SECTION 179 AND BONUS DEPRECIATION

IRS Section 179 Deadline Approaches
“Farmers have gotten accustomed to high levels of Section 179 ($500,000 for the last few years) and at least 50% bonus depreciation since 2008,” says Paul Neiffer, a certified public accountant and business advisor for farmers and agribusiness processors. “For 2013, the levels are $500,000 for Section 179 and 50% bonus, however, for 2014, Section 179 is scheduled to drop to about $25,000 and there will be no bonus depreciation.”

Neiffer’s comments continue:

In a more normal Congress situation there would be a good chance of an increase in Section 179 and perhaps a change to bonus depreciation by the end of this year. However, this is not a normal time in Washington DC and the fiasco with the Health Exchange rollout may make it worse. I would not count on any changes to Section 179 and bonus depreciation for 2014 until after the Mid-term elections.

This means that farmers need to determine their equipment/tax savings plans assuming the lower levels will stay in place. If you are having a very good year and NEED to upgrade or get new equipment, I would certainly recommend getting it this year. If you have started the construction of new grain bins or other larger projects, make sure those are finished by year-end. If done by December 31, you get to deduct an immediate 50%; if done in January, you may only get to deduct 10% of less.

Remember that Section 179 is allowed for new AND used equipment, while bonus is only on NEW equipment. You cannot take Section 179 on trade-in basis of old equipment, but can use it for bonus. Section 179 applies to farm equipment and single purpose farm structures and land improvements. Bonus applies to all farm assets including buildings.

Some farmers who have financed their equipment may find their tax bill going up since they now have income with no tax depreciation to help offset it and still having to make equipment debt payments. If farm incomes start to drop this may crimp their financial situation. If this applies to you, take steps now to mitigate it.
2016-05-31T19:43:10-07:00November 11th, 2013|

CALIFORNIA AG TODAY HONORS VETERANS


To All Our Farmer Vets,

We Honor You on Veterans Day!

The Farmer Veteran Coalition (FVC) is a not-for-profit based in Davis, CA, to mobilize veterans to feed America. FVC provides meaningful and healing vocations to Iraq and Afghanistan veterans, while also rebuilding our population of small farmers for food security in America.

FVC connects military veterans with opportunities for employment, training, job opportunities, an active support network of mentors, a resource center, and an empowering women’s program. Strategic grants to launch farm/ranch operations have been available through the Bob Woodruff Fellowship Fund for several years now.


“We believe that veterans possess the unique skills and character needed to strengthen rural communities and create sustainable food systems for all. We believe that food production offers purpose, opportunity, and physical and psychological benefits,” the organization posted on their website.

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Farm Credit System is a series of farmer-owned lending associations that handle about half of our nation’s agriculture. Regional associations work with FVC to help farmer veterans with financial literacy, business planning, and when qualified, loan acquisitions. 

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A growing partnership between the Farm Credit Council and Farmer Veteran Coalition aims to include and engage every Farm Credit institution to help introduce veterans and military communities to the business opportunities agriculture offers. Their guide provides a simple framework outlining the many different ways to participate in this new partnership.

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“Ground Operations” is a social-action 
campaign featuring a documentary film and 
companion book, and a national tour of 
film/food/farm events to ultimately influence
public policy to support the beginning farmers 
and ranchers our nation so urgently needs. 
“GROUND OPERATIONS: Battlefields to Farmfields” is a film about the daunting transition our returning warriors face when their return to civilian life is marked by unemployment, prescription drug addiction and astronomical suicide rates. They need a new mission. Simultaneously, as half of American farmers will soon retire, and the USDA is calling for one million new farmers to fill the gap, “Agriculture’s problem is the veterans’ solution.”
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Some of California’s Resources include:
Northcutt Ranch in Los Corners (Napa Valley), CA, a veteran owned and operated ranch exploring viable options in sustainability, organic farming, livestock, and a family-oriented ranching lifestyle.
California: Veterans’ Sustainable Agriculture Training (VSAT) at Archi’s Acres in Valley Center, CA which trains transitioning service men and women to be successful in the sustainable agriculture industry.
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2016-05-31T19:43:10-07:00November 11th, 2013|

Olive Crop Big, Labor Problems in Fresh/ Cannery Market

Fresh Olive Crop Is Big,

Despite Labor Shortages

By Patrick Cavanaugh and Laurie Greene

In exclusive interviews TODAY, CaliforniaAgToday focused on the California olive industry.

