Thursday, July 31, 2008

OBAMA ECONOMIC PLAN WOULD INCREASE TAX ON BUSINESS AND GIVE $1,000 TO FAMILIES

I have said time and again, "If you rob Peter to pay Paul you will always have the support of Paul." Is this a sound economic policy or an effort to buy votes? When you think about who actually "owns" the oil companies, isn't it the stockholders? Aren't the stockholders Americans with their pension plans, investments and mutual funds? Talk about shooting yourself in the foot.

Larry Kopsa

(Politico.com) -- Sen. Barack Obama (D-Ill.) on Friday announced an “Emergency Economic Plan” that would give families a stimulus check of $1,000 each, funded in part by what his presidential campaign calls “windfall profits from Big Oil.” The first part of Obama’s plan is an emergency energy rebate ($500 to individual workers, $1,000 to families) as soon as this fall. Separately, Obama’s plan includes a $50 billion stimulus package that his campaign claims would save more than 1 million jobs. Half of the money would go to state governments, which are facing big budget shortfalls, and half would be used for national infrastructure, including replenishing the Highway Trust Fund, rebuilding roads and bridges, and repairing schools.

John McCain reacted: "Unlike Sen. Obama, I do not believe that raising taxes is the answer to our economic problems. There is no surer way to force jobs overseas than to raise taxes on businesses.”

Wednesday, July 30, 2008

IS THIS STIMULUS WORTH ALL THE HASSLE?

As I have discussed before, there has been a lot of confusion as to whether or not the advance rebate checks would affect the amount of refund or tax due with the 2008 1040. The IRS website has had conflicting info on this. If you check the IRS's draft release of the 2008 1040 form, you can plainly see on Line 71 that there is a place for the "Recovery rebate credit" which should be a positive number for those people who did not receive the full amounts as checks during the year, and either a zero or negative amount for those who received checks.

This will obviously end up affecting the amount of refund or tax due. As I have been saying, this is exactly the same mechanism as we had for the similar advance rebate payments that we had to deal with a few years ago. People were claiming that the 2008 rebate checks were free money and would not affect the bottom lines on the 1040s. Apparently this is not correct.

PROBLEMS RECEIVING YOUR STIMULUS CHECK

Hi Larry,
I found your blog thru a google search on "stimulus check problems". After waiting now for a long time the IRS finally has an online tool to check the status.

Surprisingly I had to find out that I was not "eligible" because my SSN or ITN do not match their records. I have a SSN and my wife has an ITN.

The interesting thing is that I filed my TAX return electronically with that same info and had no issues in getting my refund in March.What am I missing? Have you heard about this issue as well, and is there any possible solution?

Thanks for your help.
Richard

Richard, I am sorry that you are having problems with the IRS and your stimulus check. I think you have two choices. One choice is you can continue to contact the IRS to try to resolve the problem. We understand that the IRS is receiving numerous calls and have reallocated staff to the stimulus questions. Although I have not personally been involved with any contact with the IRS regarding stimulus questions, I am sure this would be a long frustrating process.

The other choice that you have is to simply wait until you file your 2008 return and increase your refund or decrease the amount of tax due when you file the 2008 return. As you may know, the stimulus refund is really a reduction of your 2008 tax, not a reduction of your 2007 tax. They are just doing this early to supposedly heat up the economy. I am not sure if it worked, but that was the thought.

On many returns that were extended, they will not receive the stimulus refund until they file the 2008 return.If it were me, rather than hassle with the IRS, I would probably just wait until you file your 2008 return and make sure your tax preparer understands that you did not receive your stimulus check and reports it correctly on your 2008 return.Sorry I could not be of more help. If you have any questions, please contact me.

Larry Kopsa CPA

Hi Larry,
Yea your feedback helps. I think I stimulate the economy then next year :) even though I had planned with the money this year.It just shows the state the IRS is in.

Thanks again!
Richard

Tuesday, July 29, 2008

FEEDLOT NUMBERS DOWN

(Bloomberg) -- Feedlot operators reduced purchases of young cattle by 8.7% in June from a year earlier as corn prices soared to a record -- 13% below the five-year average for the month, the U.S. Department of Agriculture said. "Cattle feeders have been losing money," said Ron Plain, an economist at the University of Missouri. Feedlots "don't want them to eat any more high-dollar corn so we keep them on grass longer." Corn, the main ingredient in cattle feed, is up 82% from a year ago, reaching a record $7.99 a bushel on June 27. Cattle feeders lost $32.41 per animal sold a year earlier.

