The forecasted marketing year average price is provided as a guideline for what a reasonable price expectation may be for the upcoming marketing year, and is to be used to calculate the tax credit on a share crop lease.
Applicants shall use the prices corresponding to the nearest date prior to the date their lease was signed. Applicants may elect to use another price, provided documentation and explanation is provided with the application. These forecasted prices should not affect the lease arrangement in any way or actual marketing decisions and should only serve as a means to calculate the tax credit. These forecasted prices, which are based on deferred Chicago Mercantile Exchange (CME) Group futures prices adjusted for Nebraska average basis and monthly sales patterns, should not be construed as marketing advice or recommendations by NextGen, the Board of Directors, or the Nebraska Department of Agriculture.
The price shall be used for all three tax credit years in the application at the time of submission, however, applicants may revise the price higher or lower by providing documentation and explanation of the actual price received or contracted for the grain.
Instructions on using the price to complete the Cash Equivalent Statement may be found on page two of the Cash Equivalent Statement located on the Applications and Forms page.