While fresh table olives are still being harvested in Northern California the harvest is finally completed elsewhere in the state. “Most importantly the industry is trying to get the rest of the big crop off as fast as it can, before any rain comes, on top of labor shortages,” said Alex Ott, Executive Director of the California Olive Committee, based in Fresno. 

“The labor has been very short. Instead of completing a job in one week, it was taking two weeks,” Ott said. “Labor is our top concern as the fresh olive industry competes with everyone else relying on hand harvests.

Labor has been such a persistent problem for the olive industry, a lot of research is focused on mechanical harvest methods such as a wrap around system similar to prune and pistachio harvesters. “This is definitely the way of the future and all new orchards are being planted and pruned properly so that they can adapt to mechanical system,” said Ott.

Older Trees Not Adapted to Mechanical Harvest

“The problem is what do you do with those orchards that have been there for 60 years. And if a grower were to rip those out, why would he go with another hand-labor intensive crop,” asked Ott. “I would plant almonds or walnuts which are not only mechanically harvested, but the rate of return is greater than olives.”

That’s the dilemma of the California olive industry is in. At what point does the industry covert, while also keeping in mind the lower return growers are getting for their black or green ripe olives. “Does it make more sense for growers to go with another crop that doesn’t have such issues,” asked Ott.

Production this year is predicted to be well over 80,000 tons. Last year’s production of 78,740 tons. In 2011 the production was 27,012 tons and in 2010 production was 164,984 tons. “It’s an alternate bearing crop and was a little surprising that we are up this year, following last year’s on crop,” Ott said.

“What is happening here is that growers have initiated improved pruning techniques, which is causing more consistency in crops from year to year. This is good for the olive industry, instead of wild swings each year,” Ott said.

Olive Oil Industry is Up Too

Patricia Darragh, Executive Director of the California Olive Oil Council, reported that estimated California Olive Oil production for the 2013-2014 winter season is 3.0 million gallons, compared to 2.4 last year, double the 1.2 million the prior year, with fantastic quality. Olive is the fastest growing specialty crop in the state.

Versus last year, third-quarter California Extra Virgin Olive Oil represents 20.5% growth of the overall third quarter 41.6% growth nationally. California growth is ascribed to increased consumer demand, excellent health features, ideal climate, and plants attributes of drought-resistance, dry-farmable and indeterminable tree life. California produces 99% of the product nationally, mostly in the Sacramento Valley, with Central Valley a close second.

This year saw a resurgence of the olive fruit fly, attributed to typically non-treated landscape olive trees.

 “The most widely used olive in California, among its 100 varieties, is Arbequina, originally from Spain,” said Darragh, “and is a lovely mild, fruity, grassy variety.”

“In contrast with The European olive oil industry, the California industry grows many olive varieties and is creative in its blending, and that is the fun,” Darragh said.

Specializing in marketing and trade, the Council collaborates with the UC Davis Olive Center, which focuses on research and science.

The Council is proud of its Sensory Panel, established in 1998, the first in North America.

  

2016-05-31T19:43:10-07:00November 9th, 2013|

Spring Ag Outlook for Farm Managers and Appraisers

Outlook 2014 Conference
Set for March 20, 2014 in Fresno

California Agriculture – Thriving Through Change is the theme of Outlook 2014, formerly known as the Spring Ag Outlook Conference, presented by the California Chapter of the American Society of Farm Managers and Rural Appraisers (CalASFMRA).

 

The 2014 conference will be held on March 20th at the Radisson Hotel and Conference Center in Fresno and will include distribution of the widely acclaimed Trends in Agricultural Land and Lease Values, the annual publication providing land value information and agricultural content for California and Nevada.

