Monday January 7 Ag News

NeCGA Officer Team Elected

Members of the Nebraska Corn Growers Association gathered at Nebraska Innovation Campus in Lincoln on Wednesday, December 19th, for their Annual Meeting. Following the Annual Meeting, NeCGA held their regular board meeting and elected officers.

Dan Nerud, of Dorchester, was elected as President. Other officers elected include: Andy Jobman of Gothenburg, Vice President; Chris Grams, of Upland, Secretary; and Tom Nathan of Meadow Grove, Treasurer. Dan Wesely, past President of NeCGA, moved to Chairman of the Board. The board is thankful to Dan for his two years of service leading the organization.

During the Annual Meeting, NeCGA delegates elected two at-large members to the board. Rick Gruber, of York, was re-elected, and Michael Dibbern, of Cairo, was elected. Curtis Rohrich, of Wood River, did not seek re-election to the board of directors. He continues to be active in the Buffalo Hall Corn Growers Association.

“We are very grateful for the volunteer efforts that our grower leadership and officers give on an annual basis,” said Kelly Brunkhorst, executive director of NeCGA. “I look forward to working alongside our leadership team in increasing opportunities for our membership in the coming year. I also want to thank Curtis Rohrich for his twelve years of service on the board following his decision not to seek re-election.”



February 5, "Production Improvements in Cow-calf Systems" Workshop

The theme for the 2019 Beef Profit Tips Workshop at ENREC is “Production Improvements in Cow-calf Systems”. On Tuesday, February 5 from 1:00 pm. - 4:30 p.m. at the Eastern Nebraska Research and Extension Center near Mead, NE (formerly ARDC), Extension speakers will discuss management strategies to alleviate costs or improve management in your system.

Extension educator, Mariah Woolsoncroft, will discuss meeting cow requirements with low cost feedstuffs. With low hay supplies, what can you use and what does the cow need? Dave Boxler, Extension Educator, considers how timing of management strategies for flies can impact cowcalf systems. Knowing how to stock cornstalks and how to determine a rental rate agreement while utilizing cornstalks will be presented by Kristen Ulmer, Extension Educator. The small detail but large impact of mineral supplementation and cow needs in a forage system will be discussed by Mary Drewnoski, Extension Beef Systems Specialist.

The cost to attend is $15 at the door, which covers meeting materials and refreshments. Please pre-register by Friday, February 1 to ensure materials are available and refreshments are waiting. For more details or to register, contact Nebraska Extension in Saunders County at 402- 624-8030 or email Kristen Ulmer, kristen.ulmer@unl.edu.



FEEDING MOLDY HAY
Bruce Anderson, NE Extension Forage Specialist

               Moldy hay.  No matter how hard you tried, last summer you baled some hay a little too wet and now you have some mold.  So how do you go about feeding this moldy hay safely?

               Feeding moldy hay to livestock is a tough decision.  Although all hay contains some mold, when mold becomes easily noticeable the decision becomes important.

               Usually, mold makes hay less palatable, which can result in lower intake or even in animals refusing to eat the hay.  Other problems from mold can occur because of mycotoxins produced by certain mold fungi.  This is a big part of the decision problem since not all molds produce mycotoxins and the amount produced by those that do is unpredictable.

               Direct negative affects of moldy hay are difficult to document.  Horses may be more sensitive to mold than most common livestock.  For instance, mold spores often contribute to respiratory and digestive problems like colic or heaves in horses.  Cattle apparently are less affected by mold, but certain molds can cause mycotic abortions or aspergillosis.  People, too, can be affected by mold spores.  Mold can cause a condition called farmer’s lung, where the fungus actually grows in lung tissue.  So try to avoid breathing in many of these spores.

               The best course of action often is to minimize feeding moldy hay to more sensitive animals, like horses or pregnant cows.  This may require a keen eye or sensitive nose when selecting hay to feed each day.  Mixing moldy hay with other feedstuffs can dilute problems sometimes, but be careful that you don’t make your animals sick by tricking them into eating bad hay that they normally would refuse.

               Moldy hay is a difficult problem to deal with.  Common sense and good observation often are your best decision aids.



Accounting for Agriculture: Step Up While Passing Down
Austin Duerfeldt - NE Agricultural Systems Economist Extension Educator

A major consideration in estate planning is the transfer of assets to the next generation. There might be corn in the grain bin, a prized family tractor, farm land, and numerous other assets that are passed down in an estate.

First, we need to understand what basis in an asset is. Basis in any asset is simply what you paid for it, plus any capital improvements you’ve made, minus any depreciation you’ve expensed.