Monday, July 28, 2008

2008 CELEBRITY TAX DEDUCTIONS

Edward A. Lyon is a nationally recognized author, speaker, and consultant. He has appeared on over 200 radio and television broadcasts, including CNN, Fox News, CNBC, MSNBC, and Roseanne Barr's short-lived talk show, which dubbed him "the funniest tax guy in America."

CINCINNATI, Ohio - March 14, 2008 - Edward A. Lyon announces release of his 2008 Celebrity Deductions list.

Supreme Court Justice Oliver Wendell Holmes called taxes "the price we pay for civilization." But he never said we have to pay retail! As April 15 approaches, let's take a look at what some of our favorite bold-face names might deduct this year:

Lindsay Lohan's Drug Rehab. Competition for the celebrity drug rehab category is always fierce. Actress/trainwreck Lohan takes this year's top spot (beating out Britney Spears, Eddie Van Halen, and Amy Winehouse), with not one but two trips to rehab plus 84 minutes of "hard time" in the Lynwood jail. Bonus: Drug and alcohol rehab is the only deductible medical expense with a two-drink minimum!

Paris Hilton's Acting Lessons. Celebutante Paris Hilton revealed last year that she's hired a top acting coach to win better roles. Will that investment pay? Her first feature, "The Hottie and the Nottie," grossed just $25,000 in its opening weekend. We know Paris can deduct her lessons as a business expense. The real question is whether the rest of us can deduct our tickets as casualty/theft losses!

Kevin Federline's Divorce Lawyer. Why is divorce so expensive? Because it's worth it! Especially when your train-wreck ex sports a net worth estimated as high as $123 million! Most of K-Fed's legal fees will be a nondeductible personal expense. But he can still deduct legal fees for determining tax-deductible spousal support.

Al Gore's Nobel Peace Prize. Former Vice-President Gore is a true Renaissance man. He invented the Internet and global warning. He won an Oscar and a Nobel Peace Prize. He was even smart enough (and confident enough) to donate his cash to charity before he won, avoiding a pesky limit on deducting charitable gifts.

Harry Potter's Hogwarts Tuition. Harvard University runs $34,998 for 2008 tuition and fees. Plus $10,622 for room and board. That's probably more than Hogwarts costs - but without cool classes like Charms, Care of Magical Creatures, or Arithmancy (whatever that is!) Secondary school and college tuition are a nondeductible personal expense - but Harry can use a Coverdell Education Savings Account to earn tax-free income to pay for it.

Kristen's Train Fare. "Kristen" and her fellow "Emperor's Club" fashion models, pageant winners, and students earned tens of thousands servicing former New York Governor Elliot Spitzer. Kristen's an independent contractor (not an employee), so she deducts "business" expenses on Schedule C. These include the train fare she had to pay to visit Spitzer because, as everyone knows, there are no prostitutes in Washington D.C.

Saturday, July 26, 2008

QUESTION ON SOCIAL SECURITY BENEFITS

Larry, I saw an article that said a couple can increase their Social Security benefits if the wife applies individually at age 62 and the husband at age 66. Is this correct? Lorinda

Lorinda, It really depends. Some couples benefit by having the higher-earning spouse delay application of benefits. This is due to the interplay between the reduction of benefits for early retirement and the full benefits available to a surviving spouse upon the death of a higher-earning spouse. But several other factors should be considered, including the respective ages of the spouses and the amounts involved.

We do have programs available to determine if this is in your best interest. Let us know if you are interested in us running a calculation for you and we will tell you what we need. We are always up front about costs. The cost to do this calculation and then meet with you in person or via phone and computer is $275.00.

Remember, everyone's situation is different. If you would like to research this yourself you might check out the Social Security website, http://www.ssa.gov/.

