Immigration Reform Bill a Big Deal for Agriculture

It has a long way to go to become law, but the recent introduction of a bipartisan immigration reform bill in the Senate is a big deal for U.S. agriculture. Within the long-awaited legislation are provisions for a new agricultural guestworker program. American Farm Bureau Federation President Bob Stallman says that’s extremely important for the future of agriculture in this country.

“We have to have workers to tend to, harvest, plant our crops. Now, without that what will happen, and what has happened to some extent when there have been worker shortages, is some operations move into another country, so we’re importing products.” Stallman said.
Stallman says the new guestworker program would provide a stable, legal workforce for U.S. agriculture.

“What we proposed was basically a two-prong program. One was a “at-will” program. That means a worker could come across the border with a legal visa and work wherever he could find work for a designated agricultural employer. So he can move from job to job as work demands dictated. Another part is the contract provisions where a worker can come across, with a proper visa, and then work under a contract much like the H2A program now only the bureaucratic requirements would be much less for the ag employers and would make it much easier for them to use the program,” Stallman said. “The Farmworkers agreed with us on this approach. One of their biggest concerns was what do you do with those farmworkers who are already here and who are improperly documented or undocumented. They need to have a status. There’s a separate program called “the blue card” to allow those workers if they have can prove they have worked in agriculture, to continue to work in agriculture for some period of time and then move forward and apply for a green card.”
Stallman says it all adds up to a much better program than what currently exists.
“One of the major problems with the H2A program was the bureaucratic nightmare, if you will, of the regulatory process to get approval for workers to come in when you needed them, when the crops were ripe and needed to be picked. Delays in the process meant that the workers wouldn’t show up when there were needed. They would show up maybe two weeks later, but that was after the crop was already ripe and you know if it’s not picked when it’s ripe, you basically lose it.”
  
But Stallman says this legislation is a win-win for everyone…including consumers.
“Americans, I think, have a greater comfort level with the fact that their food is produced here and subject to all the rigorous requirements we have for food safety. So consumers are better off with us having a strong agricultural industry in this country.”

To view a summary of the bill, click here: https://docs.google.com/file/d/0Bwdwqn87Kb-9MFVhYkRSR3VvZ00/edit?usp=sharing

Individual tax code reform a must for farmers, ranchers

From the latest FB News
With more than 96 percent of farms and 75 percent of farm sales taxed under IRS provisions for individual taxpayers, as congressional lawmakers consider tax reform they must address the individual tax code and not focus exclusively on corporate tax provisions, Farm Bureau last week told Reps. Vern Buchanan (R-Fla.) and Allyson Schwartz (D-Pa.). Further, the new tax code should be simple, transparent, revenue-neutral, and fair to farmers and ranchers.
Buchanan and Schwartz are leading a House Ways and Means Committee tax reform working group on small business. There are 10 other working groups within the committee looking at the many layers of the tax system.
Although broadening the tax base and lowering the rate are important parts of tax reform, lawmakers should note that lowering rates will impact farms and ranches differently than other businesses because farmers’ and ranchers’ income can swing so wildly as a result of unpredictable weather and uncontrollable markets, American Farm Bureau Federation President Bob Stallman cautioned.
In fact, IRS data shows that in 2010 nearly three out of every four farm sole proprietors reported a farm loss, and since 1980 farm sole proprietors as a group have reported negative aggregate net farm income for tax purposes. In light of this, a lower individual tax rate may not adequately compensate farmers for lost tax provisions and over time could result in a higher effective tax rate, which is why Farm Bureau is urging lawmakers to allow farmers and ranchers to apply the tax benefits of excess deductions and credits to previous and/or future tax years.

Among the tools farmers need to cash-flow their businesses and even out their taxable income is cash accounting-the deferral of commodity and product receipts and prepaying the cost of livestock feed, fertilizer and other farm supplies.
Farm Bureau supports the continuation of unrestricted cash accounting for farmers and ranchers who pay taxes as individuals and cautions against reducing the number of farms classified as corporate that are eligible to use it.
Another important instrument farmers and ranchers use to reduce income swings and manage tax liabilities is farm income averaging. Growers would be even better served by this provision if the averaging period were extended from the current three-year period to a five-year period, Stallman wrote to the working group. Allowing farmers the flexibility to determine how much eligible farm income to assign to a specific prior year would be beneficial, too.
    
