Taxes

• Tax Services
  With lines of credit available to help you lock-in prices, pre-pay expenses for tax management purposes, and get cash discounts, AgGeorgia can help keep your operation running through seasonal cash flow swings with fixed rate, variable rate, revolving and non-revolving options. And just like with our land loans, we pay you back a portion of the interest accrued on your operating line of credit through our Patronage Refund Program, further reducing your cost of borrowing.
• Tax Deductions
  Patronage refunds can help Farm Credit reduce its tax expense and maintain a strong capital position. This helps the entire membership because an Association with a strong capital position is better able to offer competitive interest rates, ensure a constant supply of credit and provide for the retirement of member equity held in the form of allocated surplus. Unlike other corporations where profits are taxed twice, when earned by the corporation and when distributed to owners as dividends, a cooperative's profits are taxed only once when they are distributed as a patronage refund. Farm Credit is allowed a tax deduction for the amount of net income that it distributes in the form of a qualified patronage refund. Therefore, to effectively manage the Association's tax expense and maintain a strong capital position, the board of directors may elect to distribute taxable earnings to members as a qualified patronage refund. A qualified patronage refund is one in which at least 20 percent is paid in cash and the remainder in stock or qualified allocated surplus.

Planning

• Financial Planning
• Retirement Planning
  Ensure that retirement benefits are appropriate and not excessive. Fully understand key assumptions used to calculate compensation and pension plan obligations and the Association’s sensitivity of exposure to such assumptions.