Straight Talk: Mike Deering

Straight Talk

with Mike Deering

Mind Your Own Business

The old Hank Williams Sr. song, “Mind Your Own Business,” is a favorite of mine, and I sure wish politicians like Governor Jared Polis (D-Colo.) would heed Hank’s advice. “Why don’t you mind your own business? ‘Cause if you mind your business, then you won’t be mindin’ mine.”

So very true, Hank. Yet some elected leaders believe they know what’s best for you and your family better than you do. They want to mandate masks; mandate plastic straws; and Governor Polis believes you need to cut meat out of your diet, evident by his bonehead decision to proclaim March 20 as “Meat Out Day” in Colorado. Good grief, Governor, mind your own business and let citizens decide what they believe is best for their own lives.

Governor Polis’ ignorant decision backfired because people throughout the country stood together and told the Governor just where he could put that “meat out” proclamation. It was actually inspiring to see the grassroots take ownership of their own lives with grilling celebrations, viral videos and thousands of social media posts with the “MeatIn” hashtag. His decision resulted in more beef promotion and producer appreciation than a million-dollar television ad during the Super Bowl would have. I am confident of that. I cannot wait to see beef consumption numbers from a year ago compared to March 20, 2021. It was beyond amusing to watch Governor Polis backpedal on his proclamation and scramble to create a new one celebrating farmers and ranchers. Every once in a while, we need to be thankful for stupidity. let us live our lives the way we deem best, I do believe we can collectively turn the table on these decisions. We can transform ignorance into opportunities to showcase the importance of beef in a heart healthy diet and highlight what we do every single day to bring the most nutritious, tastiest beef to consumers’ tables. We need to stand together as an industry and alongside our loyal beef-eating customers just as we did in response to the Colorado proclamation. Why wait until the next politician declares our product unhealthy or harmful, void of facts, to unite?

This month is Beef Month in Missouri and throughout the country. This is the perfect time to share videos and post on social media. Let’s be proactive in telling our farm story and sharing facts provided by the Beef Checkoff about the nutritional benefits of beef and sharing the difference between good fat (found in beef) and bad fat. If we are proactive and generate as much positivity around our products and our beef community as we did on March 20, maybe we can convince politicians to mind their own business. Again, wishful thinking, but I am confident good will come from this unity, just as it did in March. “May is Beef Month, and on my family farm, we…” Finish your story and share it widely.

Executive Vice President

NCBA Delivers Preserving Family Farms Act: A Permanent Solution to a Generational Issue

Source: NCBA

The Preserving Family Farms Act of 2021 was introduced by U.S. Representatives Jimmy Panetta (CA-20) and Jackie Walorski (IN-2). NCBA has long supported efforts to reduce undue tax burden on farmers and ranchers. This bipartisan legislation to expand IRS Code Section 2032A would allow cattle producers to take advantage of the Special Use Valuation and protect family-owned businesses from the devastating impact of the federal estate tax, commonly referred to as the Death Tax.

“We thank Representatives Panetta and Walorski for their leadership and dedication to protecting future generations of agricultural producers through the introduction of the Preserving Family Farms Act of 2021,” said Jerry Bohn, NCBA president.

The Preserving Family Farms Act increases the maximum amount allowed under the Section 2032A exemption from $750,000 to $11 million (indexed for inflation), thus reviving a critically important tool in the toolbox for farm and ranch families across the U.S. If enacted, this legislation will provide a permanent solution to an issue that has long plagued our nation’s cattle producers.

“America’s farmers and ranchers deserve certainty in the tax code overall, and they need certainty especially when it comes to the estate tax. Without it, transition planning for the next generation of producers is nearly impossible,” Bohn said.

Background:

In the Tax Reform Act of 1976, Congress recognized the disproportionate burden of the Death Tax on agricultural producers and created Section 2032A as a way to help farmers keep their farms. However, the benefits of Special Use Valuations have been stymied over the years as the cap on deductions has failed to keep pace with the rising value of farmland.

While the current 2032A reduction is 55 percent higher than the value established two decades ago, USDA estimates that cropland values have increased by 223 percent. Agricultural land values – including on-farm buildings – have also risen dramatically, increasing by 241 percent during this same period. Due to the rapid inflation of farmland values, the 2032A deduction is no longer aligned with the needs of modern agriculture – nor does it accomplish Congress’ intended goal of providing meaningful protection to those producers who are most vulnerable to the estate tax.

Scott Cape, Owner of Jim’s Motors in Cuba, Missouri. All I have ever done is sell and trade trailers. Give me a call for your next trailer 800-897-9840 www.Jimsmotors.com Commodity Trades Welcome

Study Proves Stepped-Up Basis Repeal Would Be Detrimental to Farms and Ranches

Source: NCBA

Today (April 20, 2021), the Family Business Estate Tax Coalition (FBETC) released an EY study quantifying the impact a repeal of stepped-up basis would have on family businesses. The National Cattlemen’s Beef Association (NCBA) has long advocated for the preservation of this long-standing provision of the U.S. tax code, as well as other sound tax policies for rural America, and has been an active supporter of this study.

“The EY study sheds light on the facts that we at NCBA—among others in the agricultural community— have long known. Simply put, the repeal of stepped-up basis would have catastrophic impacts on the ability of farmers and ranchers to transfer their operations to the next generation,” said NCBA Senior Executive Director of Government Affairs Danielle Beck.

The EY study found that family-owned businesses and the local economies they support would be hit hardest by a repeal. To reveal the impact stepped-up basis repeal would have on family-owned farms and ranches, EY developed a case-study based on a theoretical familyowned cow-calf operation. In this scenario—one where the stepped-up basis is no longer a tool for familyowned business to utilize when generational transfer occurs — gains are taxed at death and would result in an immediate one-time tax liability equivalent to 280 percent of the farm’s annual income.

“NCBA continues to advocate for tax policy that allows the next generation of agricultural producers to have the economic tools to be successful. Repealing steppedup basis would adversely impact farmers and ranchers across the country. In fact, while this provision has been identified as a potential revenue raiser for government spending—it would be irresponsible to place that burden on family-owned businesses, and multi-generational agricultural operations in particular,” said Beck.

Background:

Based on the analysis of the EY study — this tax increase, whether via tax at death or carryover of basis, will have negative impacts on family-owned businesses, U.S. gross domestic product (GDP), and job creation both in the immediate and long term. Repeal of steppedup basis would impose a tax burden on top of the existing estate tax regime, further compounding these negative impacts.