Expensing and depreciation options are also important to capital-intensive businesses like farms and ranches. For example, the organization is calling on Congress to maintain the $500,000 Sec. 179 small business expensing limitation and not reduce the $2 million acquisition limit. This helps with the single, large purchases farmers and ranchers make, particularly for equipment.

From the Field: Spring is Finally Here

From the Field is a bi-monthly column written by Mark Campbell, Farm Bureau Field Services Director for the Central District. He writes about Farm Bureau member benefits and County Farm Bureau activities.

From small town country stores to the national nightly news; winter’s long lasting grip has been the topic of discussion this year. Just less than one week ago, some parts of the state experienced several inches of snow. Today, the temperature is in the upper 80s. Which leads me into the topic of this blog.

For a while now, row crop farmers have had all the equipment greased and prepared for planting. Fields were prepared and the seed corn was in the sheds. So when the weather turned warm and sunny, the planters were turned loose. Some county Farm Bureau meetings were lacking a quorum earlier this week, but for good reason. We have had good moisture so far this year and soil conditions seem really good. These high temperatures will raise soil temperatures in a hurry.

For the livestock folks, the warm weather has been a blessing. Hay feeding lasted longer this year because pastures weren’t really growing until we got some warm days. Needless to say, the grass has turned multiple shades greener and is growing. Most livestock producers had a surplus of hay from last year which allowed extra feeding days without a problem.

Fruit producers have fared well so far as the trees didn’t bud out too early to get snapped by a late season freeze. One fruit grower mentioned that strawberry production may be on the light side this year since the cold weather lasted into April and has now turned hot. She thinks the season will be a little shorter than normal.

Spring really is a miraculous time of year. Just taking a few minutes to observe nature really makes me appreciate the grand design of things. Trees, flowers, grass and other plants seem to have an internal clock that signals them when to wake up from their long winter’s nap. The animals are more active and almost seem to have a pep in their step. Just this morning, I saw a flock of wild turkeys on the back part of the farm with a tom strutting and spreading his tail feathers in the most impressive display of poultry bravado you ever saw. I know that in June and July I will see some baby turkeys as a result and their mothers chasing grasshoppers and June bugs.

One of the best things that I like about spring is seeing baby calves stretched out soaking up the sun on a vibrant green pasture without a care in this world. It truly is amazing how everything in nature works together in a symbiotic relationship. I am so thankful that we as farmers and ranchers are able to care for and be an integral part of nature and the cycle of life.

Even in rural America, technology has sped up the pace of life. My wish for you is to take a few minutes this week and stop. Stop and take in the sunrise. Listen to the peepers down at the creek. Listen to the quiet yet rhythmic sound of cows grazing on new pasture after you opened up the gate. Spring is a wonderful season when everything makes a grand proclamation of life. Here’s hoping that you get to enjoy nature’s display. If you read my last blog post, then I encourage you to share some pictures of your farm in the Spring on social media such as Facebook. Our fellow citizens that don’t live on farms would especially love seeing some of the sights you get to see every day.

Until next time,
Mark

Farm Bureau Sends Farm Bill Proposal to Capitol Hill

AFBF President Bob Stallman

The American Farm Bureau Federation is sent a farm bill proposal to Capitol Hill yesterday. Approved this weekend by the AFBF Board of Directors, the proposal offers a diverse mix of risk management and safety net tools to benefit a wide range of farms and it saves $23 billion compared to the cost of continuing the current program.
The American Farm Bureau farm bill proposal helps reduce the nation’s budget deficit, provides an adequate economic safety net for the nation’s farmers and is based on several core policy principles, according to AFBF President Bob Stallman.
The Farm Bureau proposal:
  • Offers farmers a choice of program options.
  • Protects and strengthens the federal crop insurance program and does not reduce its funding.
  • Provides a commodity title that works to encourage farmers to follow market signals rather than making planting decisions in anticipation of government payments.
  • Refrains from basing any program on cost of production.
  • And, ensures equity across program commodities.

“There is far less money this year than last with which to secure an adequate safety net for the many family-owned farms that make up the bulk of America’s agricultural system,” Stallman said. “Last year, Congress merely extended the old 2008 farm bill until Sept. 30 of this year. Now, while unfortunately we have less money to work with, it is vital that Congress complete a new five-year farm bill this year. Doing so is in the economic interest of our entire nation.”

