Pfaltzgraff Farms Named Colorado Association of Conservation Districts Conservationist of the Year

The Roy Pfaltzgraff Jr. family received the Colorado Association of Conservation Districts 2019 Conservationist of the Year award in Colorado Springs. The award was presented at the annual CACD meeting Nov. 20. The family will also be honored again during a rodeo performance at the National Western Stock Show in January.

After working with farmers in Nigeria adapting new crops and farming techniques since 1967, Roy Pfaltzgraff Jr., his wife Kathy, and their family returned to the family farm to join his father-in-law in 1973. The farm, south of Haxtun, dof 2,080 dryland acres.

Roy first planted sunflowers in 1975 and no-till corn and milo in 1983. In 1999, the farm converted totally to no-till and son, Roy Pfaltzgraff III, joined him. By then every field was being soil sampled and fertilizers were applied as prescribed. Farm records were computerized so crops could be analyzed financially.

To further their no-till education, they attended Colorado Conservation Tillage Association’s conference in Burlington and Farming Evolution in Holyoke. Comparing 20-year crop records to Haney soil tests, sunflowers had a positive effect on soil health with wheat/fallow the poorest. A five-year rotation with a crop on every acre every year was initiated.

Q&A: Financed Equipment Trades 

Q. I traded tractors and financed the difference so no cash was paid.  How do I enter this transaction?

A.  To simplify the example I’m going make a few assumptions:

• You’re already tracking each major piece of equipment as its own Service center in FBS.
• You’re relying on an accounting professional who’s maintaining a depreciation schedule and can advise you how to book gain/loss on the trade.
• Here’s a section of the sales contract:

• The new tractor is purchased for $199,900.
• The old tractor is traded in for $159,000.
• You’ll pay a $40,000 “boot.”
• However, the equipment company will finance 100% of that amount.

1. Because no cash is involved this can be recorded as a Journal Entry. If cash is paid you can record a check or accounts payable.

2. The first line is a credit (-$159,900) entry to the traded equipment asset account and Service center.
3. The second line is a debit ($199,900) entry to the purchased equipment asset account and Service center.
4. The third line will automatically calculate the difference ($40,000).  Code that amount as a credit to a loan liability account and center. If that’s not the net value of the loan there may be some miscellaneous processing fees that need to be recorded to balance the transaction.

That completes the initial transaction.   When you’re ready to close out your tax year your accountant will calculate recaptured depreciation on the traded item and provide you with the appropriate closing journal entry.