Monday, August 26, 2024

Monday August 26 Ag News

Colfax County Farm Bureau Annual Meeting
Join our Colfax County Farm Bureau Annual Meeting at the Farm Bureau Office in Schuyler, NE.
September 3 | 7:00 pm – 9:00 pm CDT
Farm Bureau Office – Schuyler
1035 Rd E
Schuyler, Nebraska 68661


Saunders County Farm Bureau Annual Meeting
Join our Saunders County Farm Bureau Annual Meeting at the Lake Wanahoo Educational Building in Wahoo, NE.
September 5 | 6:00 pm – 8:00 pm CDT
Lake Wanahoo Educational Building
1655 County Road 16
Wahoo, Nebraska 68066
Please RSVP to Dustin Woita at (402) 443-8921 (call or text) by August 15, 2024.


Pierce County Farm Bureau Annual Meeting
Join our Pierce County Farm Bureau Annual Meeting at the Senior Center in Pierce, NE.
September 8 | 6:00 pm – 8:00 pm CDT
Senior Center – Pierce
107 W Main Street
Pierce, NE 68767
RSVP by September 2 to (402) 329-6284.


Burt County Farm Bureau Annual Meeting
Join our Burt County Farm Bureau Annual Meeting at the Chat Center in Tekamah, NE.
September 8 | 6:00 pm – 8:00 pm CDT
Chat Center
1124 S 13th Street
Tekamah, Nebraska 68061


Madison County Farm Bureau Annual Meeting
Join our Madison County Farm Bureau Annual Meeting at the Farmer’s Pride COOP in Battle Creek, NE.
September 8 | 6:00 pm – 8:00 pm CDT
Farmer’s Pride COOP
83755 NE-121
Battle Creek, Nebraska 68715


Cedar County Farm Bureau Annual Meeting
Join our Cedar County Farm Bureau Annual Meeting at Hartington Golf Club in Hartington, NE.
September 15 | 6:00 pm – 8:00 pm CDT
Hartington Golf Club
710 West Clubhouse Dr
Hartington, NE 68739
RSVP by September 8 to Josh Graham at (402) 640-7924.


Stanton County Farm Bureau Annual Meeting
Join our Stanton County Farm Bureau Annual Meeting at the VFW Club in Stanton, NE.
September 17 | 6:00 pm – 8:00 pm CDT
VFW Club
1106 Veterans Avenue
Stanton, NE 68779 United States
RSVP to Lynn Schellpeper at (402) 860-0896.



Estate Planning: Stepped-Up Tax Basis

Anastasia Meyer Agricultural Economist and Nebraska Extension Instructor


A key consideration in estate planning is the transfer of assets to the next generation as 98% of farms are family owned and operated. Additionally, active operators or retired farmers own 75% of U.S. farmland (AgAmerica, 2023). As the average age of an operator increases, there is going to be a large transfer of farmland and other assets in the future whether by gifting, selling, or passing the farm to the next generation through inheritance.

Stepped-up basis is a tax provision that allows the value of an inherited asset to be adjusted to its fair market value at the time of the original owner's death. This adjustment increases the asset's basis, which is the value used to determine capital gains or losses when the asset is eventually sold by the heir. By stepping up the basis to the asset's current market value, any appreciation that occurred during the original owner's lifetime is not subject to capital gains tax, potentially reducing the tax liability significantly for the heir upon the sale of the asset. Although long-term capital gains are taxed at a lower rate relative to other types of income, the rapid appreciation of agricultural assets over someone’s lifetime make them a concern for people looking to sell assets in retirement or people inheriting farm or ranch assets.

This provision is particularly relevant for assets such as real estate and other capital asset investments such as stocks, mutual funds and bonds that may have appreciated in value over time.

The tax basis of land is determined by the amount originally paid for it — or its value at the time it was inherited — plus any improvements made to the property by the current owner, minus any depreciation on improvements.

What assets qualify?

Current law not only supports the stepped-up basis for grain, livestock, machinery and land, but also for prepaid assets on hand. At someone’s death, it may be important to begin collecting price data on these items. Sometimes, it is difficult to find this information months (or years) after the fact.

I inherited land (or other assets in the past), and now want to sell. Where do I find the basis?

On inherited property or assets, the fair market value of the property should be documented as of the date of inheritance. Having an appraisal done at the time real estate property is inherited establishes the new or stepped-up basis. For other investment assets, keeping documents, and published market data would assist in establishing a current market value. If a taxpayer cannot prove the basis, the IRS has the right to say it was zero.

For land, if there is no documentation of value at time of inheritance, a reasonable estimation using records such as USDA-NASS Census and Survey land values or other credible sources can be used, although not preferred.