Stallman said the goal of the American Farm Bureau proposal is to provide a measure of fairness among regions and crops, while providing each commodity sector a workable safety net provision for farmers who grow that crop.
“Farm policy should provide a strong and effective safety net and viable risk management programs for farmers that do not guarantee a profit but, instead, protect them from catastrophic occurrences,” Stallman said. “We also want to ensure that terms of our farm programs do not affect a farmer’s decision of which crop to plant. The program must comply with our World Trade Organization agreements.”
Farm Bureau supports a program that reduces complexity while allowing producers increased flexibility to plant in response to market demand.
Farm Bureau supports a safety net that allows farmers to purchase insurance products to further protect individual risk. The program should be delivered by private crop insurance companies.
We support producers being allowed a choice of program options.
Specifically, the AFBF proposal calls for a three-legged safety net for program crop farmers that includes: a stacked income protection plan commonly called STAX; an improved crop insurance program; and target prices and marketing loans. Under the proposal, all program crop farmers would have access to the marketing loan and crop insurance provisions and they would then select between a target price program and STAX to round out their safety net option.
The AFBF proposal also supports extending provisions of the STAX program for apples, potatoes, tomatoes, grapes and sweet corn. Covering these five specialty crops will benefit fruit and vegetable producers in 44 states. Eventually, Farm Bureau would like to cover all crops under a STAX program in the future.
“While we would have liked to have provided a STAX program for all commodity programs under the same terms as those provided to cotton last year in the Senate bill, funding is insufficient to do so,” Stallman explained.
Because of funding limits, AFBF is proposing modifications be made to STAX for all eligible commodities. Those modifications would: reduce the crop insurance premium subsidization to 70 percent from 80 percent; not offer the multiplier option; not offer a harvest price option; allow STAX to be based on yield or revenue at the discretion of the producer; and allow purchase only as a buy-up policy with a 10-25 percent deductible rather than also providing for a stand-alone policy. In addition, under the STAX program suggested by Farm Bureau, no payments would be made until the county average revenue or yield fell by 10 percent from the historic amount. 
A target price program for all program commodities would be available except for cotton. Due to terms of Brazil’s WTO cotton case against the United States, cotton farmers would likely not be eligible for a marketing loan at the current level or any target price.
For other crops, target price levels would be based on the marketing-year average price from the past five years (2007 through 2011) and those projected by the Congressional Budget Office for the next five years (2012 through 2016). To establish the actual target prices and provide general equity across crop sectors, these 2007-2016 average prices are reduced by 25 percent for corn and soybeans, 15 percent for wheat and 10 percent for rice and peanuts. Wheat has an adjustment of only 15 percent because it is produced mostly in the larger counties, making area yields less representative of individual producer experience and therefore less effective as a risk management tool.
The smaller 10 percent adjustment is applied to peanuts and rice as both crops lack insurance products that function as well as those available to the major grain and oilseed commodities. AFBF suggests the same 10 percent loss threshold be used to determine appropriate target price levels for rice and peanuts. The target price will be based on 85 percent of planted acres, but not to exceed a producer’s historical base acreage. This provides a safety net more accurately addressing the risks associated with current production decisions and eliminates the present mismatch between payments and actual production or market conditions. Capping the payment acres at the historical base minimizes any potential distortion of a target price system.
The Senate Agriculture Committee will likely begin markup of a comprehensive, long-term farm bill this month, while the House Ag Committee is considering moving a bill after the Senate Ag Committee completes its mark up.

From USDA: How to Manage Vulture Damage

Virginia is blessed with an abundance of agricultural and natural resources.  At times, this bounty can result in conflicts between farmers or homeowners with the wildlife that share our farms and neighborhoods.  Vultures have adapted well to human habitats and are increasingly involved in these conflicts.  Native scavengers, they play an important role in the ecosystem, but in some situations they can also cause damage to property and livestock.
Two different species are native to Virginia: Black Vultures and Turkey Vultures.  Populations of both have increased in abundance and range in the past 30 years. Vultures often form large roosts and loafing groups numbering from a few dozen to hundreds of individuals. 
Conflicts arise when these congregations form in close proximity to people.  Both Turkey and Black Vultures normally eat carrion, or dead animals.  However, Black Vultures can also attack and kill calves, lambs, piglets, and other vulnerable animals.  This predatory behavior often results in serious injury to livestock, as vultures target the eyes and soft membranous tissues.  These domestic animals often must be euthanized due to the extent of their injuries.

