NEWS
Taxlink by Andy Biebl
Andy Biebl DTN Tax Columnist
Mon Aug 18, 2014 12:31 PM CDT

Hedging, when done properly, is designed to minimize price risk for commodity producers. But while economic risk might be minimized, IRS risk can increase.

The tax law defines a hedge as a transaction in the normal course of business to minimize the risk of price change with respect to inventory or supplies. This requires a producer to have a hedging position that's opposite the physical position on the farm and within normal production ranges. For example, if a producer in the middle of the summer growing season is concerned about a potential decline in the corn price, his physical long ...

Quick View
  • Back to Beans Growers considering moving a field from continuous corn back into soybeans should pay special att...
  • The Attraction of Youth Combine genotyping with a yearling bull, or even a weanling, and you're less likely to make a poo...
  • Kubota Steps Up A new mid-range, high-horsepower M7 tractor moves this company into the row-crop arena.
  • SCO Sticker Shock Costs and potential disconnect with county yields make the Supplemental Coverage Option a hard se...
  • Clean Water Goes a Long Way Cleaning up 900 feet of a small creek in Kentucky brings rebirth to water once choked with sedime...
  • Clean Air Lawsuits Filed Several environmental and animal-welfare groups argue in two lawsuits that there is well-document...
  • Ag and Environment Outlook Agriculture continues to watch how the U.S. Environmental Protection Agency implements the propos...
  • Surgery on Plastics Dharma Kodali's goal is to insert soybean oil in the basic ingredient list for PVC plastics.
  • Ask the Vet How should I treat a cow with a swelling on her flank?
Related News Stories
Surgery on Plastics
Ag Policy Outlook
Ag and Environment Outlook
Ethanol Outlook
Few and Far Between
Humane Livestock Handling on the Farm
Ask the Taxman by Andy Biebl
Klinefelter: By the Numbers
Build a Market for Your Hay
Rural Royalty