18 minute read
EYES ON ASSOCIATES
By WPVGA Associate Division President Julie Cartwright, Jay-Mar, Inc.
Greetings and happy June! The cold, wet, snowy start to spring really put a crunch on timelines for fieldwork. Hopefully summer will be in a better mood!
At our WPVGA Associate Division meeting in April, we reviewed grant proposals that had been submitted in support of potato research and seed production. As part of the submittal process, we ask that the applicants get multiple bids for their items, including at least one bid from an Associate Division member company. This is a great way to patronize our members whose generosity allows grants like these to be possible. The Associate Division Board settled on awarding a total of $11,259.98 to be distributed as follows: • Hancock Agricultural Research
Station is to receive $659.98 for the purchase of two wireless speaker and microphone sets for field days and other public events held there. • Rhinelander Ag Research Station is awarded $5,000 toward the purchase of new gear boxes for their center pivot. • The Wisconsin Seed Potato
Certification Program is receiving $1,600 for the purchase of an 18inch soil moisture probe. • Wisconsin Seed Potato
Improvement Association is granted $4,000 to help offset travel expenses of Walt Stevenson and up to two other individuals to serve as representatives for the Wisconsin
Seed Potato Industry at 2023 Potato
Expo. On April 30, I had the honor of attending a groundbreaking ceremony for the Food + Farm Exploration Center being built through funds raised by the Farming
Representing the Compass Insurance team during the 2021 Sporting Clays Shoot at Wausau Skeet & Trap Club are, from left to right, Perry Worzella, Curtis Meister, Justin Yach, Trina Yach, Erin Meister, and Scott Worzella. A WPVGA Associate Division fundraiser, the 3rd Annual Sporting Clays event is scheduled for October 20, 2022, at the Wausau Skeet & Trap Club.
for the Future Foundation. What an exciting event attended by people from all corners of the agriculture industry! The center will be such a fantastic tool to educate all ages on the wide-reaching influence of agriculture in our society and economy. The grand opening of the Food + Farm Exploration Center will be in about a year. Its primary purpose will be to educate the public on where their food comes from and the diversity of careers available in agriculture. Currently, agriculture employs one out of every nine people in the workforce. As of the groundbreaking ceremony, upwards of $20 million has been raised for this project, and the public phase of fundraising has only just begun. Late last year, the Associate Division contributed $40,000 to this project! Please see complete coverage of the Food + Farm Exploration Center groundbreaking ceremony in this issue.
The Associate Division is so proud to be able offer financial support to our research stations, the Farming for the Future Foundation, educational scholarships, and other agricultural interests as they arise. This is only possible through the generous participation of our Associate Division members at fundraising events held throughout the year like the upcoming ones listed below. Thank you so much! • July 19, 2022: Putt-Tato Open at the
Ridges Golf Course in Wisconsin
Rapids; 9 a.m. registration, 10 a.m. shotgun start • October 20: 3rd Annual Sporting
Clays event at Wausau Skeet & Trap
Club in Brokaw In this growing season, we have and will continue to face weather, economic, supply, and labor challenges. Despite the struggles, we should never lose sight of the value that agriculture brings to society. In the words of Bob Dole, “I hate when a farmer says, ‘I’m just a farmer.’ This farmer doesn’t realize what he does for America, what he does for the economy and what he does for his family. Farmers are very important.”
The Putt-Tato Open will be held at the Ridges Golf Course, Wisconsin Rapids, on July 19, 2022. Playing for Nutrien Ag Solutions at the 2021 Putt-Tato Open are, from left to right, Jim Beach, Sara Hildebrandt, Bryan Chilewski and Chad Taylor.
Julie Cartwright
WPVGA Associate Division President
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Expired Tax Breaks Could Alter Your 2022 Strategy
By Bradley Boettcher, Olga Zarney, and Jennifer Rohen, CliftonLarsonAllen
As your organization embarks on asset acquisition, financing, employment, operational, and other organizational decisions this year, bear in mind some major tax changes for 2022. Many provisions expired in 2021, which could have a significant impact on your tax plan. So, what changed in popular business tax breaks? Forty tax provisions affecting individuals and businesses expired in 2021. Six ceased after the third quarter and 34 elapsed at the end of the year. Some provisions were related to pandemic relief and arguably intended to expire at some point, while others are on the perpetual list of “tax extenders” that Congress has not yet made permanent. Congress might decide to extend all, some, or none of the provisions retroactively, but this legislative practice can create uncertainty, anxiety, and confusion for business owners who want to make taxinformed decisions.