The Outlook 2014 program agenda will provide conference attendees with an update on select California agricultural commodities as well as presenting speakers on key issues facing the industry.

According to Conference Chair, Mark Peterson, ARA, AFM, AAC, President of Kefa Capital, Inc., “The Outlook conference is looked to each year as the one place where attendees can gather a wealth of information in a single day. From commodity updates, to land value information, to leaders in the industry discussing timely issues, this meeting has become a ‘must’ for hundreds of agribusiness professionals. We are excited to bring the conference to Fresno for 2014 and feel that the central location will allow even more people to attend.”

Outlook 2014 is open to the public and pre-registration is required. Special group rates will be available for conference attendees at the Radisson Hotel, 2233 Ventura Street, Fresno, (559) 268-1000. Complete details and registration information will be available soon at www.calasfmra.com or from CalASFMRA at (209) 368-3672.

2016-05-31T19:43:10-07:00November 9th, 2013|

NEW TECHNOLOGY FOR CALIFORNIA VITICULTURE INDUSTRY

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Thermal Plant Treatment Introduced to Viticulture Industry

With Promising Results


By Laurie Greene, Associate Editor


Thermal Plant Treatment (TPT), a unique patented technology, uses heated air to help reduce pesticide needs and has also shown surprising benefits with higher fruit set, when applied at blossom; thicker skin development on fruit; reduced fungal development by drying crops after rain storms; and improved yields.


Since the inception of the technology in 2001, the basic treatment protocol onto crops has consisted of a tractor-pulled machine moving at 3-4 MPH (5-6KPH), applying 100ºC (215F) heated air, at a wind velocity of 85-100 (135-160 MPH).

 
The machine, built exclusively for AgroThermal Systems by American Grape Harvesters of Fresno, California, is engineered to configure the treatment properly onto each crop.


Wine, developed from thermally treated wine grapes from the Napa Valley, Sonoma and Central Oregon is being compared with non treated wine grapes from the same vineyards.


Master of Wine, Philip Goodband
Agrothermal CEO Marty Fischer said TPT’s Master of Wine, Philip Goodband uses his expert tasting ability and knowledge of Enology to differentiate and accurately explain the differences between the test and control wines on a blind basis. “Having a world leading Master of Wine as part of our team” said Fischer, “adds expert validation to the differences we are seeing TPT create in wine quality.” Testing will continue, adding in blueberries, cane berries, pears and cherries.


Lazo TPC Global, Inc., doing business as AgroThermal Systems, is a California corporation that holds patents for Thermal Pest Control and has patents pending on other aspects of Thermal technology under the umbrella of Thermal Plant Treatment. 

2016-05-31T19:43:10-07:00November 8th, 2013|

Date Season Finishing up After Weather Issues

California’s Bard Valley Finishes Up Date Season


 Weather Challenges Hurt Quality
By Patrick Cavanaugh, Editor

Bard Valley fig growers in the southeast part of the state, where most of the California dates are produced is wrapping up the season, however it followed challenging summer rains, which set up a process where some of the dates would start to ferment, or sour, and could not be harvested.

“This week we are getting the bags down and cutting the fruit arms in the trees, and cleaning up equipment, ” said Ron Hill with Royal Medjool Date Gardens, Winter Haven. “ The last dates were harvested last week and we are trimming up our young trees and getting ready for next season.”

Overall, production was up but there was some souring. Hill noted that bags are put over the fruit branches to protect the dates from windstorms and so that any dates that drop off will stay in the bag. “You always have the heat, along with sugar in the dates and when the rain came, it raised the humidity.

Often times there is 10 pounds of fruit which fall in the bag, and we had about 60 percent of that fruit that was probably bad,” said Hill. “Overall, the industry lost about 20 percent of production.”

Hill noted that the Coachella date production area had more problems.

Hill noted that when the crews were taking down the bags they were able to harvest some late maturing dates on the fruiting branches. We were able to get another five or 10 pounds per tree, which helped in overall volume.

