How Could MFP Impact Your Taxes?

Farmers may face some unique income tax considerations for 2019, thanks primarily to unique income sources such as Market Facilitation Program payments intended to help during this trade war.  Barry Ward of Ohio State University Extension said when looking at the USDA's trade mitigation package there's still a lot that's not known regarding how to claim that taxable income based on the payment setup.

“As far as whether or not we will have next two traunches, if you will. Right now the only part that is guaranteed is the first 50% and how we will be able to claim those second two 25%.”

A second traunch, at this point, is scheduled for late fall.  And the final tranuch of MFP payments, if necessary, is expected to take place in early 2020.

“We'll know more as we go through the fall as to whether or not they are going to make those payments, and when they will make those payments, and whether or not there is flexibility when those payments are made,” Ward added.

Flexibility as in how such income is reported for tax purposes.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com