Above: Business tax planning is essential. Given the uncertainty surrounding expired and expiring tax provisions, business owners could be forced to make organizational decisions this year without knowing the full tax effect of them. Left: Congress might decide to extend all, some, or none of the provisions retroactively, but this legislative practice can create uncertainty, anxiety, and confusion for business owners who want to make taxinformed decisions.
Review and discuss the full list of expired provisions with your tax advisor. Meanwhile, we’ve highlighted popular business tax breaks that expired in 2021 and the potential impact on your organization. Limitations on business interest are reverting. The first provision relates to the ability of certain businesses to deduct their interest expense based on gross receipts or classification as a “tax shelter,” for which small businesses can easily fall victim without even realizing it.
AVOID TAX SHELTER TRAP
Taxpayers with losses should consult with their tax advisors and review their situations carefully to help avoid the tax shelter trap that could subject them to the Section 163(j) limitation. The Section 163(j) business interest limitation was part of the Tax Cuts and Jobs Act of 2017 (TCJA), enacted for tax years beginning in 2018. In response to the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) temporarily eased the burden of this limitation. Taxpayers could elect to use a 50 percent adjusted taxable income (ATI) limitation for 2019 and 2020 (rather than the normal 30 percent) and use their 2019 ATI to compute 2020 business interest limitation. The CARES Act relief allowed many businesses to deduct their interest in full. For 2022, the business interest limitation is back to 30 percent of ATI. Depreciation, amortization, and depletion are no longer added back in computing ATI after the 2021 tax year. These changes could limit your deduction for business interest even if you haven’t previously been subject to this limitation.
continued on pg. 46
Out there in the field, there is no board of directors to consult, no panel of experts to poll. But that doesn’t mean you’re left to navigate the sometimes-rocky terrain solo. You are always backed by the unwavering support and knowledge of your Valley® Dealer to help resolve problems quickly and efficiently, day in and day out.
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Employee retention credit (ERC) is still available. Although the ERC has yet to be extended into 2022, employers who met the eligibility requirements have three years from the time the original payroll tax return filings were due to amend those returns to claim the credit. To qualify, an organization’s activities must have been fully or partially suspended due to a government order. This means that a signed government order must have affected at least 10 percent of the receipts or employee service hours as compared to the same period in 2019.
DECLINE IN GROSS RECEIPTS
Alternatively, if an organization experienced a significant decline in gross receipts in any quarter in 2020, or for the first three quarters of 2021 compared to the same quarter in 2019, the company might also qualify. This means that, in 2020, there must have been a greater than 50 percent reduction in receipts compared to the same quarter in 2019. In 2021, an organization is eligible in any quarter where the reduction in receipts is greater than 20 percent compared to the same quarter in 2019. The current remaining opportunity for the third and fourth quarters of 2021 is for a company to qualify as a “recovery start-up business.” This means that if a business began after February 15, 2020, and had less than $1 million in gross receipts in each of the prior three years, it could qualify for up to $50,000 in credit for each of those quarters. In any year a credit is claimed, the wage expense for that year must be reduced by the credit amount. Employers who amend 2020 payroll tax returns to claim the credit must be prepared to amend their 2020 federal income tax returns as well. The same applies for employers who claim the 2021 credit.
