TheFirstFurrow

Monday, April 2, 2018 A Closer Look at Taxes: 5 Questions with AFBF’s Pat Wolff

April is here, and with it comes warmer weather, spring break vacations, . . . and taxes. Yes, we hate to bring it up but Tax Day is just around the corner — April 17th to be exact — so we thought we’d look a little closer at some of the finer points of the tax reform law that Congress passed a few months ago. We’ve fired a handful of questions to Pat Wolff, Senior Director of Congressional Relations for American Farm Bureau Federation, and she’s given us the inside scoop on what’s new with taxes and what’s on the horizon.

Question #1: The Tax Cuts and Jobs Act is a comprehensive law, making changes to the nation’s tax policies that impact practically every individual and business in the US. Which provisions do you think are most important for North Carolina farmers and how does this reform package help them going forward?

The cornerstone of tax reform is lower tax rates for individuals and businesses. For farmers that means being about to keep more of their money to reinvest in their operations. Farms that pass profits through to their owners for taxation (sole-proprietorships, partnerships and under Subchapter S) will be taxed from zero to 37 percent with that top rate kicking in at $600,000 of income. That’s compared to the old law where the top rate of 39 percent used to start when income exceeded $470,000. The top corporate tax rate permanently shrinks from 35 percent to 21 percent.

Expanded deductions will allow farmers to write off more of their expenses immediately. This will make it easier to reduce taxable income by matching income with offsetting expenses. Section 179 small business expensing is permanently doubled to $1 million. There are no limits on bonus depreciation. And almost all farm businesses get to keep using cash accounting and deduct their interest expenses and property taxes.

Question #2: The reduction in the corporate tax rate has gotten a lot of attention, but the majority of North Carolina farms are family-owned sole proprietorships and partnerships. Are there any provisions in the new tax law that will help family-owned sole proprietorships and partnerships?

Tax reform provides a new business deduction that is available only to sole-proprietorships, partnerships and those that pay taxes under Subchapter S. Individuals operating pass-through businesses will be able to take a tax deduction equal to 20 percent of net farm income with limitations if taxable income exceeds $315,000 for a couple.

Question #3: Considering that most farms have little liquidity and their capital is usually tied up in the land and farm equipment, why was it important that Congress expand the estate tax exemption level?
Tuesday, March 13, 2018 Stepping Up for Agriculture

The following commentary is by North Carolina Farm Bureau President Larry Wooten, first published in the Spring 2018 issue of NC Field and Family.

Farm Bureau takes a stand on important issues

For more than 80 years, our Farm Bureau brand has served as a trusted voice on issues impacting the agriculture community. We must remain vigilant concerning the issues and challenges ahead of us in 2018.

Legislatively, we have a strong working relationship with the North Carolina General Assembly and the Governor’s office. We might not always agree on every issue, but I can tell you, they always want to hear from us. The same is true for our U.S. congressional members. We have great relationships with all 13 congressional offices and our 2 senatorial offices. This is a testimony to the strength of this organization and our grassroots leadership.

As the largest and most influential voice for rural North Carolina, we must not be afraid to take big, bold, and active stands on the controversial issues impacting our members. We must be prepared to stand alone if necessary. Our membership and the agriculture community expect Farm Bureau to do what is in the best interests of our farmers, regardless of the consequences.

Wednesday, January 10, 2018 Principles For Progress

The following commentary is by North Carolina Farm Bureau President Larry Wooten, first published in the Winter 2017-18 issue of NC Field and Family.

Mergers showcase the need for competitive choice

Progress has been a guiding principle of farming since before North Carolina’s first Commissioner of Agriculture Leonidas L. Polk established Progressive Farmer magazine in 1887, after serving in office.

With each new season of the year, it seems there is also a huge new merger or acquisition being announced in the name of progress. With the dizzying pace of consolidation in agribusiness, it seems appropriate to consider both sides of this double-edged sword. Is consolidation beneficial to farmers and consumers? Or do these legal strategies lessen competition to the point where too many options vanish?

According to industry analysts, these deals may result in increased efficiencies, crop yields and time savings, so we’re typically told this merger or that acquisition is ultimately for the benefit of farmers and consumers. Yet, is consolidation the only way, and the best way, to achieve progress?

