Land and Livestock Post

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December 2018 – Issue II

A MEATY HOLIDAY

A&M’s Rosenthal Meat Center provides beef, ham. PAGE 3

EXOTIC VEGGIES

Texas growers provide exotic vegetables to eateries. PAGE 5

BEWARE OF RAINY WOES Recent rains can lead to problems for the herd. PAGE 7

TOP HONORS Elsa Murano receives 3 distinctive honors PAGE 16

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PRESERVE YOUR OPERATIONS Plan ahead for the best way to pass on your property to your children PAGE 10


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December 2018 — Issue II

The Land & Livestock Post


News

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From the General Manager

am supposed to be putting up Christmas lights. Instead, I came up to the office on a Saturday to finish up this issue. I got out of putting up lights for all of November, mainly by grumbling. But now it is December and the Mrs. won’t put up with too much more grumbling, so I am taking my sweet time JESSE WRIGHT up here at the office trying to delay the inevitable. We don’t go all out when it comes to lights. I am not a big fan of getting on top of the house. I guess I could go a few feet at a time along the eaves and string lights from a ladder, but given my recent track record, adding a ladder to any situation is probably not in my best interest. We have an oak tree in the front yard, and I pretty much

put all my efforts and lights into it. I wrap lights around the trunk as far up as I can go and then fling the rest over the top of the tree. It usually goes pretty smoothly when I put them up, but taking them down can be problematic at times. I’ve snapped off a few strands, leaving sections in the tree top that are there to stay — kind of ghosts of Christmases Past if you will. My son is to the age now where he notices other houses all aglow, and compares them to our lone lit-up tree. He has requested more lights and a greater effort from dear old Dad. I would suggest he put up lights himself, as he is also at the age where I am pretty sure he could get on the roof if he wanted to. So instead, I just tell him that when he has his own house he can put up as many lights as he wants. I also throw in the fact that Santa doesn’t like kids who complain and the conversation quickly halts. If you are leaving more to

your children than a box of Christmas lights, such as a ranch for instance, you may want to start planning now for passing the reins. In our cover story, we take a look at generational transfer of the ranch. There are several factors to consider and steps to take to make the transition a smooth one. We also have news from around the ag industry as well as information about upcoming events and sales. Hope you enjoy it, and from all of us here at the Land & Livestock Post, have a Merry Christmas and a Happy New Year, and we will see you again in 2019. ’Til next year,

z For more information about content or advertising, contact Jesse Wright at jesse.wright@theeagle.com.

Here’s the beef — and the ham, too By AdAm Russell Texas A&M AgriLife Extension Service

’Tis the season to order traditional holiday favorites from the Rosenthal Meat Center at Texas A&M University, said Ray Riley, center manager in College Station. Riley said popular holiday meats are being seasoned and slow-smoked up to the Christmas holiday. The center’s retail store offers boneless hickory-smoked prime rib roast, briskets and spiralsliced hams along with other items, including summer sausages and nationally renowned

See MEAT, Page 4

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The Land & Livestock Post

December 2018 — Issue II

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News Meat, from Page 3 beef jerky, he said. “They are all amazing cuts of beef and pork, and anyone who has tried our beef jerky or any of the many products we sell out of the retail shop know what type of quality and flavor they’re getting when they sit down for a holiday meal,” he said. “We have a very loyal customer base this time of year.” The Rosenthal Center is located at 730 Olsen Blvd. on the West Campus of Texas A&M. For more than 15 years, the prime rib, seasoned with salt, pepper and an array of spices and slow-cooked for eight hours, has been a staple holiday offering that has grown in popularity, Riley said. Customers purchase more than 2 tons of prime rib from the retail shop during the holiday season. “ We ’ l l c o o k a b o u t 1 5 0 10-12-pound prime rib roasts leading up to Thanksgiving and

Texas A&M AgriLife Extension Service photo The Texas Aggie Brand pre-cooked prime rib roast is available now at the Rosenthal Meat Center retail store. 300 more for the month of December through Christmas,” he said. “It’s a great traditional holiday meat that continues to be wildly popular with our customers.” The meat market is taking orders now, and Riley said prime ribs will be displayed in the storefront for walk-in custom-

ers through Dec. 21 for $12.99 per pound. The retail store does ship orders. The Rosenthal Meat Center market is open to the public 9 a.m. to 6 p.m. Mondays through Fridays and during certain time slots on special weekends and home football games.

Riley said social media has broadened the center’s popularity but it has remained a relatively obscure feature on the Texas A&M campus since 1983. He said the most popular specialty smoked meat used to be a whole bone-in cured ham, but other offerings such as the prime rib and brisket have taken its place as customers’ holiday favorites. The retail shop also offers gift boxes that include beef sticks and jerky, beef and cheese summer sausage and wax-sealed cheddar cheese, Riley said. “The Sportsman Snack pack is very popular. There’s also a cheese and summer sausage pack shaped like a football,” he said. “We’ve got a lot of different gift items. The beef jerky and snack sticks are great stocking stuffers and are shelf-stable.” The market has various cuts of beef, lamb and pork available throughout the year. It also offers Texas Aggie Brand beef jerky,

which was named the best beef jerky in the country by The New York Times, he said. Riley said all beef products are from cattle processed at the Rosenthal Meat Center for classroom instruction, including the Beef 101 program, and Texas A&M AgriLife Extension Service educational programs are merchandised at the center’s retail market. Walk-in customers are welcome, Riley said, but pre-orders by phone should be made to ensure prime ribs, briskets and spiral hams are available. “An order guarantees they will get one,” he said. “We try to cook to meet demand. We want to get every customer’s needs met so when we close for Christmas we don’t have anything in the window.” For more information about the Rosenthal Meat Center, go to agrilife.org/rosenthal/. Make phone orders by calling 979-8455651.

