Tax Options Amid Drought Conditions
A one-year tax deferral is available for all types of livestock (draft, dairy breeding and feeding) if you qualify as a cash basis farmer or rancher who sold livestock early due to drought conditions. Draft, dairy and breeding livestock producers have a second option of a four-year deferral as well.
Additionally, crop producers can elect to defer income for crop insurance payments due to drought; however, there are a few specific caution areas of which producers should be aware before making a final decision.
In this Center for Agricultural Profitability article, Nebraska Farm Business, Inc. Director Tina Barrett reviews all of the factors that farmers and ranchers should take into consideration before electing these tax deferrals on drought-impacted crops and livestock.