From the Iowa Courts
In April, the Iowa Supreme Court and the Iowa Court of Appeals issues several opinions of interest to the agricultural community.
Farm Bill Makes Significant Changes to Margin Protection Program for Dairy
The Agriculture Improvement Act of 2018, passed by Congress this past December, made several changes to the MPP. The first notable change was the switch to a new name. MPP would now be called the Dairy Margin Coverage (DMC) program. Continue reading this post.
Cattle Trade Organization and Producers Sue Major Beef Packing Plants Alleging Conspiracy
On April 23, 2019, R-CALF and others filed a lawsuit in the Northern District of Illinois claiming several large packing companies “conspire[ed] to suppress the price of fed cattle they purchased in the United States from at least January 1, 2015 through the present.” Continue reading this post.
April 17, 2019 Applicable Federal Rates for May
Iowa's 2019 Legislative Session Ends
The Iowa Legislature has now sent SF 599, the Iowa Hemp Act, to the Governor. Passed by an overwhelming majority, the bill, once signed, would pave the way for future legal production of industrial hemp within the state. This passage, however, is just one in a series of hurdles that must be crossed before growers can legally plant and market industrial hemp within the State of Iowa.
Continue reading this post.
On April 24, 2019, the Iowa Legislature passed HF 590, a bill to regulate tax return preparers. If the bill is signed by the Governor, the new requirements would take effect 01/01/2020. Beginning on or after this date, “tax return preparers” (TRPs) would be required to include their federal PTIN on any Iowa tax return or claim for refund they prepare. A $50 penalty would apply to each violation unless the TRP can show that the violation was reasonable under the circumstances and not willful or reckless. The maximum penalty could not exceed $25,000 for any calendar year. The TRPs would also be required to complete at least 15 hours of continuing education each year.
Continue reading this post.
Last week, the Iowa House and Senate passed HF 768, a bill to enhance Iowa’s Beginning Farmer Tax Credit Program. Once signed by the Governor, the new law will strengthen a program that faced significant cuts in 2018. Under the bill, the Iowa Finance Authority may issue up to $12 million in tax credit certificates each tax year, an increase from $6 million under 2018 law. Notably, the $7.9 million in agreements that existed as of the end of calendar year 2018 are not included as part of the new $12 million cap. The bill changes the formal name of the program to the “Beginning Farmer Tax Credit Program” from the credit named the “agricultural assets transfer tax credit.” The program will continue to provide tax credits to eligible Iowa taxpayers who lease agricultural land (and associated improvements or equipment) to qualified beginning farmers.
Continue reading this post.
During Iowa’s 2019 Legislative Session that ended Saturday, April 27, legislators passed a number of bills impacting agricultural producers and rural landowners. This post reviews the highlights.
When Will the Syngenta Settlement Payments Issue?
It’s a fair question. The $1.5 billion Syngenta settlement was approved December 7, 2018, and the settlement agreement specified that payments could issue as early as the second quarter of 2019. Now that we are in that second quarter, do we know when the payments will issue?
The answer, unfortunately, is no. Continue reading this post.
Where are the 199A Rules for Agricultural Cooperatives and Their Patrons?
The proposed rules were sent for review to the Office of Information and Regulatory Affairs on April 2, and remain "pending review" at the end of April. We will keep you posted!
Donate to CALT
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Stay up to Date with the CALT Brief Podcast
Every other week, we will be recording a podcast to help keep you up to date on key issues in ag law and taxation. One podcast each month will focus on agricultural law and one will focus on tax law. Listen to our first CALT Brief Podcast - Ag Law edition - recorded April 17. Watch for our next episode, a tax law edition, to be posted later this week. We welcome suggestions for future podcast topics and guests!
Two Free Webinars Coming Soon!
On May 13, from 1:00 to 2:00 pm CDT, we are partnering with K-Coe Isom to discuss the Farm Syndicate Rule. Tax professionals who work with farm and ranch businesses and owners and CFOs of businesses that may be affected should attend this webinar. Participants will learn the history and competing interpretations of the farming syndicate rules, as well as its impact on new tax laws.
On May 14, from 12:00 pm to 1:30 pm CDT, we are partnering with the American Agricultural Law Association to bring you a free webinar addressing the current agricultural financial climate. This webinar will provide an agricultural finance update and tips for counseling financially distressed clients.
ICYMI: Filing Deadline Extended for Seven Iowa Counties
On April 16, 2019, IRS updated its March 25 announcement to state that Pottawattamie and Shelby Counties, in addition to Fremont, Harrison, Mills, Monona, and Woodbury Counties in Iowa have until July 31, 2019, to file most 2018 income tax returns and to make quarterly estimated payments. Iowa Department of Revenue followed suit with its own announcement on April 18. Read this post for more details.
The Center for Agricultural Law and Taxation does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. The Center's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.