News Update
April 6, 2009

Senate Vote on Death Tax Relief a Win for NCBA Members

The National Cattlemen’s Beef Association (NCBA) applauds members of the Senate for passing death tax relief in a vote on the budget resolution April 2. The Senate voted 51 to 48 to pass an amendment sponsored by Senators Blanche Lincoln of Arkansas and Jon Kyl of Arizona.

According to NCBA, the Lincoln-Kyl amendment would raise the death tax exemption to $5 million per individual and $10 million per couple, indexed for inflation. Under this amendment, the maximum tax rate is reduced to 35%. Currently, estates valued at more than $3.5 million, or $7 million for a couple, are taxed at a 45% rate. President Obama has proposed freezing it at this level so it can be dealt with at a later date. But if Congress doesn’t act to freeze or reduce the estate tax, in 2011, it will revert to a staggering 55% tax on estates worth only $1 million or more, NCBA reports.

“This vote was a recognition of the extraordinary burden the death tax places on average Americans trying to pass on family cattle operations,” said NCBA Manager of Legislative Affairs Jill Davidsaver. “The amendments don’t have the force of law, but they are important guidelines for committees that have jurisdiction over the policies in the amendments.”

“We’ll continue to push for a full repeal of the estate tax, but we realize that may not be viable right now in the current political and economic climate. The Lincoln-Kyl amendment is the best option to provide relief in the meantime,” said Gary Voogt, NCBA president and rancher from Marne, Mich.

— Adapted from a release provided by NCBA.

The 2008/2009 World Economic Crisis: What it Means for U.S. Agriculture

The world economic crisis that began in 2008 has major consequences for U.S. agriculture, according to a report released April 4 by the U.S. Department of Agriculture (USDA) Economic Research Service (ERS).

The weakening of global demand because of emerging recessions and declining economic growth resulted in reduced export demand and lower agricultural commodity prices, compared with those in 2008. These, in turn, reduced U.S. farm income and placed downward pressure on farm real estate values. So far, the overall effect on U.S. agriculture is not as severe as on the broader U.S. economy because the record-high agricultural exports, prices and farm income in 2007 and 2008 put U.S. farmers on solid financial ground.

Moreover, the debt equity ratios in agriculture tend to be more conservative than those in most other sectors of the economy. There is much uncertainty concerning the depth and extent of the crisis. The outcomes for U.S. agriculture are dependent on whether or not there is a global realignment of exchange rates to correct current macroeconomic imbalances.

To read the full report, visit www.ers.usda.gov/Publications/WRS0902/.

— Information provided by ERS.

Be Prepared for Severe Weather, Keep Livestock Safe

Severe weather can wreak havoc on the rancher or farmer’s livestock, equipment and animal housing. Planning and practicing for the worst is the best defense, according to a High Plains Journal article citing the University of Arkansas Division of Agriculture.

“If you develop a plan and practice it, then all you have to do when bad weather hits is your part,” says Tom Troxel, professor of animal science at the University of Arkansas Division of Agriculture. “Outline to farm workers and family members their particular responsibilities then practice it at least once a year in a drill. This will free everyone to secure the animals, equipment and structures with enough time to seek shelter themselves.”

If there is a thunderstorm warning in your area, put your plan into place. Specific things to consider when developing and executing the plan are available at http://www.hpj.com/archives/2009/Apr09/Apr6/Makesevereweatherpreparedne.cfm.

For more information about livestock or severe weather preparation, visit the University of Arkansas Extension’s web site at www.uaex.edu, or contact your county Extension agent.

Last-minute Tax Filers’ Checklist

The countdown to April 15 is on. Here are basic items needed for your tax return:

• Proof of identification
  
• Social Security cards for you, your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration
  
• Birth dates for you, your spouse and dependents on the tax return
  
• Current year’s tax package if you received one
  
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
  
• Interest and dividend statements from banks (Forms 1099)
  
• See Taxable Income for Students to determine if you have any other income that needs to be included
  
• A copy of last year’s federal and state returns if available
  
• Bank routing numbers and account numbers for direct deposit
  
• Total paid for daycare provider and the daycare provider’s tax identifying number (the provider’s Social Security Number or the provider’s business Employer Identification Number)
• Additional items may be needed if special tax credits are taken
  

— Release provided by the University of Arkansas Extension.

— Compiled by Crystal Albers, associate editor, Angus Productions Inc.