News Update
April 16, 2012
Rep. Goodlatte earns Farm Bureau "Golden Plow" Award
The American Farm Bureau Federation (AFBF) has honored Rep. Bob Goodlatte (R-Va.) with its "Golden Plow" award. The award is the highest recognition the organization bestows on members of Congress.
Goodlatte was presented the award today for his long-standing support of America's farmers and ranchers by AFBF President Bob Stallman and Virginia Farm Bureau President Wayne Pryor. The award was presented during an event in Harrisonburg, Va.
"Congressman Goodlatte is a consistent, strong budget conservative and has set a solid example of the courage required to rein in government spending — which all of us as taxpayers applaud," Stallman said.
"Congressman Goodlatte is a vigorous defender of private property rights, both real and intellectual, and he continues to lead the fight against regulatory overreach. He is a champion for private forestry and has worked tirelessly to ensure farmers of all sizes have access to the conservation programs that assist them in maximizing their farms' economic returns while contributing measurable results toward enhancing the environment."
The Virginia Farm Bureau nominated Goodlatte for the award. According to Stallman, since Goodlatte was first elected in 1992 to represent Virginia's 6th Congressional District, he has "applied his common sense, expertise and determination to finding solutions to the challenges facing American agriculture."
Since coming to Congress, Goodlatte has served on the House Agriculture Committee and also serves on the Judiciary and Education & Workforce committees — assignments where he has worked on a number of issues facing farmers and ranchers.
Stallman said that Goodlatte's consistent leadership in Congress is highlighted by his tenure as House Agriculture Committee Chairman, beginning in 2003. While House rules impose term limits on chairs, Stallman said agriculture continues to benefit from Goodlatte's leadership as he closely works as the committee's vice chairman with current House Ag Chairman Frank Lucas (R-Okla.).
"We are pleased to honor Congressman Goodlatte with AFBF's highest legislative award," Stallman said. "As he has demonstrated, Congressman Goodlatte is a true champion of America's farmers and ranchers."
AFBF's Golden Plow award recognizes members of Congress — regardless of party affiliation — for distinguished agricultural leadership and support of Farm Bureau policies. Recipients are chosen based on having a philosophy or record that demonstrates a commitment to: the private enterprise system; sound agricultural policies supported by Farm Bureau; fiscal conservatism; and reduced federal regulations on businesses and individuals.
Farm Women Tailor Plans to Transform Farms
to Next Generation
It didn't matter the age, or if they were working into the business or setting the stage for the next generation to step forward, they all had a common goal — a successful transition. Farming is a business and a way of life. You don't just retire! The farm business and family life are all tangled up in one.
Four major plans were developed and intertwined to formulate a transition plan: succession, estate, business and retirement plans.
A succession plan is the blueprint for transferring knowledge, skills, labor, management, control and ownership between generations. The next generation may have production skills, learned from years of working on the farm, but management skills need to be developed. This plan looks at how to successfully — maybe gradually — hand over the reins of the farm business.
Reviewing the estate plan allowed each participant to update their list of assets, determine how each was owned and begin the discussion of how these assets can be transferred to the next generation. Proper planning allows assets to transfer, either by sale, gift or inheritance, in a manner that meets the goals of the family.
Updating the business plan allowed the women to develop a road map to business growth. They first looked at profitability and feasibility — can this business support another family? Then the focus turned to risk management.
Participants of the Managing for Today and Tomorrow program in January 2012 reviewed their retirement plans to determine the goals they had for this stage of life. Would they continue to work on the farm? Would they turn over the leadership and spend time traveling? How much money would they need to fund their retirement and would this come from non-farm investments or from the farm? As answers to these questions were contemplated, retirement plans took shape.
Participants left the program with a greater understanding on how to build a good transition plan for their farm. Although we know it is not the goal for every farm to transfer to the next generation, we also know that the lack of succession planning is the reason only one-third of first generation businesses survived to the second generation, according to the Small Business Association. Managing for Today and Tomorrow provides tools to allow farms to meet their goals and to keep agriculture strong in our communities.
