By Emily Zuver, senior assistant accountant, Holbrook & Manter
Choosing between cash vs. accrual accounting is one of the most important financial decisions an agribusiness owner can make. Selecting the right accounting method can affect everything from tax planning and cash flow visibility to financing opportunities and long-term growth.
Sometimes our clients ask, what the “best” option is. The truth is, that depends. We help them decide what works best based on their business size, complexity, growth plans, and reporting needs.
Understanding cash vs. accrual accounting
The conversation around cash vs. accrual accounting starts with one simple difference: when income and expenses are recognized.
Cash accounting records revenue when you receive money and expenses when you pay them. It’s straightforward, easy to understand, and closely mirrors your bank account.
Accrual accounting recognizes revenue when it’s earned and expenses when they’re incurred, regardless of when cash changes hands. This provides a more complete picture of your company’s financial performance over time.… Continue reading
As farmers navigate another challenging year, the agricultural outlook varies widely by commodity and geography. Trey Miller from Farm Credit Mid-America to discuss current farm economy trends.
The Ohio Ag Net’s Ty Higgins visits with Farm Credit Mid-America regional vice president of ag lending Rudi Pitzer Perry about where growth is being realized in the agriculture sector, even within a challenging economy.
By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter
Running a farm or agribusiness means watching every dollar. Feed, fuel, equipment, labor — the expenses add up fast, and even a small dip in prices can squeeze your bottom line. The good news? You don’t need a big budget or fancy technology to spend smarter. A few practical changes can free up cash and make your operation more resilient.
This month I will share five straightforward ways to trim your costs without cutting corners on quality.
1. Get a handle on your fuel and energy use
Fuel is one of the biggest expenses on most farms, so it’s a smart place to start. Keep your tractors and machinery well-maintained — clean filters, proper tire pressure, and regular oil changes all help engines run more efficiently.
Plan your fieldwork to reduce backtracking and idle time. Combining trips or grouping tasks by location can save more fuel than you’d expect over a full season.… Continue reading
By Brian Ravencraft,CPA, CGMA, Principal, Holbrook & Manter
It’s never too early to discuss what federal income tax planning ideas may help a farmer minimize their tax burden, and what current-year review items could produce tax savings at filing time,
Relevant law
Since most farmers are cash basis taxpayers, they often have meaningful tax-planning opportunities through the timing of deductions and income, depreciation elections, and farm-specific methods and elections. Key provisions commonly implicated include:
Section 179 expensing. A taxpayer may elect to expense the cost of qualifying section 179 property placed in service during the year, subject to annual dollar limits and a taxable income limitation. Disallowed amounts may generally be carried forward.
Section 168(k) bonus depreciation. Qualified property may be eligible for bonus depreciation. For property acquired after Jan. 19, 2025, 100% bonus depreciation is generally restored permanently for qualified property, including most MACRS property with a recovery period of 20 years or less.
By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter
Now that it’s between planting and growing season, you may have some time to catch up on accounting items that were put to the side. What if you had someone who could consistently take care of these items, and you could give your attention to other tasks that are more of interest to you?
Outsourcing your agribusiness’ accounting tasks might be the best decision you ever make for your organization. You will save time and money with a team of experienced accountants at your disposal, helping you stay compliant as your business grows.
Here are some agribusiness accounting service needs that might be beneficial:
1. Estate/retirement/transition planning: Farmers approach this topic differently from other retirees. Retirement planning for farmers can look very different from others who have worked only in an employee setting. Careful planning is needed, and the farmer should look at overall asset management and retirement readiness as part of the process.… Continue reading
By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter
With tax season behind us, now is the perfect time to focus on ways to be more fiscally efficient within your agribusiness. It can be time-consuming to review and gather financial information to send to your accountant, I get it. However, it is always best to keep this information organized and current. Below is a checklist to help keep your financials on track and avoid year-end frustrations.
Record and categorize income and expense activity during the period.
This could include recording prepaids such as rent, insurance, etc.
Break out principal and interest on loan payments.
Reconcile bank accounts — identify and investigate discrepancies and outstanding items.
Review and follow-up on Accounts Receivable and Accounts Payable aging.
Audit inventory and adjust as needed.
Review specific accounts
Repairs and maintenance/office supplies — to see if any items listed here can be capitalized.
Meals and entertainment to determine if they are for business purposes.
By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter
Keeping cash reserves is a good practice for any business, no matter what the industry. When it comes to agribusinesses and farming operations, special considerations come into play. This month, we look at some things to keep in mind when budgeting and setting funds aside to keep in reserves.
Cash reserves give you vital breathing room. It ensures you can do things like cover payroll, buy feed, and maintain operations without relying on high-interest loans or dipping into personal funds to bridge short-term gaps.