Let’s assume Dad buys land for $1,000 an acre. Dad didn’t make any improvements to it and since land can’t be depreciated, those factors don’t come into play. Now Dad wants to sell that land and the current market value is $8,000 an acre. Obviously, Dad owes a bit of capital gains tax. What if Dad decides to hang on to that land and let his beneficiaries inherit it? The beneficiaries get the land at its fair market value on Dad’s date of death. That’s the step-up in basis.

Let’s assume we inherit the land and the value on Dad’s date of death was $9,000 an acre. If we decide to sell the land for $9,000, we owe no tax. We’re selling it for our basis in it. If we sell it for $10,000 an acre, we have a $1,000 per acre capital gain and we owe tax on this. It’s also possible that land prices could fall. What if we hang on to the land and the value drops?     If we sold the same piece of land for $8,000, we would take a $1,000 loss per acre on our tax return. Let’s walk through this in more detail so we fully understand. The example will follow a married couple living in Nebraska.

Death of the First Spouse
The initial step-up in basis actually happens when the first spouse passes away. The Internal Revenue Service (IRS) looks at assets owned by a married couple, such as grain in the bin, as a 50/50 split between the couple. Let’s assume we have 20,000 bushels of corn in the bin. According to the IRS, 10,000 bushels of corn belong to one spouse, while the remaining 10,000 bushels of corn belong to the other spouse.

What that means at the time of the first spouse’s death is that 10,000 bushels of corn inherited by the surviving spouse receives a step-up in basis. If the price of corn was $3.45 on the date of death of the deceased spouse, the surviving spouse has the following:   10,000 bushels of corn with zero basis and 10,000 bushels of corn with a basis of $34,500. What happens if the surviving spouse sells the 20,000 bushels for $3.30?   There would be a gain on the grain sale with zero basis of $33,000 and a loss of $1,500 on inherited property on the grain sale with a basis of $34,500.

The surviving spouse also inherits 50% of all the farm machinery and livestock. Let’s assume that family tractor was purchased years ago and is fully depreciated. The remaining basis prior to death was zero, but now, the surviving spouse gets to assume a new basis. That new basis is the fair market value in the deceased spouse’s half of the tractor. If the fair market value is $40,000, then half would be $20,000. If the surviving spouse chooses to have a farm sale, they will be able to reduce the sale price of this tractor by their $20,000 basis on their tax return.

Farm land works the same way. Depending on how it’s titled, the surviving spouse could inherit the deceased spouse’s half of farm land at its fair market value on date of death.

Death of Remaining Spouse
Another step-up in basis occurs when the second spouse passes away. For simplicity we’ll assume they had only one child who received everything, but it would work the same if the assets were split between multiple children, or even non-related parties. At this point, similar to what happened above happens again, but this time it’s for 100% of all assets. Let’s assume that our one beneficiary is a farmer, and that the surviving spouse decided not to sell that tractor. The child inherits the tractor at its full fair market value at the date of death of the second spouse. They could choose to sell it as mentioned before, or if they decide to keep it for use, they could actually depreciate the tractor.

Estate of Backemeyer v. Comm., 147 TC 17, 2016
This Tax Court opinion out of Nebraska leads to some interesting options. The case dealt with an active, cash basis farmer who purchased customary amounts of prepaid expenses late in the year. Before those prepaid assets of seed, fertilizer, chemicals, and fuel were used the following year, the farmer passed away. Mrs. Backemeyer took over the farm and used those assets to raise the crop in the year of death, filing her own Schedule F. She maintained that those prepaid assets should qualify for the step-up in basis. In other words, the prepaid assets were routinely expensed in the year of purchase, but Mrs. Backemeyer held that they received the step-up in basis which would allow her to claim the same costs again in the following year. The IRS initially disallowed Mrs. Backemyer’s deduction. However, the tax court agreed with Mrs. Backemeyer and noted that “the estate tax intervened between the two deductions.”

Current law not only supports the step-up in basis for grain, livestock, machinery and land, but also for prepaid assets on hand. Considering this example, it may be beneficial to have plans in place to inventory remaining prepaid assets on hand on the date of death. For example, part of the seed may have been planted or part of the feed may have been consumed. For tax purposes a beneficiary may be required to prove the remaining value of supplies.

Summary
Through this article I hope you’ve gained a better understanding of the basics of a step-up in basis. A step-up in basis can be viewed as an opportune time to sell long-held farm ground that appreciated in value, with little to no capital gain issues. It plays a vital role in estate planning. In the individual case of each farmer/rancher, how the step-up in basis might work for your operation varies on many specific circumstances. Developing an estate planning team that includes professionals such as an attorney and accountant, as well as, investment and insurance advisors will help you develop a strategy that works best for you.