Larry Kopsa CPA

Friday, July 25, 2008

QUESTION ON BEGINNING FARMER TAX CREDIT

Larry, I'm renting my ground to a young farmer that's just starting out. Are there any tax incentives available to me that I don't know about? Bill

Bill, There is a credit available on Nebraska Income Tax returns that may apply to your situation. The following are the essential facts that must be present:

1. The farmer that is renting the land and/or equipment must be a qualified beginning farmer. In order to qualify as a beginning farmer, they must meet the following characteristics:

  • Must be a Nebraska resident
  • Have a net worth of less than $200,000
  • Have farming experience/education
  • Plan to seek livelihood in agriculture
  • Provide the majority of the day-to-day physical labor and management
  • Not closely related to the owner
  • Farmed for less than 10 of the last 15 years

2. The owner must be a qualified owner. In order to be considered a qualified owner, you must meet the following characteristics:

  • Must be a Nebraska resident
  • 50% of your gross annual income, for income tax purposes, must be from farming for more than 5 of the last 15 years
  • You must have provided the majority of the day-to-day physical labor and management for more than 5 of the last 15 years
  • You must be eligible to receive a state income tax credit
  • You must not be closely related to the beginning farmer
  • You must rent the property to this beginning farmer for a minimum of 3 years. This means you must have a 3 year lease.

3. The credit is actually a credit for the owner. However, both the owner and the beginning farmer must submit an application to Nebraska. The applications are sent in together and then the application must be approved by the Beginning Farmer Tax Credit Act board.

4. If you do qualify, you will then get a credit for each of the 3 years of 10% of the cash rent received, or 15% of cash equivalent of crop share rent.

As you can see, there are several characteristics that we need to ensure you meet in order to qualify for this credit. On your side of the qualifications, the one we need to ensure works is the 50% of your gross annual income is from farming more than 5 out of the last 15 years. As we look at this, we actually have to look at gross rent income received, your wife’s wages, and gross seed income, compared to farm income. This could create an issue. In addition, we would need to find out more information about the young farmer you are renting to.

Once you have a chance to review this information, please contact me to let me know your thoughts on the qualifications to see if we need to continue going further in gathering information. If you have any questions or concerns, please feel free to contact me.

It is a pleasure serving you.

Larry Kopsa CPA

Thursday, July 24, 2008

CONDITIONAL GIFTS

Larry, I'm planning to purchase an engagement ring for my fiancee. Will it be subject to any tax? Robert

Robert, Congratulations on your engagement! To answer your question, you can give gifts worth up to $12,000 to any individual annually - and not owe gift tax. And, if you marry in the year that you give the ring, it's also OK, because spouses' gifts to each other are tax free, and marital status at year-end governs for the full year for tax purposes.

If the ring is worth more that $12,000 and you don't marry in the year that you give it, state law determines whether it is a gift. In some states, an engagement ring is considered a conditional gift that must be returned if no wedding takes place, so no federal gift tax applies. But in a state where the gift of the ring is considered a completed gift that the recipient is entitled to keep even if there is no marriage, gift tax applies.

Good luck with your future plans!

Larry Kopsa CPA

Wednesday, July 23, 2008

KOPSA OTTE HIRES OUTSTANDING GRADUATE

Kopsa Otte is lucky to have such a great staff, and we are happy to announce our newest addition. Megan Munsell has recently been hired as an accountant. She graduated Summa Cum Laude in Accounting from York College and also received the Dean's Award. Click here to read about Megan: Megan Munsell receives Dean's Award

Monday, July 21, 2008

GOVERNMENT TRUE-ISMS

Suppose you were an idiot. And suppose you were a member of Congress....But then I repeat myself. -Mark Twain

I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle. -Winston Churchill

A government which robs Peter to pay Paul can always depend on the support of Paul. -.George Bernard Shaw
A liberal is someone who feels a great debt to his fellow man ..which debt he proposes to pay off with your money. -G. Gordon Liddy

Democracy must be something more than two wolves and a sheep voting on what to have for dinner. -James Bovard, Civil Libertarian (1994)

Foreign aid might be defined as a transfer of money from poor people in rich countries to rich people in poor countries. -Douglas Casey, Classmate of Bill Clinton at Georgetown University
Giving money and power to government is like giving whiskey and car keys to teenage boys. -P.J. O'Rourke, Civil Libertarian


Government is the great fiction, through which everybody endeavors to live at the expense of everybody else. -Frederic Bastiat, French Economist (1801-1850)

I don't make jokes. I just watch the government and report the facts. -Will Rogers


If you think health care is expensive now, wait until you see what it costs when it's free! -P.J. O'Rourke

In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other. -Voltaire (1764)


Just because you do not take an interest in politics doesn't mean politics won't take an interest in you! -Pericles (430 B.C.)


