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Farm & Ranch

7 Commonly Missed Tax Deductions

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By Lisa Bryant

Spring brings budding trees, green grass and new baby animals for many Oklahoma farms and ranches. For some, it may be time when all the receipts get calculated and you make the annual tax season visit to your accountant.

Oklahoma’s farmers and ranchers often overlook deducting several items on their taxes. Read on for seven of the most commonly missed deductions.

Mileage and automobile expenses
You jump in the car to run to town to buy feed. It’s only 15 miles so you don’t record the trip on your mileage log. No big deal, right? Small trips may seem minor, but they add up over the year so make sure you keep a record. Also, do not forget parking and toll charges.

Mileage and automobile expenses can be calculated through either a standard or actual deduction. Check with your accountant to help determine the best method for you.

Home office deductions
Only a fraction of those who could claim a home office deduction actually claim the expense. If you use a room of your home as your farm’s office, you can deduct expenses. For example, if your office is 20 percent of the home’s entire square footage, you may claim 20 percent of mortgage interest or rent payments, insurance premiums and property taxes as tax-deductible expenses. You also can deduct the same percentage of your utility payments such as telephone services, electricity, gas and cleaning services.

Office furniture
Did you buy a new chair or desk for your office? Be sure to claim the deduction on your taxes.

Communications
Although you cannot claim your primary phone line, you can claim a separate business line. If you use your cell phone or internet for business use, you may deduct a percentage of the fees.

Office supplies
Did you make a trip to Staples to buy paper, but paid for it with your own cash? This is a deductible expense, so take care to pay out of your business account. It’s a good idea to have a separate business checking account and credit card for your farm.

Professional development
Did you attend an industry conference, or do you pay for an industry trade journal? You can deduct the cost paid as a business expense.

Health insurance
If you are not eligible for group coverage through a full-time job or your spouse’s employer, it is possible to deduct health insurance under certain conditions. Several stipulations apply, so it’s best to talk to your accountant beforehand.

Need help with your agribusiness venture? The Oklahoma Cooperative Extension Service and Oklahoma Small Business Development Center offers free one-on-one, confidential business advising.

For addtitional information, visit www.oksbdc.org.

Farm & Ranch

A Simple Way Out

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Stock tanks are a common sight across Oklahoma pastures. For livestock producers, they are one of the most practical ways to provide dependable water where natural sources may be limited. A well-placed tank can help cattle, horses and other livestock make better use of a pasture, especially during hot, dry months.

But livestock are not the only animals that find those tanks.

Birds, reptiles, small mammals and other wildlife may also come to a stock tank for a drink. In many cases, that added water source can be a benefit. The problem comes when an animal gets into the tank and cannot get back out.

Anyone who has ever found an animal dead in a stock tank knows it is an awful discovery. It does not really matter whether it is a bird, a squirrel, a raccoon, a snake or something larger. Finding it is bad enough. Having to get it out, dispose of it and then worry about the water your livestock are drinking makes it even worse.

It is one of those jobs no one wants to do, and it is also one that can often be prevented.

A slick-sided tank or trough can easily become a trap. Small animals that fall in may swim along the edge looking for a way out, but without something they can climb, they eventually tire and drown. That is a loss for wildlife, but it can also create water quality concerns for the livestock using the tank.

The good news is that the solution does not have to be complicated or expensive. A wildlife escape ramp can give trapped animals a way to climb out before they drown.

An escape ramp is exactly what it sounds like: a secure, sloped structure placed inside a tank or trough so animals can find it and climb to safety. According to the Oklahoma Department of Wildlife Conservation, ramps are more effective when they extend into the water, meet the inside wall of the tank and reach the bottom in case water levels drop. They should also be firmly attached so livestock cannot knock them loose.

Not every makeshift ramp works well. A floating log, a pile of rocks or a ramp that does not reach far enough into the tank may help some animals, but it can also be missed entirely. Animals often swim the perimeter of a tank looking for an exit, so a ramp that meets the wall gives them a better chance of finding their way out.

Traction matters, too. Materials such as coated metal grating, rough fiberglass, concrete, rock and mortar or durable plastic composites can help animals climb without sliding back into the water. ODWC notes that ramp slopes should be no steeper than 45 degrees so animals can climb out more easily.

One common design uses expanded metal grating secured to the rim of the tank and angled down into the water. The ramp should be sturdy enough to stay in place, rough enough to provide footing and long enough to remain useful as the water level changes. A rust-inhibiting paint or coating can also help extend the life of metal ramps.

For landowners, this is one of those small projects that can make a real difference. It does not require changing the whole watering system or giving up the benefits of a stock tank. It simply makes the tank safer for the wildlife that may use it.

