Macon County has been selected by Farm Progress Companies to be the semi-annual site for the Farm Progress Show for the next 20 years. Beginning in late August of 2005, the nation's largest agricultural exposition will be located north of Richland Community College in a permanent exhibition field to be constructed specifically for the event. In odd-numbered years the Show will be held locally, and will be focused on Illinois and Indiana agriculture, and in even-numbered years the Show will rotate to various sites in Iowa.

Central Region Business Manager Don Tourte of Farm Progress Companies said it just made sense for the Farm Progress Show to be located at "America's Agribusiness Center." Decatur was selected from 12 Midwestern communities based on the proximity of the show site to Richland, the support offered by the local area, and the prospect of an all-weather exhibition field that will include drainage and septic systems, permanent electric and telecommunications utilities, and permanent exhibition buildings constructed by many agribusiness firms. Funding for the infrastructure improvements comes from a combination of state grants, local contributions, and the generosity of numerous individuals and companies in the Decatur area.

The exhibit field will be just east of Brush College Road and south of Mound Road, which will be extended to the east to connect with Christmas Tree Road. Richland Community College will suspend its classes for the week of the show, and its facilities will be available for numerous educational offerings during the Show. Beginning with the 2004 Farm Progress Show at Alleman, IA, the Show moves to an advanced schedule of the Tuesday, Wednesday, and Thursday prior to Labor Day. That will allow more Midwestern farmers to attend the show, compared to the usual late September dates when harvest kept many at home.

Typical parking areas, demonstration fields, and camping areas will be adjacent to the show site on land that belongs to Richland, Archer Daniels Midland, the Joe & Norma Boyd family, and the Vernon Hebel Family.

While the Farm Progress Show will occupy the site for only 45 days in alternate years, Farm Progress Publications plans to expand its farm show offerings and bring other shows to the permanent Macon County exhibition park. Additionally, advertisers have informed Farm Progress that the opportunity to erect permanent exhibition facilities would allow them to conduct continuous training programs.

This is a significant economic development for the Decatur area, and a salute to the strength of the local agricultural community. Let's welcome the Farm Progress Show as a member of the family.

The excellent corn crop of 2003 and the higher corn and soybean prices that occurred this year have left Central Illinois farmers in a situation that we have not experienced for quite some time. The value of the January 1st grain inventory that would be sold in 2004 was substantially higher for many farmers this year. When this is coupled with the higher prices that may have been received for this 2003 produced grain, the result on many farms is income far in excess of the past few years. In many cases, this old crop grain income exceeds that of recent years, which included the old crop sales, and a portion of the current year's new crop production.

While increased farm income is usually a good thing, the higher tax liability that accompanies the income is not always welcome. It is imperative that farmers analyze their tax liability before the end of the year. The earlier this tax planning occurs, the more time there is available to adjust the net farm income and the resulting tax liability. Ideally, this planning should take place before any payment is received on any new crop sales. Farmers who take payment on a portion of the current year's crop before the end of the year may find themselves in an undesirable tax situation if they fail to plan adequately.

There are several tools that can be utilized to reduce net farm income. One of the most popular and widely used is the Section 179 Expense Election. This provision of the tax code allows farmers to deduct up to $102,000 of their capital purchases as a 2004 tax year expense. Another tax advantage that can be used is bonus depreciation. The tax code allows that 50% of the purchase cost of some new assets may be deducted in the current year. This deduction is taken after the Section 179 expense election, if it is used. Certain assets are not eligible for these elections and farmers should check with their tax advisor to see if they qualify.

Prepaying expenses for the following year's crop inputs are another popular tool for managing income. Unfortunately, many farmers already use this method to the fullest. There are limits and rules that must be met. Consult with your tax advisor to make sure that your expenses qualify.

Another option that is available and may come into play for farmers this year is Farm Income Averaging. Farm income averaging allows a farmer to utilize portions of lower tax brackets that were not used in the previous three years. For example, a farmer's taxable income in each of the previous three years may have fallen in the 15% tax bracket. This year his taxable income is in the 25% tax bracket. He may elect to carry back to each of the previous three years, equally, an amount that would utilize the remainder of the 15% brackets in the earlier years. In effect, a 10% income tax savings may result on the amount taxed in the lower brackets. Farm income averaging will not work for everyone, but can be beneficial in some instances.

In years of higher income, retirement plans should not be overlooked. The rationale behind retirement plans is that taxpayers contribute to the plan in years when income tax brackets are higher and withdraw the money after retirement when the taxpayer is in a lower tax bracket. Keep in mind that a taxpayer may have to cash flow more dollars to save some income tax, but the money going into the retirement plan still belongs to the taxpayer.