Hill noted that the date industry is able to name their own price just as long as they are sensible. “We have a big chunk of the industry and we set the price before we even harvest,” said Hill. “If the price needs to be adjusted because things are moving slow then the industry works with the buyers.

Total date production in the Bard Valley was 16 to 18 million pounds this year, up a bit from last year.

2016-05-31T19:43:10-07:00November 8th, 2013|

Small Farm Conference March 9-11 Rohnert Park

California Small Farm Conference

Attendance Scholarships Available!

APPLICATION DEADLINE:  December 6, 2013

CONFERENCE: March 9-11, 2014

The California Small Farm Conference is a unique opportunity for small-acreage farmers and ranchers to get a leg up – and you might even qualify for a scholarship to attend. Small farmers and ranchers, student farmer/ranchers, farmer/rancher employees and farmer market managers are eligible to apply for scholarships to attend the conference.

This year’s California Small Farm Conference will be held at the Doubletree Hotel in Rohnert Park, California, on March 9 – 11, 2014. It’s a tremendous opportunity to network with other farmers, visit innovative farms and markets in the Sonoma/Marin region, and learn valuable lessons about on-farm practices, marketing opportunities and other ways to boost your operation.

Scholarships are awarded based on a number of criteria including farm and household income.  Scholarship awards include registration to the three-day conference, all workshops and networking sessions, conference meals, and a Sunday Field Course at a discounted rate of $25.  Lodging and travel costs are offered depending upon the distance traveled to Rohnert Park, California.

Applications:

▪   Download the online application at: http://www.californiafarmconference.com/index.php/attend/scholarshipor

▪   Call 1-888-712-4188 to request an application by mail or fax, or

▪   Email conference@californiafarmconference.comto request an application, or

All applications must be received by December 6, 2013.   Applications received after close of business on December 6, 2013 through December 31, 2013 shall be placed on a waiting list.

About the California Small Farm Conference: Founded in 1982 by the Small Farm Center at the University of California, Davis, the California Small Farm Conference (http://www.californiafarmconference.com/) is the state’s premier gathering for not only small farmers, but farmers’ market managers, agricultural students, researchers, writers and food advocates to come together to network, learn, discuss and grow.

The Conference is a unique opportunity for smaller‐acreage producers to gain insight from technical experts, network with other farmers and ranchers, and learn sustainable farming practices, business aspects, and more.

Get all the latest updates on the 27th annual California Small Farm Conference by “liking” us on Facebook http://www.facebook.com/CaliforniaSmallFarmConferencewhere we regularly post news, photos, tips and more.

2016-05-31T19:43:11-07:00November 7th, 2013|

FOUNDING DIRECTOR ANNOUNCED FOR NEW WORLD FOOD CENTER AT UC DAVIS

Roger Beachy to Direct World Food Center


Announced TODAY, acclaimed plant biologist Roger Beachy will become the founding director of the new World Food Center at the University of California, Davis.


Beachy, internationally known for scientific leadership and groundbreaking research in crop disease-resistance, is charged with linking transformative research with partnerships to address challenges and opportunities at the intersection of food, agriculture and health.

  Celebrating the announcement are, from left, Karen Ross, secretary of the California Department of Food and Agriculture; Rep. John Garamendi, D-Walnut Grove; UC Davis Chancellor Linda P.B. Katehi; and Roger Beachy (Gregory Urquiaga/UC Davis photo)

The World Food Center’s mission is to increase the economic benefit from campus research; influence national and international policy; and convene teams of scientists and innovators from industry, academia, government and nongovernmental organizations to tackle food-related challenges in California and around the world.


“Based on the history of UC Davis and its role in helping make California agriculture the envy of the world, I believe the World Food Center can make a transformative difference positively influencing food production and consumption here and around the world,” said Karen Ross, secretary of the California Department of Food and Agriculture.


“UC Davis is one of the very few universities in the world equipped to address global food challenges in a comprehensive manner,” Beachy said, with the added advantage of being geographically located in California’s Central Valley — the nation’s most productive agricultural region, which drives the state’s $43.5 billion annual farm economy.