What makes our economy prosperous? Is the answer independent, strong small businesses? Or, is it the consolidation of large corporations? Like most things in life, the truth is usually somewhere in the middle. Ideally, we’d like everyone to be prosperous. But one thing is certain: Farmers and consumers need choice!

Wednesday, November 29, 2017 NCFB’s 82nd Annual Convention

In a few days, North Carolina Farm Bureau members and voting delegates will travel to Greensboro, NC for the organization’s 82nd Annual Convention. The event is a celebration of the year’s work: growing the membership, advocating for farmers and rural families, telling the story of North Carolina agriculture, and investing in the future of our state. But the convention is also the culmination of the year’s policy development process — a process that, for more than 80 years, has exemplified the true grassroots spirit of Farm Bureau.

We’ve discussed Policy Review Day in the past, and have talked about how that event kicks off the policy development process.

During the fall, those policy resolutions go back to all 100 counties and are reviewed, debated, and in some cases modified. This involves countless hours of input from thousands of farmers across the state. All of those county recommendations came together earlier this week and were reviewed again by a 100-person committee comprised of farmers.

At Annual Convention, those resolutions will again be discussed by a voting delegate body of more than 600 farmer members. The process is thorough, comprehensive, and is a wonderful example of how North Carolina Farm Bureau has remained true to its grassroots foundations.

As always, we look forward to next week’s Annual Convention, and we are proud of what it means for this organization and North Carolina agriculture.

READ: Eighty Years of Service for North Carolina Farm Bureau

Wednesday, November 22, 2017 Average Thanksgiving Dinner Cost Decreases

From American Farm Bureau Newsroom

The American Farm Bureau Federation’s Thanksgiving Dinner Price Survey shows diners will enjoy a slightly more affordable Thanksgiving dinner this year. Micheal Clements has more.

Clements: The 32nd annual informal Thanksgiving Dinner Price Survey shows consumers continue to enjoy an affordable food supply as this year’s Thanksgiving dinner is the most affordable in five years. The average cost for 10 for a classic Thanksgiving Dinner decreased less than two percent, remaining under $5 per-person, according to AFBF market intelligence director John Newton.

Newton: The price of Thanksgiving Dinner is $49.12, that’s down 75 cents, or one and a half percent from last year and shows that the Thanksgiving dinner is down for the second consecutive year in a row and remains below five dollars per-person.

Clements: The decline was driven by lower retail turkey prices, along with lower prices for milk and rolls. The average cost of turkey this year is $22.38 for the whole bird.

Newton: Wholesale turkey prices are at their lowest level since 2013, and given that the turkey represents nearly 50 percent of the basket’s total, it’s the biggest factor driving the price decline. Turkey prices came this year in at $1.40 per-pound, that’s down two cents from what we saw last year.

Clements: Meanwhile, the supply of pumpkins for processing for pumpkin pie has rebounded from a couple of years ago.

Newton: The supply of pumpkins this year should be more than adequate. We’ve had favorable growing conditions for two consecutive years in a row in Illinois, where the majority of pumpkins are produced.

Clements: Full survey results are available at www.fb.org. Micheal Clements, Washington.

2016 Thanksgiving Dinner Price Survey: Thanksgiving Dinner Ticks Down to Less Than $5 Per Person

Wednesday, November 15, 2017 Announcing the North Carolina Farm Bureau Rural Entrepreneur of the Year Finalists

Agriculture is the foundation of North Carolina’s rural economies, and plays a key role in strengthening and supporting our state’s rural communities. But another vital component of rural economic development is rural entrepreneurship – the innovators and creators who build upon the entrepreneurial spirit of agriculture by adding value, developing solutions, and investing in the communities they love.

North Carolina’s growing population is a fertile market for farm direct agricultural consumption. Farmers engaging in on-farm entrepreneurship benefit the state and their neighbors through stewardship of natural resources, creating local economic value, fostering a sense of community and preserving North Carolina’s cultural heritage. Among the types of businesses North Carolina’s rural and farm community develop are experiential businesses such as agritourism, product-based businesses such as farm made foods, value-added products, and crafts and service businesses targeted to the public or other farmers.

