Ranch Accounting – Ellis County (OK)

Shattuck CPA Services

Change never comes easily, and that’s especially true in agriculture. Even the most seasoned cattle and livestock ranchers are often faced with operational and financial surprises that may require plans to change. New Mexico cattle ranchers have worked through many obstacles, whether it’s water shortages that limit grazing, increasing feed costs, land loss or issues with packers and marketers. When Ellis County ranchers face unexpected challenges, having a seasoned farm and ranch advisor by your side can help you understand your available opportunities and make progress toward your goals.

Evaluate Your Current Provider

If your current provider is too large or too small, consider the benefits of working with a mid-sized ranch CPA firm. Adams Brown provides farmers and ranchers with:

  • A team of advisors, including a principal, dedicated to working with you
  • Advisors who serve as an extension of your team that you can count on in good times and bad
  • Direct and ongoing communication with everyone on your service team
  • Access to specialized agribusiness knowledge and expertise
  • CPAs who were raised on family farms and still find time to lend a hand

Cattle Ranch Experience – Ellis County

Adams Brown, Strategic Allies and CPAs, is a certified public accounting firm that specializes in serving the accounting, tax, consulting, audit,  trust and wealth management needs of farms, ranches and their owners. We work with agriculture businesses in Ellis County and across Oklahoma, providing farm management, tax compliance and financial planning services while offering real-world insights from first-hand experience.

WHAT CLIENTS HAVE TO SAY

“The professional staff is competent and sincere. My advisor is patient and takes extra time during discussions to thoroughly resolve issues.”
Josh Miller, Peace Creek Farm, LLC, Sylvia, KS

Oklahoma Tax Incentives for Farmers & Ranchers FAQs

What is the Sales Tax Exemption for Farm Machinery?

Farm machinery used directly on a farm or ranch in the production of agricultural products is 100% exempt from sales tax. Oklahoma rules also include repair and replacement parts, lubricants, expendable supplies such as baling wire and binder twine, certain hand tools and qualifying production-related equipment. Highway-licensed motor vehicles generally do not qualify.

What is the Sales Tax Exemption for Feed, Seed and Livestock Supplies?

The state offers a 100% sales tax exemption for the purchase of feed, seed and livestock supplies assuming certain requirements are met. A rancher/farmer must obtain an Agricultural Permit Exemption Card which is presented at the time of purchase to confirm participation. Eligible items include seeds, feed, fertilizer and livestock pharmaceuticals. It is important to note that feed not used for commercial agriculture production, such as pet food, is not eligible.

What is the Livestock Sales Exemption?

State law dictates the sale of livestock (such as cattle and horses) are 100% exempt from sales tax when sold to farming or ranching operations that operate as for-profit. In other words, a commercial transaction. It does not cover transactions between hobbyists, recreational farmers, or pet owners.

To complete a tax-exempt sale, the seller/producer must regularly be engaged in farming for a profit. The buyer must provide written certification stating they are also regularly involved in the business or raising animal life for marketing and the animals will be used for that state purpose. Finally, the buyer must hold an Operational Exemption (SMX Card) from the Oklahoma Tax Commission. It is important to note there are certain cases where an SMX card is not required to receive the exemption, as the buyer’s certification is considered sufficient.

What is the Motor Fuel Tax Refund?

The state offers a motor fuel tax refund for gasoline purchases to run eligible equipment including farm tractors or stationary engines owned or leased by a rancher. The refund cannot be claimed on fuel used in vehicles like pickup trucks, cars, or commercial trucks even if used on a ranch. The amount of the refund is limited to $.1692 per gallon which constitutes the full tax rate minus the $.02 agricultural levy.

The refund has to be claimed by the rancher within three years of the fuel purchase date. To make a claim the business owner should complete and submit Form 130 Application for Refund of Motor Fuel Tax. Refunds are issued via direct deposit, requiring the submission of an additional Refund Direct Deposit Form ARDD-100.

What is the Investment/New Jobs Tax Credit?

The credit is designed to provide a credit based on a minimum investment of $50,000 in depreciable property or the addition of the full-time- equivalent employees engaged in eligible activities. Typically, Oklahoma ranchers and farmers do not qualify for this credit unless involved in agricultural processing operations. This can include activities such as turning raw crops into packaged goods, milling, or commercial meat processing. The five-year credit amount is determined by the greater of 1% per year of investment in new depreciable property, or $500 per new job. If the business is located within an enterprise zone, the credit value doubles to 2% per year based on investment of $1,000 per new employee when investments exceed $40M.

Map of Ellis County (OK)

Shattuck (OK) Ranch Tax & Accounting Services

  • Agreed Upon Procedures
  • AgriBuilder (proprietary integrated accounting and farm management solution)
  • Budgeting & Forecasting
  • Business Tax Planning & Compliance
  • Business Transformation
  • Cash Flow Management
  • Financial Statement Audits
  • Outsourced Accounting
  • Succession Planning
  • Tax Planning & Compliance for Farm Owners
  • Wealth Planning

About Ellis County (OK)

Ellis County has a deeply rooted ranching community shaped by the open rangeland, rolling plains and semi-arid climate of northwestern Oklahoma. Beef cattle production is a major part of the local agricultural economy, with many family-owned ranches operating cow-calf herds on native grass and improved pasture. Some producers also grow wheat, hay and other forage crops that support livestock operations and provide additional sources of farm income. Seasonal wheat pasture can offer grazing opportunities for stocker cattle, while large tracts of native grassland support year-round ranching and wildlife habitat. USDA data identifies cattle production, agricultural land and livestock sales as central components of the county’s farm economy.

Ranchers in Ellis County regularly manage challenges related to drought, limited water supplies, extreme temperatures, wildfire risk, rising feed costs and changing cattle markets. Careful stocking rates, pasture rotation, water management and forage planning are important for protecting grasslands and maintaining productive herds. The Ellis County OSU Extension office supports local producers with research-based information on livestock management, forage production, agricultural economics and youth agricultural education. Ranching remains an important part of the county’s identity, supporting local feed suppliers, veterinarians, equipment businesses and multigenerational agricultural families.