UNL BeefWatch · University of Nebraska-Lincoln

Tax Planning for Cow-Calf Operations: Don't Let the Snowball Roll Out of Control

October 14, 2025·12 min·1 clip

Tina Barrett explains why early tax preparer consultation is crucial for cow-calf producers facing profitability.

This episode of the UNL BeefWatch podcast features host Aaron Berger, a Nebraska Extension educator, and guest Tina Barrett, director of Nebraska Farm Business Inc. They discuss a specific article on tax planning for cow-calf operations titled "Don't Let the Snowball Roll Out of Control." The conversation is aimed at producers who have experienced recent profitability and are looking ahead to the 2025 tax year. Tina Barrett emphasizes the critical importance of contacting a tax preparer early in the year, not in December, to allow time for informed decision-making. She explains that a key principle is understanding your current tax bracket and projecting your income for the year to estimate potential tax liability. Barrett advises producers to consider pre-paying certain expenses, like feed or fertilizer, before year-end to manage taxable income. The discussion covers the strategic timing of selling calves, as delaying a sale into the next calendar year can shift income. Barrett mentions the value of reviewing depreciation schedules for equipment and making potential purchases to utilize Section 179 expensing or bonus depreciation. She notes that tax law changes occur frequently, making early consultations vital to navigate new rules. A memorable insight is Barrett's analogy of tax planning to a "snowball," where small, proactive steps prevent a large, uncontrollable financial burden later. She stresses that decisions should be based on operational cash flow needs, not solely on tax implications. Barrett points out that a profitable year is an opportune time to invest in necessary equipment or infrastructure upgrades for the operation. The tone is entirely educational and advisory, mirroring a university extension service's practical, client-focused workshop. The style is conversational but direct, with the host prompting the expert to outline clear, actionable steps. This episode is ideal for cow-calf producers, especially those who have had profitable years and seek strategies to manage tax obligations. Listeners with no cattle operation or those seeking entertainment-focused content would find this topic too niche and technical.

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