Brocket's Ag Advice IM By John E. Brockett jH Farm Management Agent Lewistown Extension Office How tax laws affect farms A while back an attorney wrote a real good article in the “Hoard’s Dairymen” on tax laws that work against the bonafide farmer. While reading the article, the first reaction is that he was wrong. After all, what is wrong with someone buying cows to get in vestment credit and possible capital gains upon their resale? As a matter of fact, the letters that were written to the magazine ItLaJCita. Sawdust Days OVER 30% OFF All Makita Hand Tools In Stock. Offer Good Thru The Month Of June. THURSDAY, JUNE 20th FREE coffee and doughnuts Along With Tool Demonstrations By Makita Representatives Until 8 P.M. T| fJt » “• Q 5008 NB I -jjtj » .g* ,^p JR3OOOWL "J 6012HDW H W 90058 LSI4OO 6510LVR BLUE BALL MACHINE WORKS INDUSTRIAL EQUIPMENT & SUPPLIES Mon., lues., Wed., Fri. 7:30-5:00; Thurs.7:3o-9:00; Sat. 7:30-11:30 Made It Simple! We BIRCHmEIER has the Back Pack Sprayer for you DeL Write for Complete Catalog On Greenhouse and Nursery Supplies opposed his ideas. Let’s explore the thing in a little more depth. One letter said that it was good for him to have people buy his embryo transplant heifers because it helped his income, thus it was good for all agriculture. The letter writer’s shortsightedness did not recognize that this milk from those heifers was going to compete with his own milk in a limited market. Thus in the long run he may Established 1884 Blue Ball, PA 17506-0218 P.0.80x 218 (717) 354-4478 Grower Supplies, Inc. actually lose more from reduced milk prices than he gained from the sale of a few heifers. What about the large number of farmers who do not have transplant heifers for sale? No, I am not saying farmers should sell animals to non farmers. I am saying that, perhaps we, as farmers, should see if there are not ways that we could prevent farming from being a tax shelter. Parts of the proposed tax law address this question, but these are the parts that will be least likely to survive. Reason; both farming groups and effected investors oppose the change. I guess that most farmers are reconciled to allow non-farmer investors to run agriculture in the future. Here are the laws that encourage outside investors; • Investment Credit for farm assets. • Safe Harbor leasing. • Capital Gains for dairy and Accessories Spray Boom (4 Nozzle) Spray Shield w/nozzle Extension Tube 41" to 80" Brass Adj Nozzle 5 gallon Senior only stocked at Lititz. Other sizes can be shipped by UPS from factory. Technical data Weight No Tank Capacity Max Work Pressure 546 B E. 28th Division Highway Lititz, Pennsylvania 17543 Phone: 717/627-6737 • PROTECT YOUR CATTLE WHEN THEY DINE. • There are more cattle lost by metal penetrat- I ing the stomach than most farmers realize. The • cost of just one 1-1200 lb. animal would equal the • cost of several Snatcher Feed Hoppers. • • “a stitch in time saves nine,” ! •So Protect Your Cattle When They Dine S • or ; •Write To Box 2300, RJ). 1 Jonestown, Pa. 17038* • QUALITY - Built with Swiss clockhke precision • LIGHTWEIGHT-With the comfort of the user in mind • ACCESSIBLE - A durable self-lubricating and external pump assembly • SIMPLICITY - Insures cleanliness and longer wear No tools necessary to dissemble and repair • PRICING Here's one instance where you pay less for the best FLOX 7Vi gal SENIOR 5 gal IRIS 3Vi gal 11.4 3 9 gals 2 6 gals 5.2 gals 84 PSI 84 PSI 84 PSI breeding stock. • Rapid depreciation of depreciable assets. Do these also help farmers? they do, but is the tax help worth the loss of income because of competition in the market place with people who can and even desire to sell at a loss (it too is deductible)? The answer is not an easy one because in the past some of the innovations and technical changes ur farming have been brought by interested non-farmers who had a desire to do some farming. Perhaps we should start with one point at a time. I would suggest starting with the loss area first. Why not limit the amount of loss that a non-farmer could take against other income to either a percentage of that*income or a set figure? Which tax laws work against farm families directly? One is the law that forces a person to charge an interest rate that is higher than wme other sources or than the bank will pay on borrowed money over $lOO,OOO. Why is that necessary? Another one is the law that requires that a family sell the farm to a child at market price. Why not allow the farm to be sold at agricultural value the same way it can be inherited? For More Information Call 717/865-4289 : Restart your whole farm ; • with the number one PTO I I the world over! isi<• I || HP • P.V.C. White Rail Fence 2,3 or 4 Rail • 12 1 • Winco PTO Generators PVC Fencing • * for Home and Farm and Porch Furniture • Lancaster Farming Saturday, June 15,1985-D5 Keoughs (HR10) Did you know that if you have a Keough Account you will have to file a return this year? Well you will. My suggestion is to ask the - company who sold you the plan to help you fill it out. They will probably have to provide you with part of the information anyway. The deadline date is the end of July. I’ll have more on this later when it comes closer to the deadline. It may be possible to roll over your Keough into an IRA. That would not eliminate the Keough tax return for this year, but would for the future. Check with your company-if they say no, then check with someone else. referendum WASHINGTON - The wheat referendum is scheduled to be held July 19 to 26. All known producers who had a wheat allotment m 1977 will receive a ballot. Any wheat grower who had an allotment in 1977 and does not receive a ballot, should contact their local ASCS office. Ballots will be mailed July 15th. USE THE SNATCHER A Stainless Steel Feed • Hopper, loaded with ; magnets designed to draw Z metal from Silage and • Grain Feed. • £3 Remember Don’t wait for a power failure Invest in peace of mind **&&&£ 4L- **■» • Maintenace Free • Won’t Crack, • Never Needs Chip or Rot Paint • 20 Year Warranty Lester C. Shirk R.D.3, Box 414 Myerstown, PA 17067 (717) 933-4977 Wheat
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