Beachy, an elected member of the National Academy of Sciences and the 2001 recipient of the prestigious Wolf Prize in Agriculture, is currently the founding executive director and CEO of the Global Institute for Food Security in Saskatchewan, Canada. He was appointed in 2009 by President Obama as the first director of the U.S. Department of Agriculture’s National Institute of Food and Agriculture, where he served until 2011.

2016-05-31T19:43:11-07:00November 7th, 2013|

BULLETIN: USDA ISSUES FRAUD ALERT!

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FRAUD ALERT! Producers Be Aware of
Circulating Fraudulent Letter
USDA has been made aware TODAYthat there is a fraudulent letter circulating to producers and/or contractors. The signature line in these letters reads “Frank Rutenberg” and the sender claims to be a USDA employee seeking information about the recipient. 
These letters are a fraud, the sender is fictitious and recipients should NOT respond to these letters.
Should you receive one of these fraudulent letters, please notify your local Farm Service Agency or a USDA Service Center representative.
Please share this information with your fellow farmers and ranchers.

2016-05-31T19:43:11-07:00November 6th, 2013|

TENSION BETWEEN FOOD AND WATER SUPPLIES

CALIFORNIA AG WATER STRESS REFLECTS GLOBAL SITUATION  

According to World Resources Institute (WRI), currently more than 25 percent of the world’s agriculture is grown in highly water-stressed areas. That includes half of irrigated cropland, which itself is responsible for 40 percent of the global food supply.


Water stress is defined by the amount of water used in an area compared to its renewable supply. In highly water-stressed regions, 40 percent or more of the supply is used up annually; when that ratio reaches 80 percent, it’s considered extreme. In addition to hurting agriculture production, a stressed supply also affects water managers’ ability to respond to droughts and other severe or chronic shortages.


Water demand in some parts of the world already exceeds natural local supply, as it does in California. Overlaying global crop production maps with WRI’s Aqueduct’s Water Risk Atlas reveals agriculture’s current exposure to water stress. The Atlas also shows projected changes.
Current Water Risk, Featuring California View (Source: WRI)
Finding a balance between water availability and agriculture is essential, especially as the global population expands. Only by looking at food and water together is it possible to address the challenges within both.

 

Forecasts for 2030 water demand, under business-as-usual conditions, show a 50% rise.  Agriculture will drive nearly half of the additional demand, because global calorie production needs to increase 69 percent to feed 9.6 billion people by 2050.
The food-water tension won’t affect just agriculture; agriculture’s growing thirst will squeeze water availability for municipal use, energy production, and manufacturing, as we are seeing in our own state.


By 2050, the world will need about 60 percent more calories annually to feed 9 billion people. Cutting current food loss and waste levels in half would shrink the size of this food gap by 22 percent.


That is why WRI is working on mapping how the world’s relationship with water will be changing in the coming decades and identifying sustainable solutions to increase food production.
Projected Water Risk, Featuring California View (Source: WRI)
To ensure a water- and food-secure future, solutions include:

      1. Reduced food loss and waste (Nearly 25% of global food calories produced go uneaten.)  
      2. Improved storage methods 
      3. Food redistribution
      4. Better food date labels 
      5.  Reduced portion sizes
      6. Consumer awareness campaigns
      7. Collaboration on solutions 
      8. Food loss and waste reduction targets
      9. Collaborative initiatives
      10. Shift to healthier diets 
      11. Reduced biofuel demand 
      12. Achieved low replacement fertility rates (population growth)
      13. Increased crop yields through better soil and water management.
      14. Better data on where and how agriculture is water-constrained provides a tool for a more robust agricultural sector that does not overtax water and other natural resources. 
      15. So, while California’s agricultural water situation is dire, particularly in the Central Valley, unfortunately, we are NOTalone.

      Sources:  
      Lindsay Abrams, Salon   
      World Resources Institute/Coco Cola Corporation

      WRI is a global research organization that works closely with leaders to turn big ideas into action to sustain a healthy environment—the foundation of economic opportunity and human well-being.

      2016-05-31T19:43:11-07:00November 6th, 2013|

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