Nebraska is one of the six states that has an inheritance tax. When Nebraskans inherit land or other property, they must pay inheritance taxes to the county where the property is located. The value of assets needs to be equal to what was put on the inheritance tax return.

Read the full article here: https://cap.unl.edu/succession/estate-planning-stepped-tax-basis.

Conclusion
A stepped-up basis can be seen as an ideal opportunity to sell long-held farmland or other assets that have appreciated in value, with minimal to no capital gains tax consequences if the next generation or heirs choose to sell all of part of the inherited property soon after the stepped-up basis is established. The impact of a stepped-up basis on each farmer or rancher depends on specific circumstances. Utilizing an estate planning team that includes professionals such as an attorney, accountant, and financial and/or insurance advisors can help when developing an estate strategy.



Free Farm and Ag Law Clinics Set for September


Free legal and financial clinics are being offered for farmers and ranchers across the state in September. The clinics are one-on-one in-person meetings with an agricultural law attorney and an agricultural financial counselor. These are not group sessions, and they are confidential.

The attorney and financial advisor specialize in legal and financial issues related to farming and ranching, including financial and business planning, transition planning, farm loan programs, debtor/creditor law, debt structure and cash flow, agricultural disaster programs, and other relevant matters. Here is an opportunity to obtain an independent, outside perspective on issues that may be affecting your farm or ranch.

Clinic Dates
    Thursday, Sept. 5, 2024 — Norfolk
    Thursday, Sept. 12, 2024 — Fairbury
    Wednesday, Sept. 18, 2024 — Norfolk
    Thursday, Sept. 19, 2024 — Valentine

To sign up for a free clinic or to get more information, call the Nebraska Farm Hotline at 1-800-464-0258. Funding for this work is provided by the Nebraska Department of Agriculture and Legal Aid of Nebraska.


Terminating a verbal farmland lease in Nebraska

Jessica Groskopf, NE Extension Educator

Some farm leases are not written but are verbal or "handshake" agreements. Because nothing is in writing, the parties may have different recollections of their agreement, making lease disputes more difficult to resolve. The most common legal issue associated with verbal farm leases is how a lease may legally be terminated. For verbal leases in Nebraska, six months advance notice must be given to legally terminate the lease. In contrast, the termination of a written lease is determined by the terms of the written lease. If the lease does not address termination, the lease automatically terminates on the last day of the lease.

Terminating verbal leases

For verbal leases, the Nebraska Supreme Court has ruled that the lease year begins March 1. Notice to a tenant to vacate under a verbal or handshake lease (legally referred to as a "notice to quit") must be given six months in advance of the end of the lease, or no later than September 1. This rule applies regardless of the type of crop planted. Those with winter wheat should consider providing notice before it is time to prepare wheat ground for planting.

For example, for the lease year beginning March 1, 2025, and ending Feb. 28, 2026, notice from the landlord that the lease will be terminated would have to be received by the tenant no later than Sept. 1, 2024. The lease would then expire Feb. 28, 2025, with the new tenant (or new buyer) able to take over the lease March 1, 2025. If, however, the notice to quit were given (or received) after Sept. 1, 2024, the existing tenant would have the lease until Feb. 28, 2026.

Notice should be provided to the tenant for either lease termination or changing lease provisions. A verbal termination notice might be adequate but could be difficult to prove in court if litigation were necessary to enforce the lease termination. It is recommended that the farmland lease be terminated by Registered Mail™.  This means that the person receiving the letter signs for it, providing evidence that the termination notice was received.  The University of Nebraska–Lincoln does not provide example lease termination letters. If you need guidance, consult your attorney.

Pasture Lease Terminations

Handshake or verbal leases are different for pastures. The typical pasture lease is for the five-month grazing season rather than the entire year. The lease is only in effect for that time, so the lease is terminated at the end of the grazing season; however, different lease length arrangements can be made in a written lease, and that would be followed if in effect.

Importance of Good Communication

Regardless of the type of lease — written, verbal, or even multiple year — the landlord should have clear communication with the tenant. By sending a termination notice before September 1, even for written leases, you can avoid any miscommunication or pitfalls.

Written Leases

In all instances, written leases would be preferred over oral or “handshake” leases. Sample leases are available in the Document Library at aglease101.org and can help both parties start thinking about the appropriate lease conditions for their situation before they consult an attorney to draft a lease or review a proposed lease. The Ag Lease 101 site was developed by university extension specialists in the North Central Region but is not a substitute for personal legal advice.



CAP Webinar: Managing Family Members on the Farm

Aug. 29, 2024
12:00 pm – 1:00 pm
With Anastasia Meyer, Agricultural Economist, UNL Center for Agricultural Profitability.