A good rule of thumb is to have three to six months of operating expenses available in a liquid account. However, that can vary based on the size of your operation. The larger the farm or the business, the higher the fixed costs. We are talking about bigger payroll, extensive land leases, and large equipment fleets that need to be maintained.… Continue reading
By Brian Ravencraft, CPA, CGMA, Principal-Holbrook & Manter
Passing down a farm is more than a business transaction; it’s the transfer of a legacy. This process, known as succession planning, ensures the family farm continues to thrive for generations to come. Yet, many farmers delay this crucial conversation, often until it’s too late. I have seen it repeatedly throughout my career. This month, let’s look at why the time to start planning is now, and your accountant is a key partner in navigating the process.
Succession planning isn’t just about retirement. It’s a comprehensive strategy for transferring ownership, leadership, and operational responsibility. Starting the process between 5 and 10 years before you plan to step back provides the time needed to address complex issues without pressure.
Early planning allows you to align your personal retirement goals with the farm’s future. It gives the next generation time to develop the necessary skills and financial standing to take over.… Continue reading
By Emily Zuver,Senior Assistant Accountant, Holbrook & Manter
Hopefully, you aren’t experiencing much tax season panic as you prepare to have your returns prepared and filed. This time of year always presents an opportunity to reflect on how to organize things better moving forward. Something as simple as keeping better track of receipts, and I mean every single one of them, can make a significant difference. Let’s talk about that this month.
Every time you buy a bag of seed, a replacement part for the tractor, or even a simple box of staples for the office, you get a paper or electronic receipt, and you must keep them organized. Tracking receipts isn’t just about satisfying the IRS. It is a critical component of running a profitable agricultural business. Plus, many of those receipts are your tickets for valuable tax deductions.
The IRS requires proof of every deduction you claim. A credit card statement often isn’t enough; it shows you paid a vendor, but it doesn’t always prove what you bought.… Continue reading
By Brian Ravencraft, CPA, CGMA, Principal-Holbrook & Manter
Farming can be unpredictable. I am not telling you anything you don’t already know. Between weather, market fluctuations, and operational challenges, not every year is a profitable one. When your expenses exceed your income, you incur a net farm loss. Understanding how to properly account for it can offer a silver lining, potentially reducing your tax burden.
Meticulous record-keeping
The first and most critical step in accounting for farm losses is tracking every dollar that comes in and goes out. Without accurate records, you cannot substantiate your losses to the IRS.
Consider using dedicated accounting software to assist you here. Your expense categories should be specific, covering everything from feed, seeds, and fertilizer to fuel, repairs, and veterinary bills. Remember also to track larger capital expenditures, such as new equipment or improvements, as they are managed differently through depreciation. Consistent, detailed records not only prepare you for tax time but also help you make better business decisions year-round.… Continue reading
By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter
As the new year begins, I encourage you to take a moment to reflect on 2025. Celebrate your business accomplishments, learn from the challenges you faced, and recognize the growth within your organization. Now is the perfect time to set purposeful goals for this year. These goals can be big or small, professional or personal. Make sure they inspire you, keep you focused, and move you forward throughout the year.
A handful of our team members at Holbrook & Manter were asked to share tips from the following prompt. I thought I would share them with you. A goal all business owners should have going into the new year is:
“To identify a bottleneck or weakness in your day-to-day operations. By focusing your time and effort on improving this key area, you can quicklyturn a liability into an operational strength for the entire business.”… Continue reading
By Brian Ravencraft, CPA, CGMA, Principal- Holbrook & Manter
The turn of the calendar offers more than just a new season; it presents a crucial opportunity for financial reflection and planning. For farmers, a well-structured budget is the bedrock of a resilient and profitable operation. As you look ahead, the new year is the perfect time to evaluate your financial performance, adjust your strategy, and set your farm up for success. A thorough budget revamp helps you navigate market volatility, manage cash flow, and make informed decisions that will benefit your farm for years to come. Let’s look at some things you may consider doing:
Reviewing last year’s financial performance
Before you can plan for the future, you need a clear understanding of the past. A deep dive into your previous year’s financials is the essential first step. This isn’t just about looking at profit and loss; it’s about understanding the story your numbers tell.… Continue reading
By Emily Zuver, Senior Assistant Accountant- Holbrook & Manter
This is a two-part series on end-of-year accounting cleanup for farmers. See part one here.
Now that we are into the fourth quarter of the year, it is time to tackle another crucial task on the farm: organizing your books. End-of-year accounting clean-up is essential for your farm’s financial health and for tax preparation. Since there are many things to consider when it comes to end-of-year accounting, we have decided to do two separate articles. This is article two of two. The first article can be found in the October edition of Ohio’s Country Journal and online.
Review your income statements
Your income statement shows revenue, expenses, and profit over the year. Reviewing this document helps you understand your farm’s financial performance and identify trends.