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December 2018 — Issue II

The Land & Livestock Post


News A Cowman’s Best Friend at Calving Time! Now available with digital scale!

Safe Release!

The Dallas Morning News via AP Roy and Sofia Martinez, owners of Rae Lili Farms in Cooper walk among okra plants in the fields where they grow produce organically and source to top Dallas restaurants.

Exotic produce grown in Texas featured in more restaurants By ERIN BOOKE The Dallas Morning News

COOPER — On a dark, muddy, will-it-ever-stop-raining recent Friday, Roy and Sofia Martinez took shelter in the hoop house at Rae Lili Farm in Cooper with chef Matt McCallister and his team. They were taking a break for lunch — a big bowl of posole — after a stormy morning of planting a field of fall crops such as rapini, romanesco, cauliflower and purple broccoli. The Martinezes have been growing vegetables organically for McCallister (of the former FT33 restaurant and upcoming Homewood restaurant) and other Dallas-area chefs for about six years. In addition to common veggies like tomatoes and beets, the couple enjoys discovering exotic varieties and seeing how they fare in the often-unforgiving soil and climate of North Texas.

On that rainy fall day, they harvested kuri squash, spaghetti squash, aji crystal peppers and Mexican sour gherkin cucumbers, which are perfect for pickling. Sofia, 45, loves poring over rare seed catalogs, especially those that include Italian heirloom varieties of peppers and tomatoes. “We saw that everybody did the same old stuff, like crookneck squash and zucchini,” Roy, 51, says. “We’re drawn to things that are a little odd. It keeps things interesting for us.” Their relationship with McCallister is a symbiotic, organic one, where they “grow together,” he says. He often makes requests and gives direction on quantity, like, “That’s way too much squash.” And sometimes, he even helps out on the farm since Roy and Sofia are a two-person operation. “I like it when farmers are

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The Land & Livestock Post

December 2018 — Issue II

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News Veggies, from Page 5

Photos The Dallas Morning News via AP) Top,burgundy okra,is grown at Rae Lili Farms in Cooper,which grows produce organically and sources to top Dallas restaurants. Above, Sofia Martinez holds a box of Mexican gherkins as she surveys the scene at Rae Lili Farms.

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ambitious and are open to new ideas and willing to try growing things that are outside of the norm,” McCallister says. “They take chances and try to grow new stuff and unique items. I’ll bring them seeds and ask them to grow stuff and they always are willing to try them.” Right now, McCallister has asked them to grow espelette and urfa chiles, and last year they grew some pink plume celery. He says he’s made countless dishes with their produce over the last six years. “They have gone out of their way to go pick hachiya persimmons for me every year to make hoshigaki (Japanese-style dried persimmons) with,” he adds. The couple didn’t grow up farming, but after job transitions and a burgeoning interest in their own health, they decided to give it a try on some land that Roy’s family purchased decades ago “for the purpose of riding motorcycles,” Roy says. They currently have 78 acres and farm on 7 acres. “We tried a lot, lost a lot,” Sofia says. “We learned a lot through trial and error.” The weather can be “torturous,” Sofia says, and they’ve had their crops rot in the rain and eaten by cattle. It sets them back, but the couple seems to enjoy the hard work together. Sofia chooses the varieties they will grow and conducts the business end of things, while Roy does a lot of physical farm work. “People like her more than they like me,” Roy jokes. Sofia has even gone back to school, and is now a junior at Texas A&M University-Commerce in the college of agricultural sciences. They grow their vegetables without chemicals and use sustainable practices on the farm such as cover crops of soybeans and wheat. And they’ve had to learn how to build and maintain healthy soil, which can be difficult to till and drain. But they are dedicated soil farmers — no hydroponics here — and say there’s a certain depth of flavor you get from food grown

in soil. “Nature has its way of growing things, and we like to take the long route,” Roy says. Most of their produce goes to McCallister and other chefs, but of course they also eat what they grow, juicing when they have a surplus of celery, and making “a lot of Mexican food,” Sofia says, like posole and vegetarian tamales. The recent Chefs for Farmers food festival was co-founded in

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2010 by McCallister and restaurateur and ex-wife Iris Midler. The goal of the festival is to help connect farmers with chefs and promote the value of locally and regionally sourced food. Both farmers and chefs receive a small stipend to help with food costs. Roy and Sofia love working with chefs, especially ones such as McCallister, whose enthusiasm for growing food is contagious.

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Merry Christmas from our family to yours!