Managing family members on the farm involves clearly defining roles and responsibilities, establishing effective communication strategies, and creating a fair decision-making process. Financial management, succession planning, and balancing family life with business needs are essential for long-term success. Addressing legal considerations, providing opportunities for training, and setting a shared vision help align family goals. Finally, proactive conflict resolution is crucial to maintaining both business operations and healthy family relationships.

Register for the webinar here: https://cap.unl.edu/webinars.  



Register Now for the 2024 Nebraska Water Conference

Where: Nebraska Innovation Campus Conference Center, Lincoln, Nebraska
When: October 9 and 10, 2024

Registration is now open for the 2024 Nebraska Water Conference held in Lincoln, Nebraska, on October 9 and 10. This year’s conference theme is Collaboration and Innovation in Nebraska Water. The conference will highlight successful collaborations and innovations in Nebraska water and discuss future opportunities in water research and management.

Held at the Nebraska Innovation Campus conference center, this two-day event will feature discussions on emerging contaminants, drought preparedness, nutrient management, climate smart practices, nitrate research, water policy, climate water resilience, and modeling. Experts from the state and region will share their work and lead discussions on future opportunities for innovative partnerships.

Registration is open from now until September 27.
    Regular registration (Now until September 13): $400
    Late registration (September 14 to September 27): $450

Registration includes all sessions and meals, as well as the Wednesday evening reception.

Special pricing is available for students and faculty.

For more information about the conference, speakers, and registration, visit go.unl.edu/waterconference.  



UNL to host International Plant Phenotyping Symposium


The University of Nebraska–Lincoln will host a global gathering of scientists, academicians and industry representatives on Oct. 7-11 for the Eighth International Plant Phenotyping Symposium.

The symposium is the premier event for the International Plant Phenotyping Network, an association representing the major plant phenotyping centers worldwide. The centers’ goal is to increase the visibility and impact of plant phenotyping and enable cooperation by fostering communication between stakeholders in academia, industry, government and the general public.

Keynote speakers are experts in plant phenotyping from multiple countries including the United States, Colombia, France and the Netherlands. The Embassy Suites in downtown Lincoln will host the main sessions for the event, whose theme is "Green Horizons: Navigating the Future of Plant Phenotyping."

Nebraska Innovation Campus will host a series of workshops for symposium attendees on Oct. 7 followed by an opening event with hors d’oeuvres and a tour of the Greenhouse Innovation Complex.

Registration is open through Aug. 31. Information on the symposium and registration is at https://www.ipps8.org.

The event aims to facilitate the exchange of knowledge, foster collaboration, and inspire innovation through presentations, an exhibition, networking opportunities and workshops at Nebraska Innovation Campus. Over 250 attendees have already registered to attend.

A diverse range of scientists will participate, including plant biologists, ecologists, engineers, agronomists and computer scientists.

Emerging frontiers in plant phenomics will be among the topics explored, as well as cutting-edge technologies and solutions provided by industry, plus artificial intelligence and data science advancing plant phenotyping methods.

Workshops at Nebraska Innovation Campus will include machine learning for cyber-agricultural systems; root phenotyping; genebank phenotyping; advances in forest and tree phenotyping; global phenotyping research infrastructure; the open source pipeline for drone- and satellite-based high throughput phenotyping applications; and the scope of plant phenotyping within the broader scientific community.

An additional workshop will be phenoACCESS-24: Workshop on Research Computing and Plant Phenotyping, with travel grants provided by the National Science Foundation. To apply for the workshop, please visit https://hcc.unl.edu/phenoaccess-24-workshop-research-computing-and-plant-phenotyping.

Innovation Campus will host two industry workshops, one on multispectral imaging with gravimetric phenotyping, and one on infrastructure needed to meet next-generation research needs.

The conference will conclude on Friday, Oct. 11 with a choice of optional tours, including local museums; a trip to the university’s Eastern Nebraska Research, Extension and Education Center to visit the Spydercam field phenotyping facility; Robbers Cave; and a visit to Li-Cor.



Secretary Naig Announces 11 Grants to Support Iowa Specialty Crop Production


Iowa Secretary of Agriculture Mike Naig announced today that the Iowa Department of Agriculture and Land Stewardship has awarded more than $368,000 in grants to help grow demand for Iowa’s specialty crops. The funding will be distributed to support 11 projects that raise awareness about, drive demand for, or create new markets benefiting Iowa’s specialty crops. The grant dollars are made available through a partnership with the United States Department of Agriculture (USDA) and are authorized as part of the Farm Bill.

“Specialty Crop Block Grants are instrumental in helping to develop, diversify and expand markets for specialty crops within Iowa, all of which benefits Iowa farmers and the communities they call home,” said Iowa Secretary of Agriculture Mike Naig. “As we build Choose Iowa, the state’s signature brand for Iowa grown, Iowa raised, and Iowa made products, consumers will ultimately benefit from the availability of more locally grown food and ag products which these grants help to enable.”