Managing for Today and Tomorrow, succession, business estate and retirement planning for farm and ranch women is an Annie's Project II series. Information on Managing for Today and Tomorrow is available through Roger Betz, Michigan State University (MSU) Extension senior farm management educator, at betz@msu.edu. For more information on other Annie's Project educational opportunities, contact Warren Schauer, MSU Extension farm management educator, at schaurer@anr.msu.edu.
ASA Joins Ag Community in Urging Estate Tax Action
Before End of Year
The American Soybean Association (ASA) joined counterparts from the commodity, dairy, livestock and specialty crop industries in urging the House and Senate to enact legislation before the end of the year to provide permanent and meaningful estate tax relief. ASA supports permanently keeping the current exemption at $5 million per person and retaining the top rate of 35%. ASA believes it is also imperative that the permanent estate tax law index the exemption to inflation, provide for spousal transfers, and include the stepped-up basis.
If Congress does not take action on ASA's recommendations before the end of the year, the exemption will drop to $1 million and the top tax rate above the exclusion amount will increase to 55%.
"If estate taxes are allowed to be reinstated at the beginning of 2013 with only a $1 million exemption and top rate of 55%, the negative impact on our industry will be significant," stated the groups. "The 2013 change to the estate tax law does a disservice to agriculture because we are a land-based, capital-intensive industry with few options for paying estate taxes when they come due. The current state of our economy, coupled with the uncertain nature of estate tax liabilities, makes it difficult for family-owned farms and ranches to make sound business decisions."
In letters to both chambers Friday, ASA encouraged Congress to show its support for "permanent and meaningful estate tax relief" with the cosponsorship of bills reforming the estate tax. In the House, Rep. Kevin Brady (R-Texas) has introduced the Death Tax Repeal Permanency Act (H.R. 1259), while Sen. John Thune (R-S.D.) has advanced the counterpart Senate bill of the same name (S. 2242).
"This action will strengthen the business climate for farm and ranch families while ensuring agricultural businesses can be passed to future generations," continued the groups. "Allowing estate taxes to be reinstated without an exemption and rate that protects family farms puts many operations at risk and threatens succession to the next generation of farmers."
Senator Addresses Agriculture, Economic Challenges
U.S. Senator Roy Blunt, (R-Mo.), shared his thoughts on today's political environment with St. Louis Agribusiness Club members and guests at a lunch, co-sponsored by the National Corn Growers Association (NCGA). NCGA CEO Rick Tolman was on hand to thank the senator for his work on behalf of U.S. agriculture, and draw attention to the lengthy list of unresolved issues that concern farmers.
"When big decisions are being made, government stands still," said Blunt "We are going to have to decide who we as Americans want to be. Do we want to follow Europe's path and have government outgrow our economy, or do we want a government we can afford?"
As ranking member of the Appropriations Committee's Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, Blunt played a vital role in writing and passing the 2012 agriculture appropriations bill. The senator conveyed his pride in being able to maintain vital support for research and extension at land-grant universities, capacity-building grants for non-land grant colleges of agriculture, and competitive funding under the USDA Agriculture and Food Research Initiative.
When asked if he thought a farm bill could be completed this year, Blunt said he thought some extension of the current bill was more likely. "Although something could be accomplished in the Senate that we could live with, that won't happen in the House," Blunt said.
Because of his background as a history teacher and university president, Blunt brings a unique perspective to his work in public service. He commented on government's lack of progress these past two years, and pointed out similar junctures during the administrations of Thomas Jefferson, Andrew Jackson, Abraham Lincoln, both Roosevelts, Lyndon Johnson and Ronald Reagan. He said he believes that we will have another year of gridlock before government will be back to business and make the necessary hard decisions it is now avoiding.
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