BONUS DEPRECIATION
Bonus depreciation is phasing out. Although there were no changes to the bonus depreciation rules for 2022 (so technically, it’s not an expired
Consider multiple scenarios in any analysis, particularly if your business is contemplating major asset acquisitions, debt, or operational changes.
provision), consider upcoming changes for 2023. The TCJA increased the first-year bonus deprecation to 100 percent for assets placed in service after September 27, 2017, through January 1, 2023. The bonus depreciation rate will be limited to 80 percent in 2023, 60 percent in 2024, 40 percent limitation in 2025, and 20 percent in 2026. Unless Congress changes the law, property acquired in 2027 will not be eligible for bonus depreciation. For property with a longer production period and for certain aircraft, the phase-down is 80 percent in 2024, 60 percent in 2025, 40 percent in 2026, and 20 percent in 2027. The scheduled reduction in benefit might encourage owners to accelerate asset purchases into this year. Research and development costs must be amortized. For many years, companies have been allowed to deduct research and development (R&D) costs in the year the costs are incurred. Most recently, under TCJA, the expensing of R&D costs was allowed through December 31, 2021. However, beginning in January 2022, that provision has expired, and companies must now amortize their R&D costs over a five-year period, beginning in the midpoint of their tax year.
R&D EXPENSING
For example, Company A incurs $100,000 of R&D costs in December 2021 and Company B incurs the same $100,000 of R&D costs in January 2022. Because the costs are incurred before January 2022, Company A is allowed a deduction of $100,000 on its income tax return for tax year 2021. Company B, however, is only allowed a deduction of $10,000 on its income tax return for tax year 2022 (the costs are amortized over five years, but the amortization begins with the midpoint of the year, so only half a year of amortization is allowed). With the change to amortizing R&D costs, companies might lose their incentive to invest in R&D projects and will likely look elsewhere when developing income tax planning strategies. Business tax planning is essential. Given the uncertainty surrounding expired and expiring tax provisions, business owners could be forced to make organizational decisions this year without knowing the full tax effect of them. Work closely with your advisors to understand how these changes could affect your taxes and related cash flow over the next few years. Consider multiple scenarios in any analysis, particularly if your business is contemplating major asset acquisitions, debt, or operational changes. As tax laws continue to expire, extend, and evolve, both short- and long-term planning, as well as flexibility, become crucial. Proactive, personalized planning is the key to helping you navigate your tax liabilities and identify new opportunities for savings. Our tax professionals can help you evaluate your options and make informed decisions. For more information on business tax breaks in Wisconsin, contact Jim Halvorsen at jim.halvorsen@ CLAconnect.com or 715-221-3037.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. For more information, visit www. CLAconnect.com.
M Ma ak ke t e th he B e Be es st o t of i f it t!!
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New Products
John Deere Introduces 6120EH Tractor
High clearance protects yields and quality in high-value crops like potatoes and vegetables
John Deere has added the 6120EH Tractor to its lineup to meet the needs of high-value crop growers who require high clearance and reduced speeds to match the speed of field workers. “High-value crop production requires the ability to pull implements and conduct harvesting operations over rows of varying widths without damaging the crop,” says Dennis Ogle, marketing manager for John Deere. “The 6120EH provides up to 30 inches of drawbar ground clearance to avoid damaging the plant or roots during applications such as cultivating, spraying, transplanting, and harvest,” Ogle notes. In addition, specialty operations that include vegetables and fruit farms demand extra-slow tractor speeds that traditional transmissions may not be able to attain. The creeper transmission allows for speeds as low as .14 miles per hour (mph) to accommodate hand harvesting operations. New features on the 6120EH include: • High-crop axle maximum clearance of 33 inches • Multiple tread spacings of 72, 76, 80 or 84 inches • Creeper transmission minimum of .14 mph at rated engine speed • LED lighting package • Precision ag components (John
Deere AutoTrac™ Universal 300, 4240 Universal Display, StarFire™ 6000 Receiver and JDLink™) •Less drawbar and draft link option “Input costs for growing high-value crops continue to rise each year,” Ogle remarks. “The 6120EH, with its high clearance, helps protect crops and maximize production and quality on every acre, while also improving harvesting efficiency.” The 6120EH is now available for ordering. For more information, visit https:// www.deere.com/en/, or your local John Deere dealer.
TURN WHAT IF INTO WHAT IS.
LET’S MAKE YOUR PLANS A REALITY, TOGETHER.
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Insurance Officer (608) 370-6825
Dan.Kendall@compeer.com
Compeer Financial can provide assistance with specialty crop financing and operations based on historical data and industry expertise. Compeer Financial does not provide legal advice or certified financial planning. Compeer Financial, ACA is an Equal Credit Opportunity Lender and Equal Opportunity Provider and Employer. © 2022 All rights reserved.
