Gifts of Crops

Tax laws allow farmers to gift part of their crop production (grain, corn, beans, etc.) to charity (e.g. parish or diocese). There are significant tax benefits of giving crops instead of cash. It’s a very simple process and many farmers in our diocese take advantage of it. For example, when a farmer takes a load of grain to the elevator, the farmer first notifies the church, the church notifies the elevator to sell and send the check to the church. The farmer cannot sell the grain or instruct the elevator to sell the grain – this must be done by the church. In this case, the farmer does not count the value of the grain sold by the church as income, thus avoiding all income and self-employment taxes, and is further allowed to deduct the expenses related to the production of that grain on Schedule F in the year paid. This is a wonderful way to provide first fruits to God’s service without bearing the burden of Caesar’s Tax.

For more information download Gifts of the Harvest (PDF)