December 2018 — Issue II

We Will be Closed deC. 22nd and deC. 29th First sale oF 2019 Will be January 5th.

The Land & Livestock Post


News

Vet’s Voice: Be aware of issues due to excess rain By Dr. BranDon J. Dominguez bdominguez@tamu.edu

T

hank goodness for all the rain. I delay to raise the wish for it to cease. The recent weather has created an abundance of mud and wet ground, which leads to more issues going into the winter and the approaching calving season. Pastures that have been flooded may have accumulated debris and runoff that pose a risk to livestock. Check for debris that may have been trapped along fence lines that can cause injury and remove it before livestock are turned back on to pasture. Pay close attention to less obvious waste such as oil and chemicals that may have floated in with the water and remained as the water receded. These leftover chemicals may poison cattle if the cattle are tempted to eat the grass underneath. Access to clean water is a

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Published by Bryan-College Station Communications, Inc., P.O. Box 3000, Bryan,Texas 77805. E-mail: thepost@theeagle.com All offices are located at 1729 Briarcrest Drive Bryan,Texas 77802. POSTMASTER: Send address changes to The Eagle, P.O. Box 3000, Bryan,Texas 77805-3000 The Post is printed in part on recycled paper and is fully recyclable.

Vet’s Voice

must for cattle to survive. Natural tanks and ponds may collect contaminated runoff. Animals refusing to drink or exhibiting signs of illness near tanks should prompt an inspection of the water source. Though there may be forage available in the pasture, hay and other supplements may need to be provided as the quality of forage after heavy rains, and particularly flooding, is diminished. Wet areas of the pasture create more management problems. Cattle treading over wet ground are more likely to damage plants that are trying to recover from the climate conditions themselves. Boggy areas can cause cattle and calves to become stuck and unable to get to feed and water, so pay close attention that all cattle are accounted for. With their feet in near constant wet terrain, cattle become susceptible to foot rot, a disease that occurs when Fusobacterium necrophorum, a bacterium, is able to enter damaged skin. The ability to recognize and treat at the earliest sign of lameness has a huge impact on the success of treatment. As calving time approaches, assure that there are dry areas for cows to deliver their calves. One of the best predictors of a calf’s future is the foundation it gets early in life. If they are constantly cold and wet, more energy is consumed staying warm. Mud may make it difficult to nurse to get the extra nutrition that is needed for the calf much

The Land & Livestock Post

less for the cow to graze and produce high quality milk. Weeds can take over quickly in areas that have been disturbed by flooding or cattle grazing through wet land. Some of these weeds may produce toxic effects on cattle forced to graze them. Be wary of cattle that die suddenly, become downers, or just aren’t acting right. Prussic acid poisoning may come to mind with plants that have undergone a stressful situation while nitrate poisoning from fertilizer or runoff may be a concern in other situations. Numerous other plants and toxins may take hold when the conditions are right. It may be necessary to keep cattle off of the pasture until the toxic

December 2018 — Issue II

plants can be removed and good grazing can be re-established. Wet conditions may raise the risk of diseases that sometimes sporadically are seen. Leptospirosis often is found in contaminated waterways. Infected cattle may develop kidney disease, but more commonly will abort, causing a loss of production. Clostridial diseases, such as blackleg, which lay dormant in dry soils can get stirred after heavy rains creating a rich environment for cattle to become infected. The best practice is to ensure your cattle are well-vaccinated to provide immunity against any diseases that may occur in your area. Your veterinarian can help determine the best

vaccination program for your herd. The humid environment favors internal and external parasites. Horn flies, horse flies and ticks may be more prevalent, necessitating external parasite control measures. The wet conditions are advantageous to parasite eggs demanding more targeted internal parasite control. Liver flukes are endemic in many low-lying areas and can be a problem when the intermediate snail host increases in response to the wet conditions. Treatment with a flukicide is recommended if flukes are found to be a problem. As the rains continue, the work to provide a great environment for cattle endures.

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News What are the rules about mineral rights vs. surface rights? By Tiffany Dowell lashmeT Texas A&M Agrilife Extension

O

ne of the most surprising pieces of Texas oil and gas law may be the dominant estate rule. What does this rule mean and how does it impact surface and mineral owners in the state?

Severance of the mineral and surface estates

In Texas, and most other states, the ownership of the mineral estate can be separated (severed) from the surface estate. Put another way, one person may own the rights to use the surface of a piece of property while another person has the right to use the minerals underneath the property. Further complicating matters is the fact that both

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the surface and mineral estates may be owned by multiple people or entities simultaneously. Many times, the mineral and surface estates are separated when a landowner holding both the surface and minerals (that is, a unified estate) either sells the mineral estate to a party while retaining ownership of the surface estate, or sells the surface estate to one party while selling the mineral estate to another party or reserving the mineral estate himself or herself. This separation of the surface and mineral estates would seem to create some problems. If someone else owns the surface, how will the mineral estate owner be able to extract the oil and gas he or she supposedly owns? To deal with this issue, the law regards the mineral estate as the dominant estate and the surface estate as the servient estate with

regard to the extraction of minerals. This means that the mineral estate has certain rights — which are implied by law — that the surface estate must honor. Put another way, the surface estate must sometimes “serve” the mineral estate.