Archive Combats Major Pathogens
Syngenta’s new fungicide protects potatoes against silver scurf and Fusarium dry rot
Potato growers facing post-harvest diseases now have a new option for protection during storage. Archive® fungicide from Syngenta preserves potato quality in post-harvest storage. “Archive is a powerful pre-mix fungicide that will help growers combat the major storage pathogens that threaten their crop,” says Heather Ambuehl, post-harvest lead at Syngenta. “This post-harvest tool is one that growers can incorporate into their decay management strategy.” The broad-spectrum fungicide, now registered for use in potatoes, combines two unique modes of action for more broad-spectrum disease control and built-in resistance management. Fludioxonil and azoxystrobin fungicides deliver proven, robust protection against silver scurf and Fusarium dry rot diseases, pathogens that are of particular concern while potatoes are in storage. Fludioxonil (FRAC Group 12) is a phenylpyrrole fungicide that provides proven control of some of the most difficult-to-treat storage diseases, such as Fusarium dry rot. Azoxystrobin, a Qol fungicide (FRAC 11) effective against all four classes of fungi, brings another mode of action against Fusarium and provides control of silver scurf. Join the conversation online, connect with Syngenta at www.Syngenta-us. com/social.
About Syngenta
Syngenta Crop Protection and Syngenta Seeds are part of Syngenta Group, one of the world’s leading agriculture companies. Our ambition is to help safely feed the world while taking care of the planet. We aim to improve the sustainability, quality, and safety of agriculture with world-class science and innovative crop solutions. Our technologies enable millions of farmers around the world to make better use of limited agricultural resources. To learn more, visit www.syngenta. com and www.goodgrowthplan.com. Follow us on Twitter at www.twitter. com/Syngenta, www.twitter.com/ SyngentaUS and on LinkedIn at www.linkedin.com/company/ syngenta.
Senior Agronomist/Field Department Manager Wanted
Mortenson Bros. Farms, Inc. is a progressive agribusiness located in central Wisconsin specializing in the production of potato and vegetable crops. All of our crops are grown under center-pivot irrigation across more than 14,000 acres and growing. Position Description:
This position will report directly to the owner, This position will report directly to the owner, and will direct and manage the Agronomy and and will direct and manage the Agronomy and Irrigation departments. Irrigation departments. Specific responsibilities will include: Specific responsibilities will include: • Supervise Agronomy and Irrigation Depts.• Supervise Agronomy and Irrigation Depts. • Crop planning and strategic management of • Crop planning and strategic management of field rotations; field rotations; • Budget, procure, and handle fertilizer and • Budget, procure, and handle fertilizer and chemicals; chemicals; • Plan and coordinate fertilizer and chemical • Plan and coordinate fertilizer and chemical applications including seed cutting, dry applications including seed cutting, dry
spreading, ground spraying, aerial spraying, spreading, ground spraying, aerial spraying, fertigation, and in-furrow; fertigation, and in-furrow; • Direct irrigation staff on watering needs, • Direct irrigation staff on watering needs, maintenance, and fertilizer application; maintenance, and fertilizer application; • Budget and coordinate fumigation;• Budget and coordinate fumigation; • Assist in other operational areas as needed • Assist in other operational areas as needed during planting and harvest seasons; during planting and harvest seasons; • Manage multiple professional and general • Manage multiple professional and general labor staff, provide guidance and mentoring to labor staff, provide guidance and mentoring to entry-level agronomists, and work alongside entry-level agronomists, and work alongside ownership and the Operations Manager. ownership and the Operations Manager.
Qualifications:
• Agronomy degree or equivalent experience in • production agriculture. production agriculture. • Specific experience with potatoes and other • vegetable crops such as carrots, beets, sweet
corn, green beans, and peas. corn, green beans, and peas. • Experience in upper management with Experience in upper management with demonstrated ability to work independently demonstrated ability to work independently and within an executive management team. and within an executive management team.
Compensation & Benefits:
Mortenson Bros. Farms offers a highly competitive compensation package commensurate with experience. Benefits include group health insurance, dental/vision, SIMPLE IRA, vacation/holiday pay, and a company truck.