AGRIBUSINESS PROGRAM NOW OFFERED TO UNDERGRADUATE STUDENTS ON CRETE CAMPUS

Doane University’s recently launched Agribusiness program is expanding its course offerings to undergraduate students on the Crete campus.

Beginning this month, Doane’s College of Arts & Sciences will offer students the opportunity to complete a Bachelor of Arts in Agribusiness that includes a blended curriculum of both online (eight-week courses) and on-ground classes (traditional semester). The curriculum is designed to help prepare graduates for employment in a variety of fields including international agriculture, agricultural marketing, farm and ranch management, resource economics, rural development, and banking.

Students will also have the opportunity to declare agribusiness as a minor or emphasis area. The following courses are only offered online by Doane University as part of this program: Ag Futures & Options, Ag Law & Policy, Advanced Ag Technology, Ag Finance, Ag Sustainability, and Advanced Ag Management.

“It is important to understand the future of food and sustainability, both locally and globally,” says Dr. Jennifer Bossard, associate professor of economics. “The agribusiness program prepares our students to have a role shaping this future as well as having a voice in these conversations.”

As Dr. Bossard explains, the program is interdisciplinary, merging science and business. In the program, students will establish a foundation in both business and environmental science and then build on that foundation by taking several agribusiness courses that integrate these fields. As students progress through the program they will enhance their skills in communication, critical thinking, and collaboration, which will prepare them to be leaders in the field once they graduate.

“This is an area of study that is in demand,” says Dr. Pedro Maligo, Dean of the College of Arts & Sciences. “Our ability to deliver this program with its interdisciplinary design means that students will be well-prepared from a variety of perspectives, thus enhancing their competitiveness as graduates of the program.”

Doane’s College of Professional Studies began offering a Bachelor of Arts in Agribusiness to adult students in August of 2018.



Climate Change is topic of Jan. 15 Omaha Science Cafe

Jesse Bell, Ph.D., will discuss why climate change matters to our health at the next Omaha Science Café at 7 p.m. on Jan. 15 at the Slowdown, 729 N. 14th St.

Dr. Bell is the Claire M. Hubbard Professor of Health and Environment in the Department of Environmental, Agricultural, and Occupational Health in the College of Public Health at the University of Nebraska Medical Center.

His research explores the relationships of climate and extreme weather on natural and human processes. He served as a lead author for the U.S. Global Change Research Program report, “The Impacts of Climate Change on Human Health in the United States: A Scientific Assessment,” that was released by the White House in 2016.

Before coming to UNMC, Dr. Bell developed a joint position between the Centers for Disease Control and Prevention and the National Oceanic and Atmospheric Administration. In this role, he led and coordinated a variety of climate and health projects.

Dr. Bell also serves as a Daugherty Water for Food Global Institute Faculty Fellow and adjunct faculty for the Department of Environmental Health at Emory University. His doctoral degree is from the University of Oklahoma.

Science Cafés involve a face-to-face conversation with a scientist about current science topics. They are open to everyone (21 and older) and take place in casual settings like pubs and coffeehouses. Each meeting is organized around an interesting topic of conversation. A scientist gives a brief presentation followed by a Q-and-A period.

Pizza will be provided for the first 50 people. For more information about Science Cafes, go to www.unmc.edu/sciencecafe.



Six Months since China’s First Retaliatory Trade Tariff Imposed on U.S. Soybeans

It has been a full six months since China retaliated against President Trump’s 25 percent tariff on $34 billion worth of Chinese goods. That tariff, which took effect July 6, 2018, has rocked the foundation of a decades-old trade relationship U.S. soybean farmers built with China, the largest market for American beans. And, it has resulted in halted sales, plummeting crop prices, and a lack of security for farmers seeking funding for the 2019 season.

Davie Stephens, a soybean grower from Clinton, Ky., and American Soybean Association (ASA) president stated, “We are anxious to see real progress to end this trade war quickly. With Ambassador Gregg Doud of the Office of U.S. Trade Representative (USTR) and Under Secretary Ted McKinney of the United States Department of Agriculture (USDA) among the delegation in China to discuss trade today, we are hopeful that real progress is forthcoming.” Stephens continued, “This has been a long and costly half year for farmers, and we need stability returned to this market. We cannot withstand another six months.”

The value of U.S. soybean exports to China has grown 26-fold in 10 years, from $414 million in 1996 to $14 billion in 2017. China imported 31 percent of U.S. production in 2017, equal to 60 percent of total U.S exports and nearly one in every three rows of harvested beans. Over the next 10 years, Chinese demand for soybeans is expected to account for most of the growth in global soybean trade, making it a prime market for the U.S. and other countries.

