Missouri Farm Bureau’s board of directors approved a plan to purchase New Generation Cooperative Incentive Tax Credits from farmer members at 100% of their credit value.
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To help stimulate the development of new generation cooperatives and to help farmers maximize their state tax credits for investing in such cooperatives, Missouri Farm Bureau’s board of directors at its March meeting approved a plan to purchase New Generation Cooperative Incentive Tax Credits from farmer members at 100% of their credit value.
“The announcement by Farm Bureau is an example of the agricultural community working together to help farmers add value to their products and to improve their cash flow during these difficult economic times,” said John Saunders, Director of the Missouri Department of agriculture.
Last year the Missouri General Assembly approved legislation allowing farmers to receive a state tax credit for their investment in new generation cooperatives. But because of low income due to the poor farm economy, many farmers cannot take advantage of the credits.
The law allows the tax credits to be sold, but most farmers are being offered an amount below the maximum value. Missouri Farm Bureau is offering as a service to its farmer members to purchase the credits at 100% of their amount. As an example, farmers who invested in the northern Missouri ethanol plants currently under construction can receive almost immediate benefit from the action taken by Missouri Farm Bureau’s board of directors.
“Missouri Farm Bureau will make no money with the purchase of these credits and will absorb any associated costs, thus allowing farmers to take full advantage of the tax credits they receive for infesting in new generation cooperatives,” said Charles Kruse, president of Missouri Farm Bureau.
The farmer selling the credit must be a Farm Bureau member and must be the original investor. Credits will not be purchased that have previously been transferred. Missouri Farm Bureau will purchase the New Generation Cooperative Incentive Tax Credits on a first come, first serve basis subject to Missouri Farm Bureau’s capacity to use the credits.
Farmers interested in Missouri Farm Bureau purchasing the tax credits need to complete Form R supplied by the Missouri Agricultural and Small business Development Authority, whose phone number is 573-751-2129. The form can also be obtained by calling Farm Bureau at 573-893-1424. Once completed by the farmer, the form is to be mailed to Missouri Farm Bureau, P.O. box 658, Jefferson City, 65102.