Large groups of vultures may roost or occupy woodlots near people’s homes and farms. They can damage homes and commercial buildings by tearing window caulking, roof shingles, vent seals, rubber roof liners, and pool covers.  Damage to vehicles parked at these locations includes scratched paint, removal of rubber seals and wipers, and ripping of vinyl seat covers from boats and tractors. 
Conflicts can be managed effectively under certain conditions.  Vultures are migratory birds, regulated by the U.S. Fish and Wildlife Service and protected by the Migratory Bird Treaty Act, State laws, and regulations.  It is legal to use non-lethal approaches to disperse vultures from situations where they are causing damage, though some tools may be regulated by local governments. A federal permit is needed to kill or destroy the birds, their nests or eggs.
The USDA Wildlife Services Program, a federal program, offers help with human-wildlife conflicts including vulture damage.  Technical assistance may include information on habitat management, husbandry, and tools for dispersing vultures from areas where conflicts occur.  Wildlife Services biologists also can help document vulture damage and start the depredation permit application process.
For more information about managing vulture damage, contact the USDA Wildlife Services Program at 804-739-7739 or any WS office in Virginia:

Food Safety Modernization Act Teleconferences Start

The Produce Safety Alliance, in collaboration with the Food and Drug Administration, is hosting a series of question and answer teleconferences to discuss FDA’s new produce safety regulations.

Dr. Jim Gorny, senior advisor for produce safety and Dr. Erick Snellman, policy analyst, will be available from FDA.
The teleconferences are as follows:
Mar 18     Understanding Exemptions (Recording)

Mar 25     Agricultural Water  (Recording)

April 22    Soil Amendments                          11 a.m.
April 25    Domestic and Wild Animals            11 a.m.
TBA         Growing, Harvesting, Packing; Holding  
               Activities
TBA         Equipment, Tools, Buildings & Sanitation
TBA         Health, Hygiene and Training of Workers
TBA         Recordkeeping, Compliance & Enforcement
Farm Bureau encourages states to participate in the teleconferences to learn more about the proposed rule and better determine how they may impact producer members in their respective states.
The teleconference dial-in number is (866) 906-9888. The passcode is 8140591.
For more information on the Proposed Produce Safety Rule, visit:
Proposed Produce Safety Rule at a Glance:
Proposed Produce Rule Subpart Fact Sheets:

Comment on Board of Game and Inland Fisheries proposed amendments to hunting and trapping regs

The Board of Game and Inland Fisheries has proposed amendments to the regulations to govern hunting and trapping during the 2013–2014 and 2014–2015 seasons, foxhound training preserves, and other matters regulated by the Board. The regulation amendments proposed by the Board on March 20–21, 2013 will be published on the DGIF website (www.dgif.virginia.gov) at the start of a 60-day proposed regulation public comment period that opens on April 2 and closes on May 31, 2013. Regulatory comments received by DGIF during this period will be provided to, and considered by, the Board. In order to be submitted to the Board for their consideration during regulatory actions, comments must be in writing and accompanied by the name, address, and telephone number of the party offering the comments. Comments lacking the submitting party’s identifying information may be received by staff but will not be considered by the Board.The methods for submitting written comments are:

  • Online at www.dgif.virginia.gov. An online comment systems links from the individual proposed amendments, making this the optimal channel for submitting comments; it produces the clearest and most efficient method for Board members to receive citizens’ comments on a given proposal. 
  • Email sent to regcomments@dgif.virginia.gov. Be sure to include full personal identifying information. (Using the online comment system ensures this and is preferred.)
  • Postal mail sent to Virginia Department of Game and Inland Fisheries, Attn: Policy Analyst and Regulatory Coordinator, 4010 West Broad Street, P.O. Box 11104, Richmond, Virginia 23230-1104.
  •  Comment forms available at nine public input meetings, foxhound training preserves, and other matters regulated by the Board. The regulation amendments proposed by the Board on March 20–21, 2013 will be published on the DGIF website (www.dgif.virginia.gov) at the start of a 60-day proposed regulation public comment period that opens on April 2 and closes on May 31, 2013. Regulatory comments received by DGIF during this period will be provided to, and considered by, the Board. In order to be submitted to the Board for their consideration during regulatory actions, comments must be in writing and accompanied by the name, address, and telephone number of the party offering the comments. Comments lacking the submitting party’s identifying information may be received by staff but will not be considered by the Board.  No oral comments will be taken at the meetings. 


