Mid Sized operations receive “mid” payment from the government.

The latest ARC and PLC payments for 2025 will be ginormous, weighing in just shy of $14 Billion (yup with a B). That is roughly the equivalent ½ of what the government acknowledges it has spent on just bombs and missiles in the Iran war through September.
Don’t worry though, unlike defense contractors, farm operations have a sequester of 5.7% (hold back) rate, so the when Washington says $13.8 Billion, they mean less $787 million because the rules say so. What the rules and the USDA didn’t say is when the payment comes. That will make end of tax year planning entertaining as it could hit in 2026 or 2027, just depends on when the math is done and your updated 902 is on file.
Don’t forget after that sequester, then a cap of $160,000 for payment limitations is imposed. If you are over the payment limits, by the government math, your sequester payment is not really in play so you get the full payment cap at $160,000. Ir you are under $169,000 or in payments, fret away, as your payment does take the sequester hit and you leave money on the table. The BTO (big time operators) now have a little more cheese to work with. Gee what could those operations do with that extra cheese, donate to a PAC? Raise their bid on a piece of equipment or farm rent to push off a smaller operation? Golly, that would never happen. Lesson learned here is the big get bigger.
Drink some Ruby Red-Maybe.
You can now throw dyed fuel (highway tax exempt) into your highway operational farm vehicles by virtue of temporary executive order. Designed to relieve stress over sky rocketing fuel costs, it sounds good and like a win and a great sound bite . Off road use of dyed diesel is already exempt (that is what the credit on the tax return does you pay the tax and then get the credit). This event is hey you can use it on the road… potentially.
The order says determine if relief is authorized under existing tax law and if so, defer it. That is different than hey it doesn’t apply. Deferrals are different that full relief. (remember football deferring the decision on the kick off or the deferral to be drafted.. the event remains pending). It doesn’t touch the excise tax or the underground storage tax
The order does tell the IRS to not impose the penalties it can. First ,its temporary and can change. Second, Operators should keep invoices and records, don’t mix fuel types. Finally, it doesn’t apply to any state level tax. If you cross stateliness, you could have categorically different results based on the badge that pulls you over.
I do wonder how you scrub all the red dye back out of your fuel systems once the exemption is expired. I imagine the argument with the inspectors already
Per Diem Travel
Business per diem Travel rates are up to $230 for standard and $329 for high rent districts.
Document then distribute
A tax payer took $16.5 million from another tax payer to fund the purchase and resale of items. No written agreement. The parties made a promissory note later. The IRS called that transfer gross income, not a loan . The court considered the following when determining what was a bond fide debt 1) the absence or presence of at the time documentation, 2) interest payment provisions, 3) a repayment schedule, 4) collateral or lack of to secure the alleged note, and 4 lack of any stated purpose for the alleged note. A small lawyer drafting fee would have prevented a 36.07% income tax whack ($6,055,00) on that $16.5 million.