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More recent agricultural economics questions and answers
Is there list of people and offices that help disabled workers in agriculture?
The
AgrAbility Project is a national program that works to assist agricultural and
agribusiness workers who have physical and mental disabilities to adapt their
homes and farms in order to allow them to continue to work in agriculture.
Missouri AgrAbility Project Team
Karen Funkenbusch
Rural Safety and Health Specialist
On last night's news the reporter talked about small farming businesses and said that there were grants available to purchase a small farm. What types of grants are out there?
I am not aware of any grants that have money available for the purchase of land, permanent structures, most animals and most labor costs. The Missouri Department of Agriculture has grants that are "seed" money to help farmers or beginning farmers to try new ideas on the farm.
Debi Kelly
Missouri Alternatives Center
I just bought seven and a half acres of land to board and raise horses. I've been told purchases of feed and equipment bought for use on this land are not taxed. Is this true? How do I go about getting this tax-exempt status? Do I get a tax break on income tax next year?
Livestock feed, machinery, repairs, fuel and supplies used for agriculture production are not subject to sales tax. Most agriculture suppliers do not charge the sales tax when these items are purchased for farm use. Feed, repairs, fuel, etc. are income tax deductible items on IRS Form 1040F. Machinery and equipment will have to be depreciated. However, there is a section 179 provision that may allow it all to be deducted -- check with your tax preparer on this.
Melvin Brees
Missouri Value Added Development Center
My father and I both enjoyed working with the cattle while I was growing up. My labor paid for pasture rent for my half-dozen cows. We would like to rekindle that relationship now by my purchasing a minority share of his herd. Our tentative plan is to split the calf crop from my animals to cover his expenses. However, I want to be fair with my father. He is too generous. Is there a tool to calculate approximate annual cost per head?
The best method to develop a fair share arrangement is to estimate the labor and capital contributions of each party. You can then distribute returns and share operating costs based on these contributions. This can be done using a spreadsheet or simply a two-column pad. Estimate the value of each person's livestock, land, equipment and labor along with a fair return to each. Total each column and determine percentages for each party. Returns and operating costs can be shared based on these percentages.
While not specific to what you are proposing, NCR107, Livestock-Share Arrangements For Your Farm is available through MU Extension Publications or local Extension Centers. It has an example of how to determine each party's contribution to a shared arrangement and a blank form for use in your own calculations.
Your MU Extension Agriculture Business Specialist is familiar with the local area and can provide information for determining a fair agreement.
Melvin Brees
MO Value Added Development Center
I am taking care of someone else's cattle. What is the owner's share and what is mine? Is there an accepted split on calf crop?
The short answer
The person contributing the labor would get around 20 percent of the calf crop.
The longer answer
Traditionally, the beginning point for negotiations on a beef cow share arrangement was to value each party's contribution into the share arrangement, total those contributions, then split the calf crop according to each party's percent of the total contribution.
For example, the labor to take care of a cow for a year usually runs from 5 to 10 hours per head. The market value of that labor contribution would be between $50 and $100 per cow.
Value of your contribution
Cow owner contribution
The cow owner's contribution of $253 is 77 percent of the total. Your contribution. is 23 percent.
Joe Horner
Beef and Dairy Economist Extension Associate
Updated 5/19/08