U.S. soybean growers have realized a nearly 20 percent drop in soy prices since the threat of tariffs began last summer, and the future of soy growers’ relationship with China continues to be in jeopardy. China has pursued new means to procure soybeans and other protein crops, including maximizing soybean imports from other exporting countries, particularly Brazil.

Growers have taken to Twitter and other social platforms today with the hashtag #185DaysStillNeedTrade, along with the popular #RescindtheTariffs hashtag to continue demanding that the Administration bring an end to its lingering trade war with China and help restore certainty and stability to the soy industry.




USB Awards Grant to Increase Soybean Protein Content

A grant from the United Soybean Board supports Amfora to develop soybean varieties with increased protein content. The grant from USB will provide Amfora with $350,000 in funding for a one-year period.

If certain milestones are achieved, USB may, at its discretion, provide additional funding in the following years. Amfora is a self-described biotechnology company that is applying gene editing to sustainably feed the planet.

USB CEO Polly Ruhland says increasing the protein content of U.S.-grown soy “is a key strategic objective for USB.” Amfora Chief Science Officer Michael Lassner says the company already demonstrated it can significantly increase the protein content of soybean seed by re-programming a genetic switch in the soybean genome.

By doing so, he says, the program could “accelerate the development and launch of soybeans with at least 10 percent more protein across the U.S. soybean belt.”



Commodity Classic Early Registration Discount Ends January 10
   
Thursday, January 10th is the deadline for the early registration discount for Commodity Classic—America’s largest farmer-led, farmer-focused agricultural and educational experience.

The 2019 Commodity Classic will be held Thursday, February 28 through Saturday, March 2 in Orlando, Fla. To register, reserve hotel rooms and sign up for email updates, visit CommodityClassic.com. A complete schedule of events is also available on the website.

Established in 1996, Commodity Classic is unlike any other agriculture event, featuring a robust schedule of educational sessions, a huge trade show featuring the latest technology, equipment and innovation, top-notch entertainment, inspiring speakers and the opportunity to network with thousands of farmers from across the nation.



New App Connects Beekeepers and Growers

Pollination Network, a mobile app that helps local farmers and growers find bees and beekeepers, launched this week in the Apple App Store and Google Play Store. The app helps beekeepers to find jobs with nearby growers, and it allows growers to post public listings and hire beekeepers within the app.

"It's become more and more difficult for growers to find bees over the years," said Brandon Bouye, owner and founder of the app. "But it's been just as hard for beekeepers to keep their hives growing and their businesses afloat. We wanted to change that."

When beekeepers download the app, they will have access to a map featuring job listings from growers across the country who need bees. They can filter by location, expected price rate, and quality of bees, and apply for jobs straight from the app.

Growers will be able to post listings from their smartphones, customizing each job listing to their specific needs. Then, employees at the Pollination Network headquarters will manage the listings and notify growers when a suitable beekeeper is found.

"Strengthening the grower-beekeeper relationship doesn't just improve a tiny corner of the economy," Bouye said. "It protects the environment, and it puts food on the table for people across the country."

The Pollination Network app can be downloaded for free in the Apple App Store and Google Play. For more detailed information, visit https://www.pollinationnetwork.com/.



American Vanguard Acquires Herbicide Line from Corteva

American Vanguard Corporation announced the acquisition of the Quizalofop (QPE) product line of herbicides from Corteva Agriscience, Agriculture Division of DowDuPont. The primary markets for these products are in canola, soybeans and pulse in the United States and Canada. This transaction includes acquisition of technical registrations, commercial sales information, and the transfer of existing product supply arrangements. Financial terms are not being disclosed.

Eric Wintemute, chairman and CEO of American Vanguard commented, "Our acquisition of the QPE product line from Corteva Agriscience provides our crop protection business with a portfolio of valuable herbicide brands that hold significant leadership positions in the North American market. These products are complementary to existing glyphosate, glufosinate and 2,4D use, and are highly regarded for weed and grass control by providing a broad window of application and excellent crop safety."

Wintemute continued, "Additionally, the new DowDuPont Enlist seed trait technology for corn provides crop tolerance to these QPE herbicides, making them ideal for achieving improved weed management. In this acquisition, AVD has secured a license to market QPE for use alone or with Enlist herbicides over-the-top of the new Enlist corn seeds, a segment that is forecast to grow considerably in coming years."

Wintemute concluded, "These products have a well-established market position, are solidly profitable and offer the promise of growth as the Enlist trait technology expands. In this transaction, we also acquired the rights to market in Argentina and Chile which dovetails with our initiative to increase market access in that South American region. We will continue multiple existing supply agreements for these products and incorporate the sales & marketing of these brands into our expanding portfolio of herbicide offerings."