Issue Summaries:

  • They plan to expand the Elk Management Zone to include Lee, Scott, Russell, and Tazewell Counties. This will close the elk season and effectively reintroduce elk in those counties.  This is by request of the Rocky Mountain Elk Foundation. Farm Bureau is opposed. 
  • They plan to reduce the either sex deer days in the following counties: Accomack, Amelia, Bland (Private Land), Caroline, Cumberland, Essex, Gloucester, Grayson, Grayson (Public Land), Henry, King and Queen, Northampton, Nottoway, Patrick, Powhatan, Russell (Public Land), Smyth (Public Land), Spotsylvania, Tazewell (Public Land), Washington (Public Land).  Chesterfield and King George were added by the DGIF Board by request of the Va. Deer Hunters Association. Farm Bureau is generally opposed but recognizes these are each local issues for consideration of the County Farm Bureau.
  • Expands the Bear chase or training season for two weeks in November in the following counties or portions thereof: Amelia, Appomattox, Buckingham, Brunswick, Campbell, Charles City, Charlotte, Cumberland, Essex, Gloucester, Greensville, Halifax, Isle of Wight, James city, King and Queen, King George, King William, Lancaster, Lunenburg, Mathews, Mecklenburg, Middlesex, New Kent, Northumberland, Nottoway, Pittsylvania, Prince Edward, Prince George, Richmond, Southampton, Surry, Sussex, Westmoreland, and York.  There is no direct FB policy regarding bear training seasons, this for the information of the County Farm Bureaus. 
  • Tightened the regulation of feeding deer, elk, or other wild cervids.  It will be unlawful to feed such animals in Buchanan, Clarke, Dickenson, Frederick, Shenandoah, Warren, and Wise year round and from September 1 to January 1 statewide.  All feed must be cleaned by September 1 and the area is considered to be baited for 10 days following removal.  Farm Bureau has no direct policy.  This is however, a potential area of conflict.  Farmers regularly utilize similar methods and products to feed or provide mineral supplements to livestock.  While there is an agricultural feed exemption in the regulation, it does not exempt that same farmer for hunting over those products which are now considered bait.

It’s Tax Season Part 2: Resources for Forestland Owners

So often an overlooked area during tax time are the effects on their taxes that a forestland owner faces. The Virginia Department of Forestry (DOF) has several resources for forestland owners during tax season.  These helpful items from both the USDA Forest Service and DOF can help save landowners money and headaches.

Determining your tax basis and other questions are covered in these easy-to-follow documents.

For more information and other tax resources, visit http://www.dof.virginia.gov/mgt/tax/index.htm

From the Field: Conversations About Agriculture

From the Field is a bi-monthly column written by Mark Campbell, Farm Bureau Field Services Director for the Central District. He writes about Farm Bureau member benefits and County Farm Bureau activities.

I recently attended the Virginia Farm Bureau (VFB) State Women’s Conference, and the theme was “Get Connected – Get Moving.” A big part of the conference was how to be effective in conversations about agriculture. Social media such as FaceBook, Twitter, and blogs are certainly tools of communication. But the same guidelines for being effective apply offline and in person.

Three things that resonated to me in the workshops were listening, telling your story, and being courteous. One of the workshops presented by Kathy Dixon of VFB was on getting the conversation started and utilized information from U.S. Farmers and Ranchers Alliance (USFRA) www.usfraonline.org and www.fooddialogues.com. The other presentation was by our keynote speaker, Katie Pinke from North Dakota. She is an agriculture advocate and can be found at http:/.com from which you can link to her on Facebook, Twitter, and Pinterest.