No man's life, liberty, or property is safe while the legislature is in session. -Mark Twain (1866)


Talk is cheap...except when Congress does it. -Unknown

The government is like a baby's alimentary canal, with a happy appetite at one end and no responsibility at the other. -Ronald Reagan

The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. -Winston Churchill

The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin. -Mark Twain


The ultimate result of shielding men from the effects of folly is to fill the world with fools.-Herbert Spencer, English Philosopher (1820-1903)

What this country needs are more unemployed politicians. -Edward Langley, Artist (1928 - 1995)

A government big enough to give you everything you want, is strong enough to take everything you have. -Thomas Jefferson

Friday, July 18, 2008

DIGITAL CLOCK

This is an interesting link. However, it does make me think that somebody has too much time on their hands. Digital Clock

Thursday, July 17, 2008

QUESTION ABOUT THE 2008 ELECTION

Larry, I went on this online community thing and everyone was talking about you... what is going on? There's even a video about it on News3Online. Is this true? Ed from St. Louis


Ed, I think this is what you are referring to. Larry


'>Election 2008

DEPOSITORS MAKE RUN ON BANK THAT FAILED

We always advise our clients to have FDIC coverage up to $100,000. With the controls that have been in place since the 1930's, bank failures were nonexistent. But, never say never. If you think it can't happen, read this: Depositors Make Run On Bank That Failed

Wednesday, July 16, 2008

LIQUOR LIPS

If you were around in 1919 (just before prohibition started) and came upon the following poster...

I mean seriously, Would you quit drinking?

Monday, July 14, 2008

GOV. HEINEMAN MAKES EFFORT TO BOOST AG TRADE

(Governor's release & G.I. Independent) -- Gov. Dave Heineman on Monday announced several agriculture-related activities designed to expand trade opportunities for Nebraska products in three continents. During the next few months, the state’s agriculture industry will be highlighted through policy discussions and promotional events in Hong Kong, Guatemala and Europe. In October, Gov. Heineman will be the first U.S. governor to speak before the European Union (EU) Parliament's Agriculture and Rural Development Committee this fall. The speaking engagement came about after a recent visit by EU Agriculture Commissioner Neil Parish in May. Parish extended Heineman the invitation after learning about beef production, genetically modified crops and biofuels production in Nebraska. Nebraska also is planning host two trade officials from Cuba during a visit planned for the end of the month. And the state will be part of a major beef promotion event beginning next week in Hong Kong, where Nebraska beef will be featured during a two weeks in eight Jusco stores. Jusco is the largest food retail outlet in Hong Kong. Nebraska will also participate in an international food expo held in Guatemala in September. Gov. Heineman said, “Approving the Central America Free Trade Agreement in 2006 opened the door for lower tariffs, which made Nebraska beef much more competitive with domestic beef and other imports.” In addition to exploring trade opportunities this fall, Nebraska will host a delegation of Guatemalan government leaders visiting the U.S. in August. Biotechnology opportunities are among the topics slated for discussion.

Sunday, July 13, 2008

NEW ETHANOL PLANT IN OMAHA USING FOOD WASTE BYPRODUCTS

(AP) — A Minnesota-based company says it will be building and operating a 1.5 million-gallon ethanol plant in Omaha that will use food waste byproducts. The company is Diversified Ethanol of Burnsville, Minn., a wholly owned subsidiary of Greenbelt Resources Corp., which also is based in Burnsville. Diversified Ethanol says it has gotten an order to build the plant and will own 20% of it. The company says the ethanol will be produced from the waste byproducts of tortillas, bread, and cereal production.

ETHANOL PLANTS FOCUS ON RISK MANAGEMENT

(Aurora News Register) -- As corn prices soar near the $8 mark, owners and managers at Nebraska’s 21 ethanol plants are focusing on risk management techniques with their ultimate success hinging on the ability to anticipate the cyclical nature of the commodities business. Most of the companies already up and running in the state “are on pretty solid ground” in that respect, according to Todd Sneller, administrator of the Nebraska Ethanol Board. These days, however, there is little room for error. “While we hear a lot about $7 and $8 corn, I suspect most Nebraska plants are not operating with costs at that level,” Sneller said. “Many of the managers I’ve talked to have been through these cycles before and have been managing risk and building up capital reserves. Because of that foresight they will be better able to weather these challenging economic times.” Debt is another significant variable in the health of individual plants, Sneller noted. Many of Nebraska’s plants have been in operation for a period of time, allowing them to amortize much of that debt.