North Carolina Farm Bureau is proud to recognize our state’s agriculture and food innovation. This year, for the first time, North Carolina Farm Bureau members will select the North Carolina Farm Bureau Rural Entrepreneur of the Year. From a strong field of 44 applicants, three finalists have been selected based on their impact in rural North Carolina, their impact to the agricultural community, and for the innovation and creativity of their business ideas. The finalists will attend NCFB’s Annual Convention and pitch their businesses to NCFB volunteer leaders, who will vote to decide this year’s winner. The three finalists are:

Devine Farms is an important member of the Catawba County agriculture community. When judges reviewed their application they were impressed with how the Devines have worked with their community to partner with local schools, businesses and non-profits. Judges were particularly impressed with Devine Farms’ purpose to educate individuals about “agriculture, history and how food is produced.” The judges noted, “Their focus on agritourism is a model for other farms attempting to do similar projects.”

 

Fonta Flora Brewery is a fixture in the revival of downtown Morganton. The judges reviewing their application were impressed with their positive impact on jobs in the community. They were also impressed with their dedication to sourcing local ingredients from local farms. Judges also noted that the purchase of a local farm will enable the brewery to produce some of their own ingredients and will further increase the economic impact of the brewery through additional jobs.

 

Four Prongs Tea and Herb located in Watauga County is a value added medicinal herb business. Ginseng is a heritage herb product from Western North Carolina. While the market for ginseng roots is well established, the tops have been considered a waste product—no one uses them, that is until now by Four Prongs Tea and Herb. Judges reviewing their application were impressed by the knowledge base of company founders and the potential to add sales of tea made from ginseng leaves to an already established market for ginseng roots. Judges noted that “Their idea capitalizes on a sustainable niche.”

 

North Carolina Farm Bureau is proud of all this year’s applicants and we wish the best of luck to Devine Farms, Fonta Flora Brewery, and Four Prongs Tea and Herb as they compete for this year’s award. We’re excited to see what you’ll think of next!

Wednesday, November 8, 2017 18 Factoids About Turkeys

You can fry it, roast it, smoke it, cook it upside-down or even in a bag. But regardless of how you fix it, the centerpiece of most dinner tables this Thanksgiving will be a turkey. We were planning to give a brief history lesson of how turkey became the America’s Thanksgiving staple but apparently it is a matter of much debate, so we’ll steer clear. However, we will take the opportunity to show our appreciation to the hardworking farmers that provide this delicious Thanksgiving centerpiece every year by highlighting the importance of this commodity to our state with some great facts. So this year while shopping for that perfect turkey be sure to think about our turkey producers and maybe share a few of these fun facts around the table.

18 factoids about turkeys

  1. North Carolina ranks second in the nation in turkey production
  2. In 2016, more than 1.2 billion pounds of turkey were produced in NC
  3. Turkey, NC (near Clinton) is one of only three towns in the U.S. named Turkey
  4. 33.5 million turkeys were produced last year in NC
  5. The most turkeys ever produced in NC was in 1992 when farmers raised 62 million turkeys
  6. Last year, the value of turkey production was nearly $1 billion
  7. In 2016, the average American consumed about 16.7 pounds of turkey
  8. Headquartered in Garner, Butterball is the largest producer of turkey products in the U.S.
  9. The male turkey is called a tom and the female turkey is called a hen
  10. The “Turkey Trot” (ballroom dance) was actually named for the short, jerky steps that turkeys take
  11. Turkeys can see in color but not well at night
  12. Turkeys are related to pheasants and lived almost ten million years ago
  13. Turkey consumption more than doubled since 1970
  14. In 2015, turkey was the #4 protein choice for American consumers
  15. Almost 70 percent of U.S. turkey exports go to Mexico
  16. Turkey eggs hatch in 28 days
  17. Turkey is low in fat and has more protein than chicken or beef
  18. A 15 pound turkey usually has about 70 percent white meat and 30 percent dark meat
Wednesday, November 1, 2017 2017 Legislative Long Session Recap

The NC General Assembly adjourned (again) a couple weeks ago, and with November officially upon us it’s probably as good a time as any to put a bow on this year’s legislative session. Overall, it was a good session for North Carolina agriculture, with the General Assembly enacting several important measures to help farmers. Today, we want to give you a quick overview of a few key legislative actions.