The overpayments that were forgiven had nothing to do with inventories or cheating. As I understand it, it was more an issue relating to structure change formula's, forage pricing etc. The applicants overpaid had reported the correct data, it was the adminstration that made the error. That is why they never clawed it back. It would have been different if it was farmer data submission errors.
It is hard for any administration to see what is going on in every single operation. They are only going to see averages.
You are correct in your comments about not being able to change what is correct. Is it an issue of areas such as classification of expenses on your tax returns in each year (separating interest from input costs, custom work charges including in chemical etc).
I think the biggest issue is cut off of the inventory at year end. How many producers give that number as of March 31 when their tax is getting done?
I will agree that the program has a fault in that if you have experienced poor years in a row that your reference margin is very low. Tell my why some farms are able to manage through it? Luck is part of it, but when I saw the database my accountant had in various RM's all across his region and you have reference margins in every RM from $50 per acre to $200 , what is each of them doing different? It didn't matter the size of the farm or the RM.
It is hard for any administration to see what is going on in every single operation. They are only going to see averages.
You are correct in your comments about not being able to change what is correct. Is it an issue of areas such as classification of expenses on your tax returns in each year (separating interest from input costs, custom work charges including in chemical etc).
I think the biggest issue is cut off of the inventory at year end. How many producers give that number as of March 31 when their tax is getting done?
I will agree that the program has a fault in that if you have experienced poor years in a row that your reference margin is very low. Tell my why some farms are able to manage through it? Luck is part of it, but when I saw the database my accountant had in various RM's all across his region and you have reference margins in every RM from $50 per acre to $200 , what is each of them doing different? It didn't matter the size of the farm or the RM.
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