors

By the time this article is published, most farmers and ranchers will have a fairly good idea of their 2013 plans, if they have not already finalized them. If there is one thing those in agricultural must be, however, is flexible. A periodic review of one’s plans and the progress made towards them can assist an operation to know if goals are being achieved or derailed.

Here we are at the start of a new year. For many, that means New Year’s Resolutions, reflecting on the past year and making plans for the new year. The agricultural community has had a couple of tough years. A continual drought, uncertainty in the political climate, high input prices… the list could go on. A year ago, most in agricultural were looking toward a good year, which did not materialize. Plans for expansion were scrapped for alternatives to just survive. Now, plans made for the 2013 year are being made on the assumptions that the drought will continue, Washington politics will remain stagnate and prices will continue to go higher. By the time this article is published, most farmers and ranchers will have a fairly good idea of their 2013 plans, if they have not already finalized them. If there is one thing those in agricultural must be, however, is flexible. A periodic review of one’s plans and the progress made towards them can assist an operation to know if goals are being achieved or derailed.

With the New Year starting, we are hoping it will be a great and profitable year for all of us in agriculture. Along with hope, we need a little assurance, which takes planning. We need to look at what we want to do with our animals to make them more profitable.

The most important part of winter feeding to me is not how much protein we can feed but the total calories. Protein is the most expensive nutrient and can be over fed. Too, much protein will tax the kidneys and liver while causing a G.I. upset. Mostly cattle need a certain amount of protein and then they need the calories, carbohydrates and fat. The rumen in a cow will tear apart protein and make their own. Therefore, we need to give them enough nitrogen from protein, with the building blocks from carbohydrates and fat to make what they need and to maintain or gain weight.

Livestock owners are permitted to take depreciation deductions on their farm to offset gross income, as well as to deduct reasonable costs of operating a livestock breeding operation or activity from other income.

Respiratory infection season is here for most animals and people. Generally, this is because the temperature swings and moisture increases, which are major stress factors. Stress causes the body to drop its defenses and become more susceptible to diseases in the environment. With a susceptible immune system, now we start getting a cough or snotty nose. As it progresses, the infection moves down the tract to the lungs and into full blown pneumonia. And while the infection is doing this in one calf, the coughing and snot is traveling through the air infecting others near this calf.

Last week I was reminded of one the most common mistakes everyone makes, (Failure to read directions on the label.) A client called with a bull calf that had been eating and drinking normal, on grain and hay, and the calf had died within 3 hours after feeding it. He also noted that the calf was sold and to be delivered the next week. In doing a post-mortem examination and visiting with the owner, the cause of death was determined to be enterotoxaemia caused by Clostridium perfringins type B, C or D. Now most of you will not be able to pronounce that so, I like to put it in lay terms of GUT FORM BLACKLEG.

In the Tax Court case, Richard H. Daley, T.C. Memo l996-259, an Arizona surgeon was denied deductions with respect to his cutting horse activity. The Tax Court, which in recent years has become more and more hard-nosed, concluded that the activity was not conducted for profit within the relevant IRS Regulations.

Section 183 of the IRS Code pertains to activities “not engaged in for profit.” This provision is used to disallow deductions for horse owners and all other farming-ranching activities as well as other ventures ranging from multi-level marketing to air charters. How this provision is applied and interpreted is something that the IRS Commissioner can and does influence.

Section 183 of the IRS Code pertains to activities “not engaged in for profit.” This provision is used to disallow deductions for horse owners and all other farming-ranching activities as well as other ventures ranging from multi-level marketing to air charters. How this provision is applied and interpreted is something that the IRS Commissioner can and does influence.