It may also save you from an unpleasant chore later. There are plenty of hard jobs that come with owning livestock or managing land, but pulling a dead animal from a water tank is one most of us would gladly avoid. A simple escape ramp can help protect water quality, reduce unnecessary wildlife deaths and make a livestock watering system a little more wildlife-friendly.

In a state where agriculture and wildlife often share the same acres, small improvements matter. A stock tank can be a valuable resource for livestock and wildlife alike. Adding a way out helps make sure it stays that way.

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Farm & Ranch

Is Your Pasture Trying to Tell You Something?

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There are some things we see so often in Oklahoma that we almost stop noticing them. A dry pond. A dusty county road. A pasture grazed down so short it looks more like a yard than a place meant to grow forage.

Sometimes we drive by and think, “That place is sure eaten down.” Other times, if we are honest, we may look across our own fence and realize our pasture is starting to look a little tired, too.

Overgrazing is one of those issues that can sneak up on a person. It does not usually happen all at once. It happens a little at a time, often during dry spells, busy seasons or years when cattle prices make us want to keep just a few more head than the land is ready to carry. Before long, the signs begin to show. The grass gets shorter. Bare ground appears. Weeds move in. Rainwater runs off instead of soaking in. What once looked like a productive pasture starts looking thin, stressed and worn out.

The hard part is that by the time overgrazing is easy to see from the road, the problem has usually been building for a while.

One of the first things to understand is that overgrazing is not simply about how many animals are on a pasture. Stocking rate matters, of course. Too many head on too few acres will create problems in a hurry. But overgrazing is also about time. When plants are grazed too often without enough rest, they do not have time to recover.

Grass needs leaves to capture sunlight. That sunlight helps the plant rebuild energy and grow roots. When cattle, horses, sheep or goats repeatedly graze a plant short, the plant has to pull from its reserves to regrow. If that happens over and over again without recovery time, the root system weakens. A weak root system means less drought tolerance, less forage production and less ability to compete with weeds.

That is why a pasture can be overgrazed even if the stocking rate looks reasonable on paper. Continuous grazing, especially during hot or dry weather, can lead to areas that are used too heavily while other areas are barely touched. Livestock often return to the same tender regrowth again and again, weakening the best forage plants while leaving less desirable plants standing.

There are several signs that a pasture may be overgrazed, and one of the most obvious is simply height. If the forage is consistently grazed down very short across much of the pasture, it is time to pay attention. Short grass may look neat, but neat is not always healthy. A pasture is not supposed to look like a freshly mowed lawn.

Bare ground is another warning sign. Some bare ground is normal, especially in dry climates and around gates, water sources and feeding areas. But when open soil becomes more common across a pasture, the land is losing protection. Plant cover helps shield the soil from wind, rain and extreme temperatures. Without that cover, erosion increases and moisture is lost more quickly.

Weeds can also tell a story. Plants such as broomweed and sneezeweed often become more noticeable in pastures that have been heavily used. These plants are not always the problem themselves. Many times, they are a symptom of a pasture that has lost vigor and plant diversity. When desirable forage plants are weakened, less desirable or unpalatable plants have more room to move in.

Soil condition is another piece of the puzzle. Overgrazed pastures often have compacted soil, especially where animals congregate. Compaction makes it harder for water to soak in and harder for roots to grow. Instead of a rain being captured by the ground, much of it may run off. That means less moisture for the plants and more erosion in draws, slopes and low areas.

The effects are not limited to the pasture. Overgrazing can hit the pocketbook, too. When forage quality and quantity decline, livestock performance can suffer. Cattle may not gain as well. Body condition can slip. Producers may have to make up the difference with more hay, more feed, more fertilizer, more herbicide and more time. What begins as a pasture problem can quickly become an input problem.

Wildlife also pays a price. Good pasture and rangeland management is not just about livestock. Healthy grasslands provide cover, food and nesting habitat for quail, turkey, deer, songbirds, pollinators and many other species. When the plant community is grazed too hard for too long, habitat quality goes down. In a state where so much land is privately owned, the way we manage pastures has a direct impact on wildlife.

This is especially important in Oklahoma, where weather can change the rules quickly. A stocking rate that works in a wet spring may not work during a long, hot summer. A pasture that handled grazing well last year may need a break this year. Good management requires watching the land in front of us, not just relying on what has worked before.

The good news is that pastures can recover when given the chance. Rest is one of the most important tools a landowner has. That may mean rotating livestock, reducing numbers during dry periods, adjusting grazing timing or allowing certain areas to recover before animals return. It may also mean being willing to make hard decisions before the pasture is completely out of grass.