Mineral estate right to reasonable use of surface

Ownership of the mineral estate carries with it an implied right to use the surface estate as is reasonably necessary to explore, develop, drill, produce, market, transport, and store the minerals from the land. What does that mean? Over time, reasonable use of the surface has been interpreted in Texas to mean the mineral estate owner (or, far more frequently, the operator to which the mineral owner has leased his or her

December 2018 — Issue II

minerals) can use the surface to: • Enter the property covered by the mineral lease, • Explore for the oil and gas by using seismic trucks or other exploration methods, construct roads, well sites, and gathering pipelines serving wells on the property at a location of the mineral owner’s choosing, • Dig pits for handling waste fluids, • Erect storage facilities, • Extract soil and clay to build up the site, • Use groundwater for production operations, • Dispose of saltwater through subsurface injection or disposal wells. Keep in mind that this right is implied, meaning it is included in every oil and gas lease and applies on every property

See MINERAL, Page 9

The Land & Livestock Post


News Mineral, from Page 8 in Texas, unless it is expressly excluded by the parties. If the right exists, it allows the mineral estate holder to take the actions listed above without permission from or payment to the surface owner, unless such terms are negotiated between the parties.

Limitations on rights of mineral estate

Texas law essentially imposes four limitations on the rights of the dominant estate holder. First, the long-recognized limitation on these uses is that they must be “reasonable,” meaning the mineral owner and any operator of the property must not cause any unnecessary damage or make an unreasonable use of surface substances. For example, if an oil and gas company needs 1 million gallons of groundwater to produce oil on the property, the operator may not withdraw 2 million gallons and use the excess water for other projects. Importantly, however, the Texas Supreme Court has held that a pooled unit is treated as one for the purposes of determining reasonable use. Thus, if water was withdrawn from one pooled tract for use on another pooled tract, that would meet the requirement of reasonable use. Similarly, as was the case in the Key Operating Equip. Inc. v. Hegar, case before the Texas

Supreme Court, a lessee may build a road across one pooled tract to access a well on another pooled tract. Second, the mineral owner may not act in a negligent manner. Under Texas law, liability for negligence occurs when a person (here, the operator,) acts unreasonably under the circumstances and causes damage. For example, Texas courts have found negligence occurred and liability has been imposed where an operator polluted fresh groundwater with brackish water. However, in numerous instances Texas courts have found that operator actions did not constitute negligence, including failure to fence the area of operations to prevent harm to grazing livestock. Third, Texas recognizes the accommodation doctrine, a common law legal doctrine offering protections to a surface owner’s existing surface uses if certain conditions are met. The accommodation doctrine applies when three conditions are met and proven by the landowner: • Substantial impairment of existing surface use. • No reasonable alternative method available to the surface owner that would permit the surface use to continue. • Reasonable alternatives are available to the mineral owner that will allow discovery of minerals and would allow the surface use to continue. For example, in the most

recent Texas Supreme Court case addressing this issue with regards to oil and gas, the court found the doctrine did not apply to a cattle rancher seeking to maintain his ability to use corrals. The rancher argued he had an existing surface use — working cattle in the corrals; that he could not work his cattle elsewhere as he had no other corrals; and that the oil and gas company still could have produced the minerals in another manner — by moving the drilling pad away from the corrals and using horizontal drilling. The court reasoned that the rancher failed to prove the second accommodation doctrine factor because he could have built temporary pens to work cattle elsewhere on the property. As this indicates, the accommodation doctrine is not as broad as landowners might

expect or desire. Finally, a statutory provision, known as the “Common Courtesy Act,” requires that oil and gas operators inform surface owners in writing of their intent to enter the property to drill a new well or to re-enter a plugged or abandoned well at least 15 days prior to entering the property. It is unclear, however, what remedy is available to a landowner in the event the operator violates this statute, as it expressly states it does not “restrict, limit, work as a forfeiture of, or terminate any existing or future permit issued by the commission or right to develop the mineral estate in land.”

How do surface owners protect themselves?

The best option for a surface

owner to protect himself or herself is to be involved in the negotiations of the mineral lease. When the surface owner and mineral owner are the same person, it is easier to ensure that terms to protect the surface of the land are raised with the oil company. When the surface and minerals are owned by separate parties, however, these provisions may be overlooked by a mineral owner. A surface owner should seek to be involved in lease negotiations with an eye to including surface protections in the agreement. This involvement usually is sought by reaching an agreement with the mineral owner that will allow for surface owner involvement in negotiations or an agreement that the mineral owner will re-

See RIGHTS, Page 14

Have a Sweet Holiday SeaSon! To find a dealer nearest you:

1-800-750-9608 www.hudsonlivestock.com 8150 Thompson Road Miles, Texas 76861

Raising the Benchmark in Cooked Molasses Tubs! The Land & Livestock Post

December 2018 — Issue II

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News

Pass it on

Generational transfer of the ranch or farm By RoBeRt FeaRs Special to The Post

A

s Texas farmers and ranchers age, they naturally think about leaving their land and operations to their children. Generational transfer of the ranch was discussed during the 2017 School for Successful Ranching by Robert Wells and Dan Childs of Noble Research Institute. Material in this article was taken from their presentation unless otherwise noted. To avoid transferring a liability instead of a legacy, transitional planning should begin years ahead of the actual passing of the reins. Everyone needs a transitional plan, but the most vulnerable to the lack of transitional planning are young families, ranches on the edge of viable size, families and ranches with limited asset liquidity and families with complex personalities. Three situations can occur when you pass from this world without a transition plan: You may leave without knowing exactly what you have or how much it is worth. No one will remember what you said — he or she will remember only what is written. At least one family member will lose his or her mind over sorrow, confusion and/or greed. There are many advantages of a family owned business (Table 1) and transitional planning is necessary to ensure that future generations enjoy them. Hopefully, a business with assets, legacy and wealth will be transitioned in a way to provide a blessing, not a burden.

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Photo by Robert Fears Three generations of the Sterling family on the ranch are teaching the fourth generation. Experts say proper advance planning is critical to pass on the land and operation successfully.

Do you have an estate-tax problem? In 2018, the federal estate tax emption is $11.2 million for an individual or $22.4 million for a married couple. This is only a concern if the total value of the estate exceeds the tax exemption amount. If the estate value is greater than the exemption, a 40-percent tax is levied on the amount above the exemption. This

can be avoided through transitional planning.

Transition plan In developing a transition plan, you first should determine what will transfer and its value. Prepare a balance sheet that is a systematic organization of everything owned and

December 2018 — Issue II

owed by a business or individual at a given point in time. A balance sheet is a snapshot in time of financial position (net worth) and source of equity whether it is land or liquid assets. The Business Dictionary describes liquid assets as those that can be converted into cash within

See FAMILY, Page 11

The Land & Livestock Post


News Table 1. Advantages of a Family-Owned Business • Provides a sense of identity to family members • Allows for an opportunity to be around your family members • Keeps children and grandchildren close • Provides security to senior generation • Perpetuate a legacy of the family • Provides an opportunity to share resources, value and wealth • Affords freedom to work and play ”Generational Transfer of the Ranch: Is it a Legacy or Liability?” Dan Childs and Robert Wells, The Samuel Roberts Noble Foundation

Family, from Page 10 a short time, with little or no loss in value. Liquid assets include items such as accounts receivable, bank account balances, stocks and bonds. Additional information to include in the transition plan is how the assets are owned. The anticipated retirement lifestyle is also part of the transition plan. What do you plan to do after retirement — travel the world and stay in luxury hotels, do volunteer work, pursue some longawaited hobbies or simply support the kids and grandkids? Regardless of the lifestyle choice, plan for a long retirement. In the year 2000, there was a 75 percent probability for men living to the age of 78, 50 percent probability of living to 85 and a 25 percent chance of living to 91. The probable ages of women were two to three years higher than men. What are the income sources for supporting a long retirement period? Possible sources are spousal income, Social Security, ranch assets, savings and investments, work during retire-

ment or pension plans. An important thing to remember in writing a transition plan is that “equal” is not the same as “equitable.” Equal is defined as same in quantity, size, degree or value. Equitable means fair and impartial. “When planning for transition of ranch ownership, one of the major hurdles is always how to appropriately deal with children who are not participating in the operation. Rarely would all the children desire to work in the ranch operations. Succession planning should involve a decision-making process that: • Protects ongoing viability of the agricultural operation. • Provides for orderly transition of the agricultural operation to new ownership. • Preserves family harmony. A newsletter from the Hallock & Hallock Law Firm of Logan, Utah, which specializes in transitions, said, “Most parents want to treat their children fairly in their estate planning and many

See TRANSITION, Page 12

The Land & Livestock Post

December 2018 — Issue II

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News

Photos by Robert Fears Transitional planning should begin years ahead of the actual passing of the reins. Operation plans and strategies should be discussed on a regular basis with the heir or heirs who will inherit the ranch or farm.

Transition, from Page 11 assume this means having their children inherit equal amounts of value. When it comes to transitional planning for a family ranch, fair will almost never mean equal.”

Estate plan

Estate planning is a crucial part of the transition plan and encompasses one of three methods. Intestate succession automatically occurs when there is no will, the will is partially or completely invalidated or a trust exists but assets were not transferred to it. A surviving spouse will always take at least some of the intestate estate unless there is prenuptial agreement in place. Only blood relatives and/or adopted children can receive

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inheritance. Stepchildren and in-laws are not eligible. An advantage of intestate succession is that it requires little or no effort from the estate owner. There are several disadvantages of in-

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testate succession, however. You are unable to select who handles your affairs and several people may volunteer. The owner is unable

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December 2018 — Issue II

The Land & Livestock Post


News Plan, from Page 12

Table 2. Advantages and Disadvantages of a Will Advantages Leaves control with testator until death Can direct where property goes (almost anywhere) Can select executor Can name guardians Does its job than goes away

Disadvantages Must go through probate Easily contested Lengthy and public process State-specific Cannot operate long-term w/o other tools

”Generational Transfer of the Ranch: Is it a Legacy or Liability?” Dan Childs and Robert Wells, The Samuel Roberts Noble Foundation

