Funded by the Illinois Soybean Association checkoff program.

Jessie Shoopman

What Should My Adjusted Gross Income Be?

Each year taxpayers have the opportunity to work with their tax preparer to craft a year-end tax plan that provides a desired tax liability. Taxpayers may use current tax legislation to lower or raise taxable income by claiming more or less taxable income during the current tax year. While working through tax planning decisions, taxpayers may wonder “What should my adjusted gross income be?” This article discusses adjusted gross income and identifiable signals which answer that question. What is Adjusted Gross Income? Individual income tax returns have changed a bit over the past several years; not only in how [...]

By |December 20, 2020|

Steps to Creating an Entity

There are many reasons individuals decide to formalize their operation into a business entity. A variety of entity structures are available for business owners to use to accomplish the goals/objectives of their operation. Some operators use an informal operating joint venture instead of a formalized entity. Tax and transition planning are some of the most common goals of an entity. However, it is important to not only consider the tax implications but also keep in mind the overarching goals and strategic plan for your entity. Common Entity Types  1. General Partnership 2. Limited Liability Partnership (LLC/LLLP) 3. Corporation • [...]

By |November 6, 2020|

Accrual vs Cash: What’s the Difference?

How often have you received your tax return back with a Schedule F for your farm operation that doesn’t reflect anything close to what you had expected? Did you think “I know I made more money than that?” or “Where did all that money go?” In this article we are going to explore the reasons why your cash basis and accrual farm income aren’t the same and why understanding the difference is extremely important when making management decisions. What’s the Difference? Let’s start with the differences in the cash and accrual accounting methods. Cash accounting is exactly that—your cash [...]

By |June 30, 2020|

Balance Sheet Benchmarking: Know Your Numbers

Creating a balance sheet is one of the first and most crucial steps when considering the health of your farm and potential changes in your investments. A balance sheet evaluates total assets minus total liabilities, showing an operation’s net worth. The truth is that looking at the balance sheet can give clues to areas of strength or weaknesses. Keep in mind that MANY factors should be considered when reviewing the financial stability of an operation. As the manager and CEO of your farm operation, you have the ability to calculate and evaluate key financial characteristics that are found within [...]

By |June 20, 2020|

Preparing for Planting Amidst Social Distancing

By Todd Steinacher and Jessie Shoopman Amid the COVID-19 outbreak, we all need to do our parts and practice social distancing. At the same time farming doesn’t stop, so here are five steps you should take to prepare for the spring while protecting your and your communities’ health. 1. Prepare for herbicide application. Instead of arranging plans for herbicide application with your local retailer in their office, this spring you may not have the opportunity to meet in person for 2020 plans. Below are some tips to help your operation be proactive during social distancing so that your needs [...]

By |April 10, 2020|

Budgeting: What, Why and How?

By Jessie Shoopman and Emily Carls What? What is budgeting? More specifically, what is budgeting for business management? Budgeting can be defined as the process of designing, implementing and operating budgets. Budgets can be used in a variety of ways when talking about agriculture production: cash flow analysis, capital purchase management, enterprise analysis, long-range strategic planning, etc. Why? Why is budgeting important? The variability of the agriculture industry has increased over the last decade. When we look at the marketing year average (MYA) price for soybeans over the last 10 years (2009-2018), we see drastic changes year over year. [...]

By |April 2, 2020|
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