I would like to expand on the three principles that I mentioned earlier. Listening, while it may seem easy, may actually be a harder skill to perfect than we think, and I mean really listening and trying to understand what the other person is saying. How often are we thinking of what we are going to say next while the other person is talking to us? I know that I am sometimes guilty of that, especially when I hear someone spouting off talking points of differing opinions on agriculture, politics, or religion. Sometimes we need to read between the lines. Accusations against agriculture may just be a desire to really know how food is grown. One of the main missions of the USFRA is to increase transparency and have farmers and ranchers tell their story. If we don’t truly listen, we can’t effectively engage in the conversation. The speakers advised that we should have a conversation about agriculture and not a war of words.

The next principle was telling your story. The biggest take-away for me was a comment that Katie Pinke said. She said that people arguing a certain position can try to poke holes in facts or studies, but they can’t poke holes in your own story. If you are telling your own story-your own life experiences on your farm-it is impossible for anyone to discredit that. Everyone in the agriculture conversation is passionate on both sides. We in the agriculture community are science and fact-based, and we have a lot of science and facts to support our positions and practices. While this is important, we need to share more personal stories and not just regurgitate facts. Katie also said that video will increasingly be a communication tool to share personal agriculture stories. Another part of her presentation was to avoid always posting agriculture facts on your Facebook page or blog. Share some other interests you have. It will keep people more engaged and interested in what you have to say. You build relationships and credibility.

The final principle was courtesy. Let’s face it – there is a lot of noise in our society. We have TV, radio, internet, and more bombarding us with opinions all day long. One of the best ways to be effective in agriculture conversations or debates is to be courteous. People may throw dirt at you, but you don’t have to throw dirt back at them. A courteous conversation with facts and your personal story will go a lot farther than shooting back a snide remark. Plus, we have to face facts – there are some people that are not going to change their mind no matter what. Make your points and move on.

Lastly, I would like to say that the social media tools available have a lot of potential to get our message out to a huge nonagricultural audience. With the network of friends on Facebook, sharing some agriculture trivia or pictures of you on your farm or your livestock can reach people that you would have never been able to reach before, many that have never been near or set foot on a farm.

Remember, you don’t have to be armed with an arsenal of facts; just tell your story. If you need some facts, USFRA, Farm Bureau, and your national commodity organizations are good resources.

Until next time,
Mark

It’s Tax Season: Things to Remember for your Farm

Have you done your taxes yet?
Below is information from the Farm Management Newsletter sent out by Virginia Cooperative Extension on filing taxes by Gordon Groover, Extension Economist, Department of Agricultural & Applied Economics, Virginia Tech.
Income taxes and related items:
1. The “Fiscal Cliff” set back the IRS in finalizing the rules and regulations for the 2012 tax filings. The federal filing deadline for all farmers has been moved to April 15, 2013.
2. Virginia Income Taxes: In response to recent action by the IRS, the Virginia Department of Taxation is providing relief from the estimated tax underpayment penalty for farmers, fishermen, and merchant seamen who are unable to file and pay their 2012 individual income taxes by the March 1 deadline. In order to receive an automatic waiver of the estimated tax underpayment penalty, farmers, fishermen and merchant seamen must file their returns and pay the entire tax due by April 15, 2013. For more information, see Tax Bulletin 13-2 (P.D. 13-12).
3. Need to find out more information about federal taxes? The Farmers Tax Guide IRS Publication 225 is online and can be found at: http://www.irs.gov/pub/irs-pdf/p225.pdf

4. Decide how much you’ll contribute to an IRA for the 2012 tax year and set goals for 2013. If you use a certified financial planner (CFP), consider his/her usefulness in helping plan for retirement, college, insurance coverage, and other items. Visit the web site for the CFP organization to get information on services and standards required for planners. You can search for a CFP in your area at http://www.cfp.net/.
5. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
·         56.5 cents per mile for business miles driven.
·         24 cents per mile driven for medical or moving purposes.
·         14 cents per mile driven in service of charitable organizations.
·          For details see: http://www.irs.gov/pub/irs-drop/n-12-72.pdf
Virginia’s Sales Tax: How you file is changing. Quarterly filers will be required to file and pay Sales and Use Tax (ST-9 and ST-9CO) electronically beginning with the July – September 2013 return, due October 20, 2013. Returns and payments can be filed electronically using eForms, Business iFile or Web Upload.