Why Donate Grain??
Your harvest can help your community and help build the new Bremer County Fairgrounds, east of
Waverly. Farmers can turn gifts of agricultural commodities such as corn and soybeans into a donation
for its construction. By providing a portion of what you’ve grown, you’re investing in the future of our
future generations of 4-H/FFA youth and our citizens.
What are the Benefits of Gifting Grain??
For farm operators, gifting grain directly, versus selling the grain and making a gift from the proceeds,
may provide a more significant tax savings. Giving a gift of a commodity means that this is a sale that
your business never realized. Contributing unsold crop inventory allows you to avoid the sale of the
commodity as income and will not be recorded on your taxes, while the production costs may still be
deductible. Reducing taxable income may provide advantages such as minimizing or eliminating self-
employment tax and reducing adjusted gross income.
A donor should always consult with their tax preparer or financial advisor to determine the tax implications
before making a charitable gift of grain.
Timing of the gift??
Many grain farmers annually certify or document bushels of productions with Risk Management Agency
(RMA)/Crop Insurance Agents for purposes of enrolling in various agriculture subsidy programs. It is
important to visit with RMA before making a gift of grain commodities to any organization.
Another great benefit of donating grain is that it doesn’t matter if the donation is made in the year of
production or a later date. Gifts of grain can be donated from the current year or previous harvest at any
time during the tax year.
So How Does It Work??
Choosing to donate a gift of grain to the Bremer County Fair Association (BCFA) is simple. To ensure
compliance with tax laws, farmers wishing to donate a commodity should follow these guidelines:
1. After checking with your tax advisor, notify the Bremer County Fair Association (BCFA) of your
intended gift by phoning or writing us (see our contact below). Describe what the commodity is,
and the quantity being contributed. Retain a copy of the letter for your records. (The gift should
be from unsold crop inventory with no sale commitment made prior to the gift.
2. The Bremer County Fair Association will set up an account at the elevator you intend to use.
3. Transfer the bushels of grain as a gift to the Bremer County Fair Association (BCFA) by having
the elevator send a warehouse storage receipt to BCFA. The elevator’s receipt must show the
BCFA as the owner of the grain and your name on it in the body of the receipt. Important:
Please notify the BCFA when you have delivered the grain to the elevator.
4. The BCFA will provide you with a donation receipt for your gift. Do not report the donation on
your tax forms as you are not entitled to any additional deduction. The tax benefit comes from
deducting your production expenses as usual.
5. The BCFA will sell the grain and receive the proceeds. Any sales invoice will name the BCFA as
the seller of the grain. Per Internal Revenue Service (IRS) rules, it is necessary that the BCFA
had “dominion and control” of the commodity.
Thank You!
Bremer County Fair Association
PO Box 142 Waverly, Iowa 50677
Danny Buls, Treasurer. danny.buls@butler-bremer.com
Mission Statement for the Bremer County Fair Association”
“We are committed to making a positive difference for our youth and families in Bremer County and
beyond, by supporting programs, developing skills, educating, and providing facilities.”