Saturday, July 12, 2008

RISING GAS PRICES

If you drive a car or truck, you've probably noticed that gas is getting pricey! Even out here in the Midwest I have seen gas pumps at $4 per gallon. Some experts have predicted prices will continue climbing to $5 per gallon or more. With gas prices so high, it's important to choose the right way to deduct car and truck expenses. I want to make sure you understand the issue.You have two ways to calculate deductible car and truck expenses:

1. The "actual expense" method lets you deduct the "business use percentage" of all your actual expenses. These include depreciation and interest (if you buy) or lease payments (if you lease), insurance, gas, maintenance and repairs, parking, and tolls.

2. The "mileage allowance" method lets you deduct 58.5 cents/mile.

The problem with the allowance method is that the 58.5 cents is same for every car on the road whether you drive a hybrid or a Hummer. In actuality the method your are using may be far less than your actual costs! The American Automobile Association's recent survey, "Your Driving Costs (2008)," reports actual costs ranging as high as 91 cents/mile for an SUV driven 10,000 miles/year. These figures are based on gas at $2.941/gallon!

If you deduct automobile expenses or are reimbursed from your employer you may want determine which is the best method for you. If you'd like us to show you how to make the most out of your car and truck expenses, please contact Amanda at our office ahansen@kopsaotte.com and we will tell you how we can help.

Friday, July 11, 2008

KOPSA OTTE IS CPR CERTIFIED

Not only are we CPA certified, now we are also CPR certified. Kopsa Otte provided free CPR Training to our staff on two separate evenings last week. It was held in our conference room, and was led by an instructor from the local hospital.

We believe that providing this opportunity will help strengthen our value to our clients, ourselves, and our co-workers.

Thursday, July 10, 2008

TAX DEDUCTIONS FOR BUSINESS TRIPS

Greetings. I am planning on taking a business trip/vacation. Can I get a tax deduction? R.M.

R.M., I hope you have a great trip. Travel costs are generally deductible for trips you take on behalf of your trade or business. Here are the general rules:

You're "traveling" when you're away from home overnight or long enough to need sleep.

  • "Business day" costs include 50% of meals and entertainment plus 100% of lodging, local transportation, incidentals, and your first load of laundry and dry cleaning back home.
  • If your spouse is a bona fide business partner or employee, traveling for a bona fide business purpose, you can deduct their costs too.

You'll need receipts for all lodging and expenses over $75. Transportation costs include planes, trains, and automobiles. The IRS prescribes specific formulas for calculating deductible business transportation expenses. These rules generally turn on how much of your time away from home you actually spend on business, and whether you travel outside the United States.

These rules generally limit your business deductions to bona fide business trips -- not vacations disguised as business trips. But you can still take generous business deductions for trips including some personal time. We recommend you keep a log or diary of your business time so you can substantiate whatever deduction you claim.

Want to write off weekends? You can treat them as business days if they fall between business appointments or if you stay over (before or after your business time) to qualify for airline "Saturday Stay" discounts. (Low airfares once meant the end of those Saturday requirements -- but $140/barrel oil, along with new fees for checked bags and peanuts, look likely to bring them back.)

Travel deductions aren't especially complicated -- if I had more information about your plans I could give you a more precise answer. Let me know if I can be of more assistance.

Larry Kopsa CPA

Monday, July 7, 2008

WATCH OUT FOR THIS SCAM

We may all think this scam is far fetched, but something similar actually did happen to an elderly client of mine. She wanted to know, if she received a million dollars, would the money be taxable? My immediate thought was that she inherited some money, but I eventually came to find out that she was actually being scammed by someone in Africa.

Many Americans have received an e-mail or letter from Nigeria, claiming that the recipient can receive huge funds from an "over-invoiced" government contract or a wealthy individual who died without a will. In actuality, these are advance fee swindles where the victim must pay phony charges for the nonexistent money.

