Growing Our Homestead: Donations of Livestock and Grain
Producers may take advantage of the opportunity to donate a commodity of their choice to the MCHF & WHC – before it is sold at market. Therefore, the producer will not have taxable income from the sale. By arranging to donate livestock or grain, the producer can reduce their tax liability, while also being able to deduct related production costs on their income taxes.
Tax savings may be realized on federal income tax, state income tax and self‐employment tax, depending on your specific circumstances. It is possible that by donating these commodities to a charity prior to sale, the producer may realize a tax advantage greater than if you simply made a cash donation to the charity after the sale of your commodity.
As always, you should seek advisement from your accounting/tax professional when making charitable gifts.