First up, Ohio Ag Net’sJoel Penhorwood rides along with Donna Turner of Logan County for a special Cab Cam, brought to you by Precision Agri Services, Inc. After battling cancer and undergoing a bone marrow transplant, Donna is back in her “happy place” — the combine. With her grandson Dawson running the grain cart, she shares how farming and family helped her through and what it means to be back in the field.
Then, our ownDale Minyo talks with Gerry Puckett, Director of Communications and Industry Engagement forOhio Corn & Wheat, and Rudi Pitzer Perry, Regional Vice President of Agricultural Lending forFarm Credit Mid-America. They discuss how farmers can manage through today’s tough markets, the importance of focusing on what can be controlled, and how partnerships between groups like Ohio Corn & Wheat and FCMA help support and advocate for grain growers statewide.… Continue reading
By Emily Zuver, Senior Assistant Accountant- Holbrook & Manter
This is a two-part series on end-of-year accounting cleanup for farmers. See part twohere.
Now that we are into the fourth quarter of the year, it is time to tackle another crucial task on the farm: organizing your books. End-of-year accounting clean-up is essential for your farm’s financial health and for tax preparation. Since there are many things to consider when it comes to end-of-year accounting, we have decided to do two separate articles. This is article one of two.
Why end-of-year accounting matters for farmers
Farm finances are uniquely complex. Unlike traditional businesses with steady monthly income, farming involves seasonal cash flows, equipment depreciation, crop inventory, and various government programs. This complexity makes year-end accounting even more critical.
Proper record-keeping helps you understand your farm’s true profitability, identify areas for improvement, and make informed decisions about future investments. It also ensures you’re prepared for tax season and taking advantage of all available deductions.… Continue reading
This week on the Ohio Ag Net Podcast, the team dives into the heart of harvest season — from the combine seat to the credit office.
First up, Ohio Ag Net’s Dale Minyo sits down with Rudi Pitzer Perry, Regional Vice President Agricultural Lending with Farm Credit Mid-America in Washington Court House. The two discuss the cyclical nature of the ag economy, today’s downturn in the grain markets, and why risk management and proactive planning are key for farmers heading into 2026.
Then, Ohio Ag Net’s Ty Higgins climbs into the combine with Chase Finney of Finney Farms in Crawford County for another edition of the 2025 Cab Cam series, brought to you by Precision Agri Services, Inc. Finney reflects on this year’s corn yields, the challenges of a wet spring followed by a dry summer, and the importance of staying adaptable in an ever-changing growing season.
Next, our Joel Penhorwood rides along with Sam Kinney of Kinney Farms in Logan County for a look at the ups and downs of Ohio’s soybean crop.… Continue reading
By Brian Ravencraft, CPA, CGMA, Principal-Holbrook & Manter
I am sure you are aware of the changes in tax law, particularly from the “One Big Beautiful Bill Act” passed in July 2025. We continue to analyze all the changes and what they will mean to taxpayers. We plan to keep you posted in future articles as more changes take shape. However, for now, let’s take a quick look at several implications that affect the agricultural industry.
Tax relief and incentives:
Reduced tax rates: The bill makes permanent reduced individual tax rates and increased standard deductions, benefiting most farm households.
Increased small business deduction: The deduction for qualified business income is permanently set at 23%, aiding pass-through entities common in agriculture. Farmers should reconsider their entity structure to maximize tax efficiencies.
Estate tax exemption: The permanent increase in the estate tax exemption to $15 million per person (indexed for inflation) makes it easier to pass farms to future generations.
Dealer commitment or loyalty rewards can be a great incentive for a growing ag business. They can help free up working capital, build equipment inventory for the farm, or update your inventory. Overall, they can add value to the business while building a partnership with the dealers.
Dealers can offer different types of rewards. Point-based rewards are the most common. This is where customers accumulate points from their purchases, which can then be redeemed for discounts or products. Earning points-based rewards for purchasing seed from a dealer could result in a discount on future purchases or a new piece of farm equipment.
A tiered loyalty program can offer a more elevated level of reward to a purchaser. This level of a rewards program engages customers in their loyalty to the brand. Different levels of loyalty reached will enable customers to earn different rewards.
Another reward program offered is cashback offers.… Continue reading
Fraud: It can be a scary situation if you find yourself there, and it is becoming increasingly more popular. You may not think your business could be a target for fraud, but it can happen to anyone. Developing clear best practices can safeguard you against potential fraud schemes.
I’d like to encourage you to start by reviewing your bill payment process. Do you have a process in place? Typically, you would gather your bills, enter the information into the bill pay platform, and send the payments. Here are some tips to help you build best practices for your business.
First, gather bills that need to be paid. Decide on a frequency for when you will pay bills. This allows you to dedicate time and attention to bill payments rather than rushing through, which can help reduce potential fraud.
Request a W-9 from any new vendors you will be paying.… Continue reading
Ohio Ag Net | Ohio's Country Journal Ohio Ag Net | Ohio's Country Journal 
