HAPPY THANKSGIVING!

Click The Pumpkin

US FEEDYARDS SEE SHARP DECLINE IN CATTLE

(AP) — The number of cattle going into feedlots in Nebraska, Kansas and across the nation has taken a steep dive. The latest cattle-on-feed statistics come at a time of high input costs for fattening the beef and deep losses for the nation’s cattle-feeding industry. Kansas has 2.23 million head of cattle in its large feedyards as of Nov. 1. That number is down 8% from the same month a year ago. Cattlemen during October also placed 15% fewer cattle on feed, meaning the available slaughter supply will remain tight in the coming months. The Nebraska inventory of cattle on feed as of Nov. 1 was down 4% from last year and 5% from 2006. Since Labor Day, live cattle futures have dropped $20 a hundredweight because of concerns about domestic and export demand.

NEBRASKA NUMBER ONE IN COMMERCIAL MEAT

(Grand Island Independent) -- Nebraska was the nation's top commercial red meat producer during October as production totaled 666.3 million pounds, compared to 680.3 million pounds in October 2007. Nebraska was the nation's top cattle slaughter state with 614,900 head, but that's down from last October's 635,000 head. Nebraska's hog processing in October was 726,900 head, compared to October 2007's 724,300. According to Erin Daley, United States Meat Export Federation economist, while the world's economy is slowing down, both U.S. beef and pork export levels continued to exceed expectations through the first nine months of the year. According to Daley, U.S. pork exports built on the record set in August, increasing 61 percent in September over totals from a year ago.

FOLLOW THIS ADVICE TO HELP ELIMINATE SPAM

Here is some sound advice from Snopes.com. This may eliminate some spam from your mailbox if you follow it.

1) Any time you see an E-Mail that says forward this on to '10' of your friends, or sign this petition, or you'll get bad luck, good luck, or whatever, it almost always has an E-Mail tracker program attached that tracks the cookies and E-Mails of those folks you forward to.

The host sender is getting a copy each time it gets forwarded and then is able to get lists of 'active' E-Mails to use in SPAM E-Mails, or sell to other spammers.

2) Almost all E-Mails that ask you to add your name and forward on to others are similar to that mass letter years ago that asked people to send business cards to the little kid in Florida who wanted to break the Guinness Book of Records for the most cards. All it was, and all any of this type of E-Mail is, is a way to get names and 'cookie ' tracking information for telemarketers and spammers - - to validate active E-Mail accounts for their own profitable purposes.

You can do your friends and family members a GREAT favor (PLEASE) by sending this information to them. You will be providing a service to your friends, and will be rewarded by not getting thousands of spam E-Mails in the future!

If you have been sending out (FORWARDING) the above kinds of E-Mail, now you know why you get so much SPAM!

Do yourself a favor and STOP adding your name(s) to those types of listings regardless how inviting they might sound! You may think you are supporting a GREAT cause, but you are NOT in the long run. Instead, you will be getting tons of junk mail later! Plus, we are helping the spammers get rich! Let's don't make it easy for them!

Also: E-Mail petitions are NOT acceptable to Congress/Parliament or any other organization. To be acceptable, petitions must have a signed signature and full address of the person signing the petition.

IS YOUR VEHICLE OWNED BY YOUR CORPORATION?

If you are a corporation with a vehicle owned by the corporation, don't forget to add back to your W-2 the personal use of your corporate vehicle. The IRS has charts on how to calculate per use. Check out www.irs.gov for more information.

If you have any questions, please feel free to contact us.

Larry Kopsa CPA

TOP 10 FARMER TAX BLUNDERS

National Sorghum Producers Sorghum Grower magazine published an article I wrote called, Top 10 Farmer Tax Blunders...and how to avoid them! Read the article to avoid making these blunders. Find it in the Fall 2008 Hybrids Issue, or click on this link to check it out: Tax Blunders. Scroll down to pages 18 and 19.

LATE HARVEST - LATEST SINCE 1992

(Nebraska Ag Connection) -- For the week ending Sunday, wet weather once again slowed harvest progress, according to USDA. Corn and sorghum harvests remained over two and a half weeks behind average with 2008 being the latest harvest since 1992. Corn harvested was 67% complete, well behind last year's 96%. Sorghum harvest was 61% complete, behind last year's 96%. Winter wheat conditions rated 66% good and 15% excellent, well above last year's rating. This is the best wheat condition rating in ten years.

JUST HOW BAD IS THE ECONOMY? MAYBE YOU CAN'T BELIEVE ALL YOU HEAR

All we seem to hear is bad economic news. If you read the "real" economic news, the economy is not great, but certainly not as bad as you would think. The "talking heads" on the tube would make you think that the big depression is coming back. As the columnist George Will recently said, "an airplane that lands safely does not make news." Did you know that in October the economy rose by about 3%? That is off from past growth, but is still positive.

