For many cash basis farmers, significant tax savings can be achieved by donating grain directly to Farmer-to-Farmer. Cash charitable contributions are deductible only as an itemized deduction from adjusted gross income which results in reducing federal income tax only. Many farmers do not itemize deductions because the standard deduction has greatly increased over the years. By contributing crops to charity, the cash-basis farmer avoids including the sale of the cash crop in income and can still deduct the cost of growing the crop, which results in saving self-employment tax, federal income tax, and state income tax.
For more information check out this article by the Gordon Fischer Law Firm. https://www.gordonfischerlawfirm.com/bountiful-harvest-charitable-giving-gifts-of-grain/
For those of you in Eastern North Carolina, Farmer to Farmer has accounts set up with Purdue Farms and Rose Acre Farms. In other parts of the country, contact your grain elevator or coop and the closest Farmer to Farmer board member to you to make sure things are set up properly.
The farmer should always consult with his or her professional tax or legal advisors to determine tax implication prior to making the gift. Because of rapid changes in tax law, information provided here may be obsolete.
| Don & Bonnie Vos—Oskaloosa, Iowa | dbvos@mahaska.org | 641-660-1191 |
| Frank Reitsma—Pella, Iowa | fc_reitsma@yahoo.com | 641-295-4279 |
| Stan & Karen Wynia—Sioux Center, Iowa | stanwynia@gmail.com | 712-441-1308 |
| Allen Hubers—Pinetown, North Carolina | ahubers@fastmail.fm | 252-944-6812 |
| Luke Bouman—Blyth, Ontario, Canada | LukeBouman@wfs.ca | 519-272-3994 |
| Geraldy Blandón—Managua, Nicaragua | geraldyb@partnersworldwide.org | 505-8272-4604 |
Farmer to Farmer: Nicaragua 