NW Ohio | Archery dog - 12/11/2018 06:46
The kinfolk allowance, allows you to spread program , i.e., Donnie's dollars, csp, arc ,plc, equip, and others to more members of your current family. It's pretty common for farms to be split between a husband and wife , but you can also split it with children.With the implementation of Donnies dollars, lots of operations will leave dollars on the table with the 120,000 dollar cap. I know of one neighbor with 7000 acres of soybeans that is only split two ways, if you do the numbers , this guy lost close to half a million dollars by not being set up correctly. Some folks have no kids to partner with, so this is where the nieces, nephews, and cousins come in. I do think they must participate in the production of the crop , if it is only in a management form.
The 900,000 is the same simple adjusted gross income statement everyone signs to participate in programs, it is in no way a dollar amount that is being facilitated by the government. It is the adjusted gross income of your farming operation. If you are at the 900000 dollar figure , you are out of the program.Hope this helps.
Not completely sure on this, but if this guy opted out of the government program ARC or PLC for 2018, he could change the way the farm is set up. He would be foregoing any iffy payments for the 2018 program, which won't be known until next October, but could cash in immediately for the MFP payment. |