In the sixth edition of Tips and Tricks, we’re diving into practical areas that directly impact your bottom line: taxes, safety and generator maintenance.
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100% Bonus Depreciation Is Back
One Big Beautiful Bill passed recently, and it brought back a major benefit for small businesses: 100% bonus depreciation.
Here’s what that means: Back in 2017, the Tax Cuts and Jobs Act allowed for 100% bonus depreciation on additions to your small business. That was set to phase out by 2027. By 2025, we were looking at only being able to deduct 40% of a purchase, like a big Case tractor.
But now, thanks to this new bill, bonus depreciation is back at 100%. Even better, it’s retroactive to January 19 of this year. So if you bought something at the end of January and it went into service this year, you can fully deduct it—no need to spread the depreciation over multiple years.
That said, get with your tax guy to confirm the details. If you don’t have one, I highly recommend getting one. They can probably save you more money than their fee will cost you!
Act on Safety Risks
According to the National Council on Compensation Insurance, slip and fall accidents are the second most costly insurance claim right behind vehicle accidents.
But instead of repeating all the safety tips you already know, here’s a different kind of advice: how are you dealing with known risks on your farm?
There’s a concept called “normalization of deviance.” It’s when something keeps working, even though it's not safe, so we stop seeing the risk. That old ladder with the missing rung? The broken brace? Just because it hasn’t failed yet doesn’t mean it won’t.
So here’s the real tip: act now. Don't just set that broken ladder off to the side. Instead, put it in your truck so you’re forced to deal with it. Got a light bulb in a precarious spot? Take it out and leave it somewhere you’ll remember to replace it.
If your team rides in the back of ATVs, maybe set a $25 fine for anyone (even you) caught hanging off the back. Make safety something you act on, not something you only think about.
Remember the scuba diving mantra: Stop, breathe, think, act. On the farm, that means stop ignoring the risk, take a deep breath, think about the consequences and act before something happens.
Generator Maintenance Reminders from Auburn University
We recently heard from Dr. Jesse Campbell of Auburn University on maintaining generators, and the timing is perfect as we head into storm season.
To keep your generator running properly, it needs clean air, clean fuel, a strong battery and functional electronics that tie it to your home.
Here are Dr. Campbell's tips:
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Keep your radiator clean.
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Make sure your fuel tank and filters are clean.
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Replace your battery at least every two years.
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Inspect your fuel lines for water, clogs or cracks.
Generators are one of those things you don’t need until you really need them. So before fall storms hit, go ahead and get yours cleaned up and ready to run.
Contact Us
We hope these reminders are helpful. If you have any questions or ideas for future videos, we’re always open to suggestions. Reach out to me at allen@southlandorganics.com. Until next time!
