RISE & SHINE
Growing a Brighter Future for Ohio’s Farms
TABLE OF
CONTENTS
2
How To Get Through
The Dairy Farm Crisis
Brian Kempf
3
Bank Financing
Guidance And
Considerations
Doug Houser
4
Are You Planning
For Succession?
DEAR READERS,
Those in the farm and agribusiness industry have embarked on the first few months of the year with uncertainty.
The dairy farm crisis continues to make headlines, crop prices remain lackluster and the partial government
shutdown in January are all reminders that, when times get tough, we can’t always rely on the government and
access to subsidies to save the day. With that in mind, this issue of Rise & Shine focuses on the opportunities
and solutions that currently exist and how, with a little planning, you can identify a path toward sustainability
and growth.
As we contemplate the year ahead, your first item of business should be to seriously consider the next five years
and whether you are willing and able to further invest in your farm or company. If continued investment isn’t
part of your plan, the next decision must be to determine whether it makes more sense to ensure the general
survival of your business over the next few years or to cut your losses sooner rather than later. This difficult
decision will require you to evaluate your debt load, your debt-to-asset ratio and how much risk you are willing
to take on. Even though the current state of the market might be telling you to hold on a little bit longer, getting
out now might actually prove more economically favorable in the long run. We’ve included an article in this
edition that will help you better understand your loan documents and their impact on your farm’s future. Check
it out on page 3.
Ben Froese
5
What Do The Final
199A Regulations
Mean For You?
Joel Yoder
6
Is Your Rental Income
Still Considered QBI?
David Shallengerger
7
A Second Set Of Eyes
Can Provide Peace
Of Mind
Succession planning is a hot topic. Regardless of whether you’re planning to retire in the next few years or in
the next decade, it’s important to keep the topic of succession front and center – not just among your trusted
advisors, but among your family, too. You will also find a great succession planning article in this newsletter
that will shed additional light on this topic. To supplement this piece, I want to take this opportunity to remind
you to explicitly ask your children whether they want to take over the family business after you retire. And
then, ask them again … and again … and again. People’s minds change. Goals change. Lives change. Just
because your child wanted to follow in your footsteps five or 10 years ago, that won’t necessarily always be
the case when it’s time for you to retire. It’s up to you to keep the conversation alive.
Finally, this edition of Rise & Shine will also take on the topics of royalty audits, the dairy farm crisis and
general insight into the new qualified business income (QBI) regulation and whether land rental will qualify.
I hope you find this issue to be informative. If you would like us to cover specific topics in future editions of
Rise & Shine, send me an email or give me a call. I would love to take your suggestions as we work to make
this quarterly newsletter as valuable as possible.
Sincerely,
Scott Moyer
Vol. 2 | Issue 1 | Spring 2019
Brian Kempf, CPA
Principal
212 N. Washington St, Millersburg, OH 44654
330.521.4549
[email protected]