Recovery does not always happen overnight. A heavily overgrazed pasture may need time, better grazing management and, in some cases, help from weed control, reseeding, soil improvement or other practices. But the first step is recognizing what the pasture is telling us.

One simple way to begin is to walk the pasture instead of only looking at it from the pickup. Look at the plants. Is there enough leaf area left for regrowth? Are the best forage plants being grazed repeatedly? Are weeds increasing? Is there bare ground between plants? Are water areas, gates and shade spots becoming larger sacrifice areas? Are livestock having to work harder to fill up?

It also helps to compare different areas. Look inside a fence line or an area livestock cannot reach. The contrast can be eye-opening. Sometimes the best way to see what grazing pressure is doing is to look at what the land looks like without it.

No pasture is perfect, and every operation is different. A cow-calf producer, a hay grower, a horse owner and a landowner managing for wildlife may all have different goals. But the basic truth is the same: grass needs time to rest, roots need time to rebuild and soil needs cover to stay productive.

Overgrazing is not a sign that someone does not care about their land. Many good landowners have dealt with it, especially in tough weather years. But ignoring it does not make it better. The sooner it is noticed, the easier it is to correct.

For landowners who are unsure where to start, there is help available. Local OSU Extension offices, NRCS staff and wildlife biologists can offer guidance on grazing plans, stocking rates, forage health and wildlife habitat. Sometimes an outside set of eyes can help a person see both the problems and the possibilities.

A pasture is always communicating. It shows stress in the height of the grass, the amount of bare ground, the weeds that move in and the way water behaves when it rains. The question is whether we are willing to slow down long enough to listen.

Because in the end, a healthy pasture is not just about what it produces this month. It is about what it can keep producing next season, next year and for the next generation.

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Farm & Ranch

Acorn Toxicity

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Barry Whitworth, DVM

Area Food/Animal Quality and Health

Specialist for Eastern Oklahoma

With the prolonged drought, most pastures in Oklahoma are in poor condition. With the lack of available forage, animals may go in search of alternative foods. If oak trees are in the pastures, acorns may be a favorite meal for some livestock this fall. This may result in oak poisoning.

Oak (Quercus species) leaves, twigs, buds, and acorns may be toxic to some animals when consumed. Obviously, acorns can be a problem in the fall and green acorns can be more toxic than mature acorns. When acorns form only a small portion of the diet, there are usually no signs of problems. However, consumption of large quantities may result in toxicity. Tannins in the acorns cause the toxicity. The most common tissue damaged by the tannins are the digestive tract and kidneys. Cattle and sheep appear to be more susceptible to toxicity than goats. Other animals such as horses, rabbits, and chickens have succumbed to the toxicity of oak poisoning as well. Interestingly, some individual animals are more tolerable of the toxins and show no ill effects when consuming acorns.

Clinical signs of oak toxicity usually appear a few days after consumption of acorns. Initially, the animals are weak, listless, emaciated, and anorexic. This is followed by ventral edema (swelling of lower parts of the body such as legs, chest, ventral abdomen), urinating large amounts of urine, abdominal pain, and constipation. The animal may pass hard mucus covered fecal material which may change to black tarry or bloody feces as the disease progresses. If the animal is not treated, kidney failure is likely.

A tentative diagnosis of acorn poisoning may be based on clinical signs and access to acorns. Blood tests that indicate kidney disease is another clue to the condition. A necroscopy with examination of tissues for characteristic lesions of the disease is the standard to confirm a diagnosis of oak toxicity.

Treatment of oak toxicity starts with removing the animals from the area where the acorns are located. Those animals displaying signs of the disease should be given fluids to correct dehydration and electrolyte imbalances. Mineral oil and/or activated charcoal may be given to reduce toxin absorption. If animals survive the initial toxicity, they may recover, but it may take several weeks for kidney function to return to normal.

As always, prevention is better than treatment. Producers should be very careful allowing livestock to graze in areas where acorns are present. Livestock should be fed plenty of hay and feed this fall to avoid over consumption of acorns. For those producers who cannot avoid grazing areas with large numbers of oak trees, feeding a grain mixture with 10% to 20% of calcium hydroxide has been successful in preventing problems with acorn poisoning.

Two thousand twenty-two has not been the best year for livestock producers. The drought has produced poor pasture conditions as well as very little hay. On top of those problems, feed costs continue to increase. The last problem a producer needs is a large number of sick cows. For those that graze an area with a large number of oak trees, prevention may be worth the cost this year. At the very least keep a close watch of your animals this fall. Producers wanting more information about oak toxicity, should consult with their local veterinarian or visit with their Oklahoma State University Cooperative Extension County Agriculture Educator.

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