News Update
Oct. 14, 2010

NCBA Calls For Congress To Act On Death Tax

The National Cattlemen’s Beef Association (NCBA) and 49 other organizations representing small businesses sent a letter to the House and Senate regarding the failure of Congress to take action on the estate tax, commonly known as the death tax, prior to adjourning for the November elections. The organizations signing the Oct. 12 letter represent the Family Business Estate Tax Coalition. The Coalition emphasized in the letter that family businesses, including farms and ranches, need resolution now because at the end of 2010 the estate tax rate will revert back to the pre-2001 level of 55% and the exemption amount will fall to $1 million. NCBA President Steve Foglesong said allowing the estate tax to revert back to the 55% level would essentially represent passing a death sentence to family-owned operations.

“Taxing family farmers and ranchers out of business will have serious impacts on all Americans, not just in our rural communities,” said Foglesong. “This is not a tax on the ‘wealthy elite.’ The wealthy can afford accountants and estate planners to help them evade the tax. This is a death warrant for small- to medium-sized family businesses. Farmers and ranchers are often forced to sell land, equipment or the even the entire ranch just to pay off tax liabilities. This is money that could otherwise be reinvested to grow the family business and hand it down to future generations.”

The goal of the Coalition has always been full repeal of the estate tax. However, members of the Coalition expressed strong support of an amendment by Senators Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) to bring meaningful and permanent reform to the estate tax. The group also issued support for a similar bill (H.R. 3905) in the House introduced by U.S. Representatives Shelley Berkley (D-Nev.) and Kevin Brady (R-Texas). These bipartisan proposals increase the exemption level to $5 million and reduce the rate to 35%. These proposals also ensure that any relief related to the exemption is tied to inflation and that stepped-up basis is included. The Coalition stated that the higher exemption level and reduced rate will lessen the burden of the estate tax and provide family businesses and farms with more capital to create much needed jobs and invest in their business.

“For far too long, farmers and ranchers have faced uncertainty when it comes to planning ahead for the future of their estates,” Foglesong said. “Congress must act when they get back to Washington for the lame-duck. If not, this Congress must be held responsible for the ruin of many family operations and officially preventing young people from taking over the family farm.”

Foglesong said the estate tax disproportionately hits agriculture. According to the U.S. Department of Agriculture (USDA), 98% of American farms and ranches are owned and operated by families, and the tax is considered one of the leading causes of the breakup of multigenerational family farms and ranches. Farm and ranch estates are five to 20 times more likely to incur estate taxes than other estates. According to the USDA Economic Research Service (ERS), one in 10 farm estates (farms with sales of $250,000 or more annually) were likely to owe estate taxes in 2009.

— Release by NCBA.

Beef Management Clinic Scheduled For Oct. 20 in Muleshoe

Wintertime beef cattle management will be the theme of a free clinic to be conducted Oct. 20 by the Texas AgriLife Extension Service office in Bailey County.

The clinic will begin at 9 a.m. in the Bailey County Coliseum in Muleshoe.

Curtis Preston, AgriLife Extension agent in Bailey County, said the meeting will focus on winter feeding of beef cows.

“Cattle prices are very good now and there’s money to be made in the cow business, but part of that profit margin will depend on least-cost inputs,” Preston said. “Feed prices are going up, so selecting and using the right winter supplemental feeds will be a major part of optimizing profits this year and next.”

The clinic’s keynote speaker will be Ted McCollum, AgriLife Extension beef cattle specialist at Amarillo.

For more information call Preston at 806-272-4583.

— Release by Texas AgriLife Extension Service.

USDA Announces Steps to Maintain Livestock Trade Between the U.S. and Mexico

Agriculture Undersecretary for Marketing and Regulatory Programs Edward Avalos today visited livestock inspection facilities and announced new efforts to protect the livestock trade between the United States and Mexico. After touring a temporary inspection facility in Laredo with Congressman Henry Cuellar, Avalos announced that USDA will be opening a temporary cattle inspection facility in Eagle Pass, Texas, the third temporary facility opened since the suspensions earlier this year. Tomorrow, Oct. 15, Avalos will visit the new temporary inspection facilities in Eagle Pass with Congressman Ciro Rodriguez.

“The cattle trade provides an important source of revenue for American producers and buyers and we are committed to maintaining the important trade relationship between the U.S. and Mexico,” Avalos said. “The new inspection location announced today is part our ongoing effort to aggressively pursue opportunities to keep trade lines open in spite of the recent security challenges.”

Since March 2010, USDA has suspended activities at three different livestock inspection stations in Northern Mexico, due to security concerns related to drug cartel violence. USDA took this action to protect the safety of veterinary personnel who traveled into Mexico to inspect and clear shipments of cattle destined for the U.S.

Recognizing the importance of maintaining trade, USDA immediately began diverting shipments to other ports in the area. Additionally, in order to resume regular import activities as quickly as possible, USDA identified two new, temporary locations inside the United States at the border crossings of Pharr/Hidalgo and Laredo. Operations at the new location near Pharr resumed May 12, while Laredo operations resumed May 18. Because the Piedras Negras/Eagle Pass port is a major cattle-crossing area, USDA signed a lease with Amistad Pens for a temporary facility in Eagle Pass on Oct. 7, 2010. The Amistad Pens are expected to begin accepting shipments of cattle from Mexico by the end of October.

In identifying possible sites for temporary locations, USDA must ensure that imported animals are appropriately inspected to safeguard U.S. agriculture. This means that sites must have the appropriate handling and dipping facilities, can meet the anticipated volume of animals, and are readily accessible to cattle brokers and dealers. Throughout this process, the USDA has worked to ensure the reliability and consistency of the import process by coordinating closely with producers, industry groups, the Texas Animal Health Commission, and the U.S. Department of State.

“We have not made these decisions lightly,” Avalos said. “We are constantly working to identify the best immediate and long-term solutions, and we will continue to work directly with producers and all partners affected by this ongoing situation.”

USDA continues to work closely with the U.S. Department of State to identify ongoing security concerns. No additional closures are planned at this time.

— Release by USDA.

Kemp Joins ABS as Beef Marketing Specialist

Katy Kemp has joined ABS as a beef marketing specialist.

“Katy is a great addition to the ABS beef team. She possesses a strong beef background, knowledge and experience in communications and marketing. We look forward to utilizing Katy’s expertise to further position ABS’ industry-leading beef genetics through our marketing efforts,” said Doug Frank, ABS Global beef product manager.

As a beef marketing specialist, Kemp will be responsible for working with Beef Product Management, Beef Supply Chain Management and the Beef Enterprise team on developing and communicating the ABS brand and its product and service offering. She will also work closely with the advertising and promotions team to facilitate the execution of marketing collateral. Kemp will be based in DeForest, Wis.

— Release by ABS.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.