News

How Do I Defer a Grain Payment? A Mid-December Solution for the Undecided

Corn into Cash Ag Nook money

Landus Cooperative offers customers the opportunity to “defer payment” by settling grain now and paying you for it in the next tax year. We have been offering this service for years and will continue to offer it in the future. 

As you near the end of the year, here are some tips for deciding when and how to defer a grain payment. 

You know NOW you want your money in 2020: Let us know at the time you are settling the grain. You will need to sign some paperwork in order to have the payment deferred to another time. It is a straight-forward process.  Checks will be available on the first business day of the new year. 

You have not yet decided if you want your money THIS YEAR OR NEXT YEAR: We understand many folks meet with their accountants in December to make this decision. It is important that you tell us about this situation at the time you are settling grain. 

What if you already deferred but change your mind and you want your money now? There is a penalty of $50 OR $0.05 per bushel (whichever is greater) for “early withdrawal” of the funds. This is similar to a penalty for early withdrawal from a 401K account or cashing in a certificate of deposit (CD) early. 

SOLUTION: Defer payment until the middle of December, so you can make a decision. 

  • Want your cash in December? Great. We’ll give you a check on the date agreed to previously. 
  • Want your cash in January? No problem. Just make sure you inform us of that at least 2 days prior to the December date. Sign some additional paperwork by then, and there’s no penalty to roll it to next year.

The key to all of this is to make sure our team knows what you want to do with your money. Once we write a check and send it to you, it is too late to reverse course. 

We appreciate your business and look forward to the best time of the harvest season…pay day!