Date of this Version
Cornhusker Economics, November 17, 2021
Agriculture has always been an industry with cyclical income trends. Prior to 2003, the average farm income reported in our annual data would typically go up and down each year -- having a good year and then a bad year and then a good year again. Since then, the trend has been more about longer periods of good, followed by multiple years of down income, etc. These longer stretches also see more extremes and this makes tax planning even more important and more difficult. More important because we are likely not making a decision that only affects one year and more difficult because the extremes make the decisions even bigger. Throw in the fact that Congress keeps changing the rules and there is plenty to talk about!