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Contract growing hogs offers tax benefits


The Equity
Depreciable assets are an advantage allowing producers to grow by using depreciation of asset as an offset to income.
Geri Wohltman, The Equity | Apr 15, 2021
When finalizing tax documents, you probably find yourself thinking about the tax dollars you could have invested back into your farm. One way in which you might make those dollars work for you is to contract grow pigs. The arrangement is typically such that you own the barn, and the entity owns the pigs, reducing your risk.
“Depreciable assets, such as hog facilities, are an advantage allowing producers to grow by using depreciation of the asset as an offset to income that would otherwise be taxed,” said Kent Bang, vice president of swine lending with Compeer Financial. ....

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