Table 3. Advantages and Disadvantage of Living Trusts Advantages Eliminates probate for assets in trust Don’t need guardian to hold assets for minors Not public information Very difficult to contest

Disadvantages May have trustee fees Adds complexity to management of assets in life Requires coordination with other estate tools Still needs will

”Generational Transfer of the Ranch: Is it a Legacy or Liability?” Dan Childs and Robert Wells, The Samuel Roberts Noble Foundation

to direct who gets the property — succession rules dictate heirs. There is no provision for stepchildren, nephews, cousins, charities or any outside parities. The second method of estate succession is a will which is a set of directions for distribution of your property after you pass away. A will is effective only after you pass away. For a will to be valid, you must have testamentary capacity when it is written. Testamentary capacity is defined as a term used to describe a person’s

Ag Breakfast

legal and mental ability to make or alter a valid will. A will must be executed correctly and probated. Advantages and disadvantages of wills are found in Table 2. Trusts are the third method of estate succession defined as sets of instructions for management of a legal entity. A trust can be simple or complex, but it must be drafted carefully to ensure your goals and objectives are met. It involves a trustor, trustee, beneficiary and trust property. Items to consider in

See TRUST, Page 14

20th A of Bra

The B/CS Chamber of Commerce thanks our Ag Breakfast sponsors & contributors! Title Sponsors

Friends of Agriculture HEB ● Walker Partners ● KBTX ● Hillier Funeral Home ● The Eagle - Land & Livestock Post ● Wells Fargo ● M Andrews Financial Services ● Brenham National Bank ● Rock Steady Boxing College Station ● The Car Additional Contributors

Americot Cotton Seed ● Brazos Bottom Crop Care ● Brazos Valley Livestock ● Ed Schneider ● Citizens State Bank of Somerville Feathercrest ● Hilton College Station ● John & Connie Giesenschlag ● Ken Tharp & Overall Lumber ● Monsanto ● Royalty Readfield Meats & Deli ● Ruffino Meats & Food Services ● Scarmardo Gin ● Scarmardo Produce ● Slovacek Sausage ● Ste West, Webb, Allbrighton & Gentry

The Land & Livestock Post

December 2018 — Issue II

13


News Trust, from Page 13 creating revocable living trusts include duration, rights of the trustee, uses of trust income and principal and timing of distribution to beneficiaries. Trustees can include buy, sell and lease property; lease mineral rights; invest funds; distribute trust income; and distribute trust principal. Advantages and disadvantages of trusts are found in Table 3.

Successful transition

There are five steps to successful transition: • Determine current status of the estate

• Communicate with stakeholders; develop business succession, estate and gift plans; and deployment of plans. First determine where you are now by preparing a balance sheet. Great families have great communication, so communicate with the stakeholders throughout the planning process. • Develop business succession and estate/ gifts plans to support the transition plan. Periodically evaluate the transition plan and revise it when appropriate. Success of transition plans is greatly enhanced when they are prepared with the right

professional help. • Ask people with transition plans which professional they used and if they were happy with the service. Professional association directories also can act as a source of names. Interview the professional before hiring, ask for references and check the person’s credentials. Then contact the references and get their evaluations of the professional. • Ask for a written engagement agreement and involve other stakeholders in selection. Leave your heirs a legacy, not a liability, through a good planning process.

Rights, from Page 9 quire certain terms be include in all mineral leases. The type of surface-protection terms that could be negotiated, for example, include a requirement that a surface owner and the mineral lessee mutually agree on the location of any wells or other drilling activities, a clause requiring the operator to place the surface back into the same condition that it was prior to drilling being commenced once drilling is completed, or including a liquidated damage clause in the lease that would require the oil company to pay a set amount at the beginning of the lease to cover surface damages. Another option is for a surface owner to work with the oil company leasing the minerals. Even though they are not required to do so, many oil companies will attempt to be neighborly and work with the surface owner to avoid conflicts. A surface owner also may seek an agree-

ment as to surface-use with the oil company that leased the minerals. Although the oil and gas company is under no legal obligation to enter into a surface use agreement, they are often willing to do so in order to avoid conflicts or issues with the surface owner. A third option may be for a surface owner to purchase all, or a portion of the undivided mineral estate underlying his land. If the surface owner becomes a mineral owner, this may allow him or her to have some input into the negotiation of mineral leases. Finally, surface owners who reside in subdivisions or municipalities may be able to rely upon ordinances or deed restrictions issued by the subdivision or municipality to obtain some protection. z Portions of this article were excerpted from the handbook Petroleum Production on Agricultural Lands in Texas: Managing Risks and Opportunities.

