As U.S. crop prices remain low on the Chicago Board of Trade at the onset of what’s expected to be a record harvest, some farmers are seeking alternatives to storing grain, including donating crops, not cash, to local charities.
Bloomberg has reported that 4% of corn in the main U.S. growing area was harvested as of Sept. 14, marking the official start of the fall harvest. As previously reported, this year’s corn and soybean crop is expected to set records, lowering futures and pressuring farmers in the nation’s heartland to find alternatives to selling and storing and abundance of grain in grain bins.
According to a recent news release from the Nebraska Radio Network, as the harvest rolls on, some of Nebraska’s farmers are preparing to make grain donations to many charitable organizations. In addition to providing valuable crops to organizations that will put it to good use, many of the farmers are choosing to do so as an alternative to storage and the ability to get a tax deduction.
John Syverson, a certified financial planner, says in the story, “Not only do you exclude from income the amount of the value of the grain, which works better on your tax return and gets you lower taxation in federal, state and self-employment taxes, but you also get to deduct the cost of production of that grain because you had to pay for the input.”
As the harvest rolls on and commodity prices remain low, it won’t come as a surprise to see more farmers across the country donate crops to charities and seek alternatives to selling.