These are a few of the tools that are available. Depending on your situation and your income levels, these or other tools may need to be utilized to manage your tax liability. All farms may not have higher income. In some cases income may need to be brought into the current tax year. Keep in mind that for active farmers, the income tax is only a portion of your federal tax liability. For some farmers, Self-Employment taxes can exceed the income taxes. Please consult your tax advisor early to manage your own tax situation. It may be the best money you spend all year.

- Robert Daggett, Area FBFM Fieldman

Harvest is upon us and more of us are going to spend more time in grain bins in the next several months than we will all year. In the September issue of Prairie Farmer the following information was provided by Bill Field, Purdue University Farm Safety Specialist about grain bin fatalities. Please read the entire chart and remember what it says before you go into a bin alone with the auger running.

Timeline to death by suffocation

0 seconds...............Standing over center of auger, top of grain

Clog breaks free, auger running. Grain flows.

14 seconds..............Nearly knee-deep in grain

15 seconds..............Trapped, unable to move

16 seconds..............Free-fall ride begins

17-59 seconds..........Scream for help

60 seconds..............Body out of sight

61 seconds............. Mouth and nose fill with grain

61-180 seconds....... Oxygen supply shut off.

180-240 seconds...... Brain damage likely.

240-300 seconds.......Skin Discoloration sets in.

5 minutes...............No pulse – flatline. Dead

Note: Assumes 15,000-bushel bin, 8-inch unloading auger, and unloading 600 bushels per hour. If you're loading a semi in 12 to 15 minutes, flow rate will be much faster and timeline shorter.

BE SAFE AND LIVE, we need you around.

Unlimited Helps with Those Little Aches and Pains

Harvest is fast approaching! While you are checking over the combine and getting the trucks ready to roll – think about this:

Were some tasks not as easy to do? Is that seat, which had been pretty comfortable, now feeling like a Swami's bed of nails? Does it feel like you've been through opening day of the Bears' training camp after a full day in the cab of the combine? Is it just harder to climb those steps into that cab? You don't have to just grin and bear it.

AgrAbility Unlimited, a joint program offered by The Illinois Easter Seals Chapters and University of Illinois Extension, is a wonderful resource for assistive technology that will ease some of those aches and pains. AgrAbility typically comes into the picture after those aches and pains get to be serious, life-altering disabilities. Looking at how things are done and how those tasks can be adjusted, changed or eliminated or less physically challenging could well determine how much longer you are actively farming. The Agricultural population is getting older and with age comes chronic health problems: arthritis, diabetes, stroke, heart conditions. Assessing the jobs that must be done on the farm and looking for ways to modify your equipment could, to some extent, reduce the effects of chronic health conditions.

For example, putting bin level indicators on your bins could reduce the number of times you have to climb that ladder to check on grain levels. Replacing ladders with stairs makes those trips up and down the bin easier and safer. Using shock-absorbing gloves can ease the pain of arthritis in the hand and wrist. Put an extra step on the tractor or combine to reduce the strain on the knees and hips. This and a lot of other ideas (many of them developed by farmers just like you) are only a phone call away. There are even resources available to help finance the more costly ideas.

To contact the AgrAbility program call or write Mike Brokaw at:

800/500-7325 x126 (in Illinois) or 217/429-1052 ext.126 (Decatur Area)

Or write to:

AgrAbility Unlimited

2715 N. 27th St.

Decatur, IL 62526

mikeb@agrabilityunlimited.org

- Mike Brokaw, AgrAbility Unlimited

Out in the field harvest is under way and life is good. There are good yields in both corn and soybeans, and you will harvest a lot of grain. But, how much have you marketed and have you made a marketing plan? The outlook for corn demand after harvest is very positive according to Extension Marketing Specialist Dr. Darrel Good, University of Illinois. Foreign exports are forecasted to be good and the domestic demand for ethanol production reaches a new level each quarter. So the opportunity for prices to stabilize after the first of the year looks promising.

Soybeans are another story. Domestic demand appears relatively stable, but possibly increasing. Foreign demand is somewhat questionable with a great deal of oil stocks available and a lot of beans in South America. Also, we have a really good crop and lots of supply availability in the US.

Things to consider in your marketing strategy is how can I use the loan program, what is my actual cost of storage, are put and call options on the Chicago Board of Trade workable, or are you just going to do nothing to see what happens. William Shakespeare once said, "To decide, not to decide, is to decide." In other words, if you don't make a decision on what to do, you are basically saying I have decided to take what ever the market says I can have. That is a great way to throw away your profits.

- Paul Mariman, Farm Business Educator