Beginning March 15, 2011, the Beginning Farmer Program will be posting monthly a Nebraska Forecasted Marketing Year Average Price for corn, soybeans, and wheat that applicants may wish to use in their applications for the Beginning Farmer Tax Credit, when a share crop lease is used. The forecasted marketing year average price is being provided as a guideline for what a reasonable price expectation may be for the upcoming marketing year, as of the date of the application.
While applicants are encouraged to use the prices corresponding to the nearest date prior to the date their lease was signed, applicants may also elect to use another price, provided documentation and explanation is provided with the application. Note that these forecasted prices would not affect the lease arrangement in any way or actual marketing decisions and would only serve as a means to calculate the tax credit. Further, these forecasted prices, which are based on deferred CME Group futures prices adjusted for Nebraska average basis and monthly sales patterns, should not be construed as marketing advice or recommendations by the Beginning Farmer Tax Credit Program, the Beginning Farmer Board, or the Nebraska Department of Agriculture.
The price may be used for all three tax credit years in the application at the time of submission, but applicants may revise the price higher or lower in the second and third year of the program by providing documentation and explanation of the actual price received or contracted for the grain.
Instructions on using the price to complete the Cash Equivalent Statement may be found on page two of the Cash Equivalent Statement located on the Applications and Forms page.