November 2010 Articles

Archives by Months

Pilgrim's Pride

Pilgrim’s Pride
Pilgrim’s Pride Corporation posted lower second quarter earnings due primarily to hefty restructuring changes. Pilgrim gave an optimistic outlook for the chicken industry in the second half of this year, forecasting overall industry production to rise 2.7 percent in 2010. Pilgrim’s Pride, which is now based in Greeley, Colorado says it is moving forward with plans to re-open three idled production plants by 2012. Pilgrim plans to increase its production about 5% per year over the next 2 years. It plans to re-open the Douglas, Georgia. plant in January of 2011, a second idled facility by mid-2011, and potentially another by spring 2012. Those plants under consideration are El Dorado, AR, Athens, Alabama, and Athens, Georgia., even though the possibility exists that Pilgrim may expand an existing plant rather than re-open a third plant if it is more cost effective. Source: Meatingplace.com

Health Care Bill Carries Changes in Tax Law For Farmers
The Health Care Bill carries several major changes in the U.S. Tax code. One of these changes will require farmers to issue Form 1099 to any business which was paid more than $600 in the prior tax year. This change is found in Section 9006 and greatly expands the use of Form 1099 which documents income other than wages or salaries. These payments would include interest, seed, chemicals, fertilizer, feed, parts, repairs, and other usually deductible items on the farm. This requirement will cause tax payers to collect names, addresses, and federal tax identification numbers for those many companies which provide goods or services to farmers. This new change doesn’t become effective until 2012. There is legislation already being considered by Congress to repeal Section 9006, but unless it is approved and signed into law, it will create substantial changes in the tax preparation process and will generate an estimated 17 billion additional dollars in tax revenue for the U.S. Treasury over the coming decade.
Source: Stu Ellis, University of Illinois, AgNetwork.com