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14

December 2018 — Issue II

The Land & Livestock Post


News LIVESTOCK MARKET REPORT Anderson

Results of the Mid-Tex Livestock Auction’s Nov. 29 sale. Head: 2,510 Steers: 200-300 lbs., $108$165; 300-400 lbs., $110-$185; 400-500 lbs., $110-$173; 500600 lbs., $105-$145; 600-700 lbs., $105-$132; 700-800 lbs., $100-$122 Heifers: 200-300 lbs., $100$172; 300-400 lbs., $110-$160; 400-500 lbs., $100-$180; 500600 lbs., $100-$130; 600-700 lbs., $100-$130; 700-800 lbs., $100-$120 Slaughter bulls: $55-$75 Slaughter cows: $16-$45 Bred cows: $400-$900 Cow/calf pairs: N/A

Brenham

Results of the Cattleman’s Brenham Livestock Auction’s Nov. 16 sale. Head: 2,237 Steers: 200-300 lbs., $150$200; 300-400 lbs., $145-$220; 400-500 lbs., $138-$230; 500600 lbs., $120-$172; 600-700 lbs., $115-$152; 700-800 lbs., $113-$135 Heifers: 200-300 lbs., $146$176; 300-400 lbs., $144-$270; 400-500 lbs., $125-$172; 500600 lbs., $115-$172; 600-700 lbs., $111-$138; 700-800 lbs., $105-$121 Slaughter bulls: $45-$75 Slaughter cows: $17-$50

Bred cows: $500-$1,100 Cow/calf pairs: $850-$1,000

Buffalo

Results of the Buffalo Livestock Commission’s Nov. 17 sale. Head: 2,670 Steers: 200-300 lbs., $140$187; 300-400 lbs., $135-$205; 400-500 lbs., $130-$200; 500600 lbs., $125-$155; 600-700 lbs., $115-$145; 700-800 lbs., $110-$136 Heifers: 200-300 lbs., $135$160; 300-400 lbs., $120-$155; 400-500 lbs., $110-$145; 500600 lbs., $105-$140; 600-700 lbs.,$95-$128; 700-800 lbs., $90$118 Slaughter bulls: $50-$82 Slaughter cows: $15-$56 Bred cows: $750-$1,450 Cow/calf pairs: $875-$1,475

Caldwell

Results of the Caldwell Livestock Commission’s Nov. 28 sale. Head: 1,491 Steers: 200-300 lbs., $155$188; 300-400 lbs., $147-$185; 400-500 lbs., $140-$177; 500600 lbs., $125-$143; 600-700 lbs., $120-$132; 700-800 lbs., $110-$121 Heifers: 200-300 lbs., $145$182; 300-400 lbs., $133-$180; 400-500 lbs., $130-$177; 500600 lbs., $120-$180; 600-700 lbs., $115-$135; 700-800 lbs.,

Jordan

$105-$120 Slaughter bulls: $50-$67 Slaughter cows: $20-$55 Bred cows: $650-$950 Cow/calf pairs: $800-$1,050

Groesbeck

Results of the Groesbeck Auction and Livestock Company’s Nov. 29 sale. Head: 1,456 Steers: 300-400 lbs., $165$187; 400-500 lbs., $142-$170; 500-600 lbs., $115-$150; 600700 lbs., $105-$137 Heifers: 300-400 lbs., $130$160; 400-500 lbs., $127-$137; 500-600 lbs., $118-$131; 600700 lbs., $115-$127 Slaughter bulls: $65-$80 Slaughter cows: $27-$46 Bred cows: $550-$950 Cow/calf pairs: N/A

Results of the Jordan Cattle Auction’s Nov. 29 sale. Head: 4,586 Steers: 200-300 lbs., $175$190; 300-400 lbs., $165-$186; 400-500 lbs., $145-$188; 500600 lbs., $138-$154; 600-700 lbs., $128-$138; 700-800 lbs., $125-$132 Heifers: 200-300 lbs., $150$175; 300-400 lbs., $150-$182; 400-500 lbs., $135-$152; 500600 lbs., $120-$150; 600-700 lbs., $118-$124; 700-800 lbs., $110-$129 Slaughter bulls: $53-$64 Slaughter cows: $30-$48 Bred cows: $540-$1,175 Cow/calf pairs: $900-$1,275

Navasota

Results of the Navasota Livestock Commission’s Nov. 17 sale. Head: 2,763 Steers: 200-300 lbs., $115$215; 300-400 lbs., $115$207.50; 400-500 lbs., $115$205; 500-600 lbs., $110-$175; 600-700 lbs., $110-$137; 700800 lbs., N/A Heifers: 200-300 lbs., $115$190; 300-400 lbs., $115$172.50; 400-500 lbs., $115$155; 500-600 lbs., $110-$145; 600-700 lbs., $105-$135; 700800 lbs., N/A Slaughter bulls: $55-$75 Slaughter cows: $15-$54 Bred cows: $600-$975 Cow/calf pairs: $900-$1,050 — Special to The Post

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The Land & Livestock Post

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December 2018 — Issue II

15


News Elsa Murano receives honors for Texas A&M AgriLife leadership By Blair Fannin Texas A&M AgriLife Extension Service

For decades, Texas A&M AgriLife has been recognized as a leader in agriculture production, processing and food safety. Helping continue that tradition has been Elsa Murano, who has received three distinctive honors recently. Womeninc. magazine has named Murano as part of its 2018 Most Influential Corporate Board of Directors, while Latino Magazine has named Murano recipient of its Maestro Award for Community Service. Culminating an academic career in food production systems and safety, she will also be inducted into the Meat Industry Hall of Fame in February. Murano, former president of Texas A&M University and vice chancellor for agriculture and life sciences, served as undersecretary for food safety with the U.S. Department of Agriculture from

