Farmers and ranchers who give commodities and livestock to their favorite charities can receive tax benefits, Marilyn Parker, director of Planned Giving and Finance at Benefits Healthcare Foundation, tells the "Prairie Star".
“It is better, tax-wise, to give the actual commodity or livestock rather than to sell it, get the money for it and then write a check at the end of the year to a charity,” Parker said, noting “most producers can deduct the cost of raising the commodity or livestock as a business expense and forego receiving income from the sale.”
Parker cautions that anyone considering the donation of a commodity or livestock should make sure the charity can accept it. When charities are not able to accept such agricultural donations directly, it may be possible to transfer ownership before a sale is concluded (transfer on paper), with assistance from your grain or livestock buyer. That way, the charity can still benefit.