Here is an article that I thought might shed a little light on the subject.

(Star Tribune, Minneapolis) -- Suppose that everything you know is wrong.

· Consider the commonly held belief that corporate America is headed into a recession, tapped out for cash. Not so. Cash compared with total corporate debt is near a 50-year high.

· Certainly consumer debt appears unmanageable, with late payments nearing record levels on credit cards and real estate, right? Not true. The percentage of home loans 30 days or more past due, while rising, is nowhere near record levels.

· You say troubled home and auto loans are dragging down the economy as never before? Wrong again. While together such loans lopped 1.5 points off U.S. economic growth in recent quarters, it has been worse. In the final three months of last year, housing and auto pared more than 2 points from the chief barometer of economic progress.

“Most of that, I’ve got to believe, is behind us,” said Jim Paulsen, chief investment strategist at Wells Capital Management. Paulsen argues that the economy has more going for it than popularly believed. Paradoxically, the president, Congress and Federal Reserve officials have stoked fears instead of calming them, in Paulsen’s view. “We’ve never had a fear crisis like this,” he said. “All of our monetary and fiscal tools are to restore economic fundamentals. When it comes to fear, our toolbox is empty.” In earlier economic crises, three of every four problems were fundamental roadblocks to economic growth, Paulsen said. “This one is three-quarters fear.”

FARMLAND VALUES CONTIUE TO INCREASE IN VALUE

(AP) -- The Federal Reserve says the value of cropland in the Plains region jumped 20% in the third quarter compared to the same time a year ago. The Federal Reserve Bank of Kansas City's report released Monday covers Colorado, Kansas, Nebraska, Oklahoma, Wyoming and parts of New Mexico and Missouri. It estimates how much land values have increased over a year, but the report doesn't include an estimated price per acre. The value of Nebraska farmland increased the most in the region. Non-irrigated land jumped 28%, irrigated land gained 26% and ranchland gained 17%.

CHRISTMAS CAKES

The Holidays are upon us...what a busy time of year! If you plan to do any baking in the midst of all the holiday chaos, you might enjoy the following link. Pick A Cake

I thought it was pretty cool. I forwarded it to my wife... I'm not sure if she will get the hint. All you have to do is click on a link and the recipe will come up.
Enjoy!

Larry Kopsa CPA

FARM CREDIT MARKET LIKELY TO ERODE IN 2008

(AP) — Farmers with good credit in the states included in the Federal Reserve Bank’s 10th District have generally still been able to borrow money, but that likely will become harder in the final three months of 2008. The Federal Reserve Bank of Kansas City surveyed banks in the district, which includes Nebraska. During the third quarter, loan demand remained strong and the amount of money available to lend remained slightly ahead of last year. About 20% of banks raised collateral requirements. In the fourth quarter, farm loan demand is expected to increase while banks further tighten their credit standards.

INVESTING IN TODAY'S CHALLENGING MARKET

The stock market has made headlines this year with record volatility, record drops, and even record gains. And while many investors are still sitting on the sidelines, you may already be looking for bargains amidst the wreckage. So, we're writing to alert you to a possible problem with acting now.

Are you considering buying mutual funds in a taxable account (as opposed to an IRA or 401K)? Then you should be aware that most funds distribute capital gains this time of year. These distributions are taxable to you as long-term capital gains, even if you just bought the fund.

The average U.S diversified stock fund is down about 33% for the year. Funds in most other categories are down as well. But many of those funds sold assets for nice profits earlier this year. This means you may get socked with a nasty tax surprise!

There are generally two ways to avoid this bite. The first is to find funds without capital gains to distribute. The second is to wait until a fund actually pays out capital gain distributions. Make sure that you discuss with your broker to see if they expect distributions, and if so, when they will be paid.

Today's challenging market makes it even more important to invest with an eye on taxes.

GRAIN PROCESSORS WANT MORE CRP ACRES IN PRODUCTION

(Brownfield Network) -- The nation’s grain buyers and processors want more CRP acres returned to production. Randy Gordon of the National Grain and Feed Association says the need for grain-based products continues to grow, both in the U.S. and around the world. But he explains that most of the growth in acreage has been outside of the U.S. in the past eight years. “(The U.S. has) only increased our acreage base by about a million acres since 2008, whereas in South America they’ve increased theirs by over 58 million acres,” Gordon says. Gordon says the Grain and Feed Association will ask the new Obama administration to allow farmers to pull CRP acres back into production without paying a hefty penalty, and that there are a number of acres in CRP that can be farmed in an environmentally sustainable way.