Thomas Katona, the longtime treasurer of Alcona County, Mich., was charged in January with nine counts of embezzlement by a public official after allegedly wiring more than $1.2 million in county funds to Nigerian con artist in August and September. It represented more tan a quarter of the county's entire annual budget.

-Joseph T. Wells, CPA, CFE, the Association of Certified Fraud Examiners

Thursday, July 3, 2008

FARM ACT TAX PROVISIONS

I think we all know that the Farm Act has now been signed into law. What you may not know is there are some tax provisions associated with the Farm Act. Here are a few of the items I thought you might be interested in:

CONSERVATION RESERVE PROGRAM PAYMENTS

There has been controversy over the last several years of whether or not a farmer needed to pay social security tax on CRP payments. This is bouncing around between the IRS and the courts, and before the act, the IRS had ruled successfully that you had to pay Social Security tax on CRP payments, even if you were not a farmer or were retired. Now, this is all changed. The act provides that CRP payments received by retired or disabled individuals, who are getting Social Security, retirement, or disability payments are not subject to the self-employment tax income for self-employment tax purposes. This is effective for payments after 2007.

FARM LOSS CARRYBACKS

The new law tightens up farm losses if you are receiving large amounts of program payments. The law states that for any year a taxpayer other than a C corporation receives subsidies through CCC loans, countercyclical payments, or payments in lieu of that, the losses are limited to the greater of $300,000 or the total income from the farm for the prior five years. Any additional loss is carried forward to the next year.

SELF EMPLOYMENT TAX

One really good change to the law is that it modified the optional methods so that electing taxpayers will be eligible to secure four credits of social security benefit coverage for each tax year by increasing the indexing of the dollar thresholds. In the past, a farmer was only able to receive one quarter of coverage. Therefore, farmers with losses would eventually not be eligible for disability.

There are other tax provisions to the act. I will list them, and if you are interested in them please let me know, and I would be glad to get you more information. I do not include the detail in the blog due to fact that this would only affect a minority of farmers.


  • Qualified conservation donations

  • Endangered species recovery expense deduction

  • Depreciation of race horses
  • Exchange of mutual ditch, reservoir, or irrigation company stock

  • Timber investments in REIP'S
  • CCC loan transaction reporting

  • Corporate estimate tax of farmers with over $1 billion in assets

  • Kansas Disaster Area Relief

  • Credit for production of cellulose biofuel

  • Alcohol credit

Again, if you have any questions on these, please feel free to contact me.

Larry Kopsa CPA

Wednesday, July 2, 2008

YOU ARE BEING SUED - NOW WHAT?

The United States has 5% of the population but 70% of the attorneys that file 90% of the lawsuits. 350,000 lawsuits are filed weekly in the U.S.

It is an owners nightmare to be sued. I can speak from experience. It has happened to me two times in the last thirty years. All the suites were unfounded. We won in each case, but it still cost us time and legal fees, plus the stress of the process. It might be a customer, an employee, or the government, but whatever the source, it is going to cost you time and money.

I am not an attorney and in no way am I giving legal advice, but from a business perspective, here are some steps you can take.
  • Don't panic. Deal with it.
  • Don't ignore the lawsuit. No matter how frivolous you think the lawsuit is, or how much you want it to "just go away," if you don't respond you lose by default.
  • Contact an attorney right away. Lawsuits are a serious matter and you are at risk. Tell the attorney the whole truth. Don't leave anything out!
  • Contact your insurance carrier.
  • Begin organizing your documents. Talk to your attorney about the information you have. He may want you to deliver the documents to his or her office.
  • Ask your attorney about fees. Many times it is better to negotiate a settlement on the lawsuit, which may be less costly when you consider the attorney fees to take the suit to trial and the value of your time.

Larry Kopsa CPA

Tuesday, July 1, 2008

10 THINGS YOU MAY NOT KNOW ABOUT YOUR PERSONAL FINANCES

I found a recent article in USA Today that I thought you might be interested in. Click on the following link to check it out: Personal Finances.

THOUGHT FOR THE DAY

OPEC sells oil for $136 a barrel.
OPEC nations buy U.S. grain at $7 a bushel.
Solution: Sell grain for $136 a bushel.
Can't afford it?
Tough!
Eat your oil!
Ought to go well with a nice thick grilled fillet of camel!!!