You are Worth Less Than You Think

Most farmers forget to reduce their net worth by deferred taxes.

Photo by Andhika Y. Wiguna on Unsplash

Most farmers have seen a rapid increase in net worth since the pandemic started in 2020. However, many farmers forget to reduce their net worth by the amount of deferred income taxes that may be owed if the farmer tried to convert that net worth into cash.

Today’s University of Illinois FarmDoc Daily released a report on the amount of deferred income tax liability for a typical Illinois farmer and the results are very interesting.

The report shows three graphs.