CORN HARVEST CALLED 2ND HIGHEST ON RECORD

(AP) — The Nebraska corn crop is expected to be the second-highest on record at 1.38 billion bushels. The latest USDA estimate says Nebraska's corn crop will come in 7% under last year's record harvest of 1.47 billion bushels. Nebraska's soybean crop will come in at an estimated 14% higher than last year. Sorghum production was forecast to be the third-highest on record -- 19% below a year ago. Nebraska production of sugar beets was down 20% from last year, mostly because fewer acres were planted for harvest. Potato production was forecast at 4% less than a year ago.

AG LAND PRICES MAY BE WILTING

(Omaha World-Herald) -- After several years of double-digit growth, agricultural land values might be on the decline. While prices for cropland remain high, some properties are fetching 10 to 20% less than they would have a few months ago, agricultural real estate agents said. Researchers at the University of Nebraska-Lincoln and Iowa State University say they don't yet have data to show a decline, but anecdotal evidence suggests the red-hot markets of recent years may be cooling. State Sen. Kent Rogert of Tekamah, who sells agricultural real estate, seed and other ag services, said land prices in northeast Nebraska -- which had experienced a "land boom'' -- have dropped as much as 20% in three months. Chris Langemeier of Schuyler, another state senator who sells agricultural real estate, said he has not seen a downturn. At a land auction Friday in Leigh, a 40-acre parcel of dryland farm ground sold for about $2,800 an acre, he said. Researchers and real estate agents said the next several months will reveal more about future land values.

CALL TO ACTION

A NEW ADMINISTRATION….NOW WHAT?

As we have heard, “change is coming.” We are concerned that one change that is coming is higher taxes! Given the projected increases in the federal income tax, capital gains, and qualified dividend rates, you may want to take action before December 31st to keep more of your money in your pocket. To determine if you'll be affected, we have prepared the enclosed checklist for you. Please click on this link to review the checklist: Call to Action Checklist.

If you feel that you might be impacted by any or all of these items, contact us! If you already have a pretax appointment scheduled with us, we will be discussing these items at that time.

We are watching the activity in Washington D.C. very closely so that we can best serve you, therefore we will keep you posted. Let us know if you have any questions.

It is a pleasure serving you!

Larry Kopsa CPA

RECALLING OUR FOUNDER'S WISDOM

“A people ... who are possessed of the spirit of commerce, who see and who will pursue their advantages may achieve almost anything.” - George Washington


“Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise.”- Thomas Jefferson

“To take from one because it is thought that his own industry and that of his father’s has acquired too much – in order to spare to others, who, or whose fathers, have not exercised equal industry and skill – is to violate arbitrarily the first principle of association, the guarantee to everyone of a free exercise of his industry and the fruits acquired by it.”- Thomas Jefferson

“A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor and bread it has earned -- this is the sum of good government.” - Thomas Jefferson

"The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government -- lest it come to dominate our lives and interests."- Patrick Henry

“There are more instances of the abridgement of the freedom of the people by the gradual and silent encroachment of those in power, than by violent and sudden usurpation.”- James Madison

“[T]he government of the United States is a definite government, confined to specified objects. … Charity is no part of the legislative duty of the government.”- James Madison


“When the people find that they can vote themselves money, that will herald the end of the republic.”- Benjamin Franklin


“It does not take a majority to prevail ... but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men.” - Samuel Adams

QUESTION ON ENERGY CREDITS

Larry,

I hope you can help me with a personal question. I understand that there are some energy credits that I can get by purchasing energy efficient insulation, etc. I’ve been trying to find what actually qualifies and what doesn’t. Could you help?

Charles

Charles,
There are some energy credits out there that could reduce your income tax bill by $500. Not a big deal, but if at the same time you are making some purchases; you just as well get the credit. One thing you have to remember is that the credits are not in effect until purchasing after January 1, 2009 and ending December 31, 2009. You might want to wait until after the first of the year.There is a web site out there that gives you some good information. You might check out www.ase.org\taxcredits.

Here’s a summary:

· Purchasing insulation, exterior doors or roofs. There’s 10% cost of the product but not the installation of up to $500. This includes seals to limit air infiltrations such as caulking and weather stripping materials as well as storm doors. Roofs must meet certain standards before they qualify.
· Central air conditioner, heat pump, water heater or corn stove. You can receive a credit of up to $300 towards the full purchase price of any qualifying items including the installation cost.
· Exterior windows that meet certain standards, including sky lights and storm windows. There is 10% of the total cost up to $200.
· Furnace and Boiler. Can give you a credit up to $150 towards the full purchase price or $50 for efficient air circulating furnace fans including installation cost for both furnace and fan.Windows, doors, insulation and roof must be expected to last at least five years. A two year warranty is sufficient to demonstrate this.

I hope this is helpful.

Larry Kopsa CPA