Tax-planning: the sooner, the better
September 22, 2022
As we head into the last few months of 2022, that means it is time for our member farmers to implement tax planning strategies to help minimize tax liabilities. Proper tax management can be important to your bottom line. By employing effective tax planning strategies, you can save money that can be reinvested into the farm or saved for future projects and expenses.

In order to have successful tax planning, you should maintain accurate financial and accounting records to make informed decisions. It is best to think about meeting with your tax advisors and accountants prior to year-end to discuss individual tax and financial opportunities to properly implement tax saving strategies.
There are many methods to help decrease taxable income for the year. One of these methods that DFA Financing, provided by Agri-Max Financial Services, can help with is prepaying for inputs and other allowed items as well as capital expenditures. Prepaying for seed, fertilizer, and other needed supplies or buying a new equipment are just some ways to plan ahead when it comes to a tax-planning strategy. There are additional ways to decrease taxable income but this method allows you to invest back into a thriving farm operation that will help it to be successful for the next year.
We know that harvest season is already stressful enough, but can reiterate how important tax planning is on your bottom line. As you finish out September, get your records in order, make a plan to meet with your tax advisor and set a strategy for how you want to finish the year.
If you have questions, or would like talk through anything with us, please feel free to reach out to your local loan officer.
You can find your loan officer here.