The specialty crop block grants will be awarded to the following organizations to assist with the following initiatives:

American Aronia Berry Association
Researching the effects of renewal pruning on aronia berry plant growth, physiology, fruit quality and yield.

Iowa Ag Literacy Foundation
Read Across Iowa with specialty crops.

Iowa State University
Studying the valorization of grape stems.

Lutheran Services of Iowa
Increasing culturally specific crops through greenhouse production education.

Iowa Wine Growers Association
Assisting with implementation of the Iowa Specialty Producers Conference.

Iowa State University
Enhancing nutritional monitoring of Iowa specialty fruit and nut crops.

Iowa State University
Assessing next-generation apple rootstocks and cultivars for Iowa.

Iowa Valley Resource Conservation and Development
Deepening no-till vegetable production in eastern Iowa.

Iowa State University
Enhancing grapevine health in Iowa through pathogen identification including by vineyard surveys and subsequent management options.

Practical Farmers of Iowa
Providing for farmer-led specialty crops variety trials.

Choose Iowa
Consumer education resources for Iowa horticulture and nursery crops, including floriculture.



NPPC’s Zieba Reappointed to USDA Trade Advisory Committee

 
National Pork Producers Council Vice President of Government Affairs Maria C. Zieba was reappointed to the U.S. Department of Agriculture’s Technical Advisory Committee for Trade in Animals and Animal Products. USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai announced the appointment and reappointment of 55 members to seven advisory committees.
 
The advisory panels provide technical advice and guidance to USDA and the Office of the U.S. Trade Representative (USTR) about specific commodities and products.
 
Zieba first was appointed to the Agricultural Technical Advisory Committee for Trade in Animal and Animal Products in July 2020, along with then-NPPC President David Herring, by Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer.
 
Zieba’s presence on the advisory committee gives U.S. pork producers another voice on trade policy issues and allows the U.S. pork industry’s perspective to be considered when USDA and USTR negotiate trade deals.



New Teat and Udder research EPDs and report released by the American Angus Association and Angus Genetics Inc.


The American Angus Association® and Angus Genetics Inc. (AGI®) released two new research expected progeny differences (rEPDs) on Aug. 22. The rEPDs characterize teat size and udder suspension traits and are based on phenotypic data collected by Association members, pedigrees and genotypes in a single-step genetic evaluation model.

Good udder structure plays an important role in beef production; contributing to calf survival, calf growth and cow longevity. Teat size (TEAT) and udder suspension (UDDR) rEPDs expand the suite of selection tools available to Angus breeders to improve maternal function and the productivity of their herds.  

“We know these are two traits of interest to the membership and are excited to be releasing the research EPDs after a multi-year research project that would not be possible without member data,” said Esther Tarpoff, director of performance programs for the Association. “Members have quickly embraced collecting these phenotypes, as evidenced by the number of records for each trait used to build the research EPDs.”

More than 148,000 phenotypic records for each trait were collected from 87,000 cows to contribute to the dataset for the rEPDs, with more to be added each calving season. The records are collected by members within 24 hours of a calving event. Females are given an individual score for both teat size and udder suspension using scales from 1 to 9. Detailed scoring guides can be found on angus.org.

“Over the past several years, we have been focused on validating the Angus breed’s impact as the matriarch of the US beef industry, as it has been historically known as,” said Kelli Retallick-Riley, president of AGI. “From an AGI perspective, it means objectively characterizing maternal traits of economic importance, so the users of Angus genetics have the selection tools needed to make genetic change.”

Submitted scores range from 1 to 9, representing the entire scoring scale. Analysis of the nearly 300,000 records showed overall good udder structure among reported Angus cows. The average score was 6.6 for both traits indicating intermediate to small teats and intermediate to tight udders. Additional results of the TEAT and UDDR research are available on angus.org in the full report.

“We know the pace of genetic change is moving faster than ever with the frequent changeover of sires in many seedstock operations,” Retallick-Riley said. “In some cases, young bulls are being replaced before most of their daughters are in their second year of production. Because of that, maternal traits like udder conformation become even more important to ensure we are promoting sound breeding decisions.”

The release of TEAT and UDDR follows that of the Functional Longevity (FL) rEPD, which measures the ability of a cow to produce a calf year after year. The three rEPDs are currently available to members that have been a part of early phenotypic data collection for the respective traits, allowing rEPDs to come to fruition. A list of AI sires for each of the rEPDs is available to members on the corresponding research pages on angus.org.  

The three rEPDS are anticipated to be released as weekly production EPDs during the annual evaluation updates in late spring of 2025. Research on how these three new traits should be incorporated into Maternal Weaned Calf Value Index ($M) is currently ongoing with potential updates to the index likely to be made during the spring update.




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