Texas A&M AgriLife photo Elsa Murano is director of the Norman Borlaug Institute for International Agriculture at Texas A&M University. 2001-2004. She is currently director of the Norman Borlaug Institute for International Agriculture at Texas A&M in College Station. Through the years, Murano has served on the boards of Hormel, Food Safety Net Services and EcoLab. “I am very honored to receive these recognitions, but most gratifying is to be recognized for helping to lead our efforts to improve the safety of our food supply, as well as the long-standing tradition of Texas A&M agriculture as the pre-eminent leader in production, processing and food safety education,” she said. “When people think of these important areas when it comes to food, they think of Texas A&M AgriLife, whether it’s research, Extension or education.”

Murano recalled her work as the top food safety official in the federal government. Upon assuming her role as undersecretary, she and her team were faced with outbreaks of foodborne illness due to contaminated meat products, necessitating the recall of millions of pounds of product from the market. “The team implemented several science-based measures that resulted in reaching the CDC’s goals for reduction of foodborne illnesses in the U.S. from contaminated meat products six years ahead of schedule,” Murano said. The Maestro Award for Community Service recognizes Murano’s leadership at the Borlaug Institute, including its activities helping small farmers out of poverty through agriculture and science. “The way we have been able to successfully effect change in countries like Ethiopia, Rwanda, Guatemala and Indo-

See MURANO, Page 17

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December 2018 — Issue II

The Land & Livestock Post


News Murano, from Page 16 nesia is to connect the farmers to each other through cooperatives and help them engage in value chains to meet market needs for their products,” Murano said. “We basically help them help themselves through training, demonstrations and other activities. As a result, their incomes are enhanced, enabling them to provide for their families, to send their kids to school, to have hope and a future.” Murano cited the Borlaug Institute’s work in Honduras, El Salvador and Guatemala, which has focused on coffee production. “Our work with coffee farmers in Central America has gone quite well,” she said. “They have had tragic issues with coffee leaf rust disease. Of course, we all know that Americans love coffee, all of which is imported. That’s why this effort is so important in Central America, especially helping those farmers

overcome such challenges to their production. “The disease can wipe out their entire crop and annual source of income to feed their families,” Murano said. “We’ve been able to help develop a resistant coffee variety through conventional breeding, as well as teach them best production practices that promote keeping the fields clean, which helps prevent the fungus from establishing itself in the field.” Murano said the mission of the Borlaug Institute is to carry out its work based on Norman Borlaug’s words of wisdom: “The first essential component of social justice is adequate food for all man mankind.” “Those words continue to drive our international work daily at the Borlaug Institute, something we are very proud and honored to carry out,” Murano said. For more about the Borlaug Institute, go to borlaug.tamu.edu/.

Beef Cattle Short Course set for Jan. 8, Jan. 15 in San Antonio By Paul SchattenBerg Texas A&M AgriLife Extension Service

SAN ANTONIO — The Texas A&M AgriLife Extension Service and Bexar County Agriculture and Natural Resources Committee will present the 2019 Beef Cattle Short Course on the evenings of Jan. 8 and Jan. 15 at the Ozuna Library of Palo Alto College, 1400 Villaret Blvd. in San Antonio, Day-of program registration begins at 5:30 p.m. each day with presentations beginning at 6:30 p.m. There will be refreshments, door prizes and vendor booths. The cost is $15 per session. To register for one or both sessions, send check or money order payable to Bexar Ag/NR Committee, 3355 Cherry Ridge, Suite 212, San Antonio, TX 78230. Topics and presenters for the Jan. 8 session will be:

• Texas Beef Production Around the World — Joe Paschal, AgriLife Extension livestock specialist, Corpus Christi. • International Marketing — Pasquale Swaner, AgriLife Extension agriculture and natural resources agent, Falls County. Topics and presenters for the Jan. 15 session will be: • Feeding Hay and Preparing for Spring Green-Up — Larry Redmon, AgriLife Extension forage specialist and program leader, College Station. • Common Range and Brush Species – Effective Application and Timing — Bob Lyons, AgriLife Extension range specialist, Uvalde. The Jan. 15 session will also offer two Texas Department of Agriculture continuing education units – one general and one integrated pest management – for licensed applicators.

Sponsors include Capital Farm Credit, Full-O-Pep, Texas Farm Credit, Corteva agriscience, Dos Veces Hall Ranch Inc., Texas Farm Bureau and AgWorkers Insurance. For a workshop flyer, go to bit. ly/2KmdHWS. For more information, contact Sam Womble at the AgriLife Extension office in Bexar County at 210-631-0400 or sam.womble@ ag.tamu.edu.

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DECEMBER Dec. 6 • Jordan Cattle Auction Special Stocker & Feeder Sale, San Saba, TX Dec. 7 • Lone Star Angus Alliance Bull Sale, Hallettsville, TX Dec. 8 • Texas Angus Assn. Performance Tested Bull Sale, College Station, TX

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December 2018 — Issue II

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Solid Rock Ranch

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The Land & Livestock Post


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December 2018 — Issue II

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