#123: Year-End Tax Planning and Financial Confidence on the Farm
“If cash is king, cash flow is queen.”
This episode of Farming on Purpose dives into one of the least glamorous—but most critical—parts of running a farm or ranch: year-end financials. I sat down with Tressie Mitzner, economist with Kansas Farm Management, to talk about how producers can set themselves up for smoother tax seasons, stronger books, and more confident decisions year-round.
Tressie’s story is one many producers can relate to—starting small, juggling family and work, and learning the business side the hard way. But through it all, she’s built a perspective that’s practical, encouraging, and full of hard-won wisdom.
From Hay Bales to Balance Sheets
Tressie grew up in northwest Kansas, in a family where haying season meant long days on a swather or a baler. After college, she and her husband Levi managed hog farms for Seaboard Foods before returning home to raise their kids closer to family and start building their own cow-calf operation.
They began modestly—purchasing cows on a handshake deal and renting grass from a family friend—slowly accumulating equipment and learning how to balance growth with sustainability. Eventually, Tressie’s work with extension programs led her to discover her knack for numbers. Helping farmers run scenarios and plan for profitability lit a spark that grew into her current role as an economist helping ag producers strengthen their businesses.
Getting a Handle on Year-End Bookwork
Tressie knows that most farmers don’t get into agriculture for the paperwork, but she’s passionate about helping them see the value of clean records.
She shared practical tips for heading into the new year with confidence:
Start early. Don’t wait until January—August or September is the time to project income and expenses and build a tax plan.
Double-check your 1099s and W-2s. Make sure names, addresses, and Social Security numbers are correct before year-end.
Review your profit and loss statement. A quick scan can catch misplaced income or expenses that might throw off your accountant later.
Reconcile carefully. If you write checks in December, make sure they’re recorded, even if they haven’t cleared the bank yet.
“It’s respectful to your accountant—and to your own business—to hand in clean books,” she said.
Balancing Assets, Income, and Strategy
Beyond bookkeeping, Tressie explained the importance of tracking capital assets correctly. The value of a tractor, a sprayer, or even a set of cows isn’t just what left your bank account—it’s tied to depreciation schedules and future tax implications.
She also discussed how to approach high-income and low-income years differently:
In low-income years, avoid deferring payments or prepaying expenses too early, and consider contributing to Social Security even if you show a loss.
In high-income years, use tools like farm income averaging, deferred grain contracts, or prepaying expenses—but avoid creating a “snowball effect” that leaves you short the following year.
And for anyone purchasing land or big equipment? Remember that the asset has to be in use before you can depreciate it.
Giving Yourself Grace—and a System
Record-keeping isn’t glamorous, but it’s essential. Tressie shared how she and Levi learned to make it part of their rhythm. Some nights meant sitting down after the kids were asleep, other times it meant carving out a few hours each month to enter transactions and review reports.
Her advice:
Tie it to something enjoyable—cookies in the oven, a podcast, or a favorite playlist.
If you’re behind, don’t panic. Just start.
Ask questions. “No one knows it all,” she said. “Every year, our books should get a little bit better.”
She also recommends keeping an “Ask My Accountant” or “911” category in QuickBooks to flag any transactions you’re unsure about—so they don’t get lost in the shuffle.
What’s New in 2025 and Beyond
Tressie wrapped up the conversation with a rundown of new changes with ‘The Big Beautiful Bill.’
A few highlights include:
1099 threshold increasing from $600 to $2,000 starting in 2026.
The Qualified Business Income Deduction remaining in place at 20%.
Estate tax exemptions rising to $15 million per person in 2026.
Bonus depreciation returning to 100% for assets purchased after January 2025.
These shifts will make a big difference for producers navigating both growth and transition in the coming years.
A Final Word of Encouragement
Tressie’s message is simple: don’t let the numbers intimidate you. Every producer can learn to manage their finances with confidence—it just takes consistency and a willingness to ask questions.
“It’s okay to give yourself grace,” she said. “You don’t have to have perfect books. You just have to start.”
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About the Host of Farming On Purpose, Lexi Wright:
I’m your host, Lexi Wright. I started the Farming on Purpose Podcast from a passion for sharing the future of production agriculture.
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