AgLink
Growing Oregon Agriculture through Education and Promotion
JAN-MAR 2019
Member Feature:
Blue Line Farms
PRST STD US Postage PAID Portland, OR Permit No. 5
President’s JOURNAL
Our Extraordinary Industry Wow! What a year of change and growth we’ve had for Oregon Aglink. 2018 brought us the first full year under a new director, a new staff member, a new venue for Denim and Diamonds, and a first step to finding a more suitable location for the main office. I feel positive about the path the organization has traveled.
Executive Director Mallory Phelan has done a tremendous job at leading the Oregon Aglink staff and planning for 2019. Changes implemented by Mallory and the Board of Directors were embraced by staff members Allison Cloo, Cate Stuart, and Leah Rue. I am humbled as well as excited to have these driven and inspiring women behind the day to day operations of Aglink. Our new hire, Leah Rue, hit the ground running as she helped to oversee the event planning and coordinating of Denim and Diamonds. Although we use the same planning template for the event, changing to a different venue in Salem created new challenges and decisions. Overcoming the obstacles, we achieved a record breaking fundraising year, which speaks volumes about the support and generosity of Oregon Agriculture. Most importantly, I recognize that we would not be up for the challenging task of bridging the urban and rural divide without the investment made by our industry members. Our chief effort, the Adopt a Farmer program, was able to add seven new classrooms to the participant list. Moving forward, we are exploring opportunities to better serve and highlight our more rural regions across Oregon. I am proud to have served Oregon Aglink and its membership. The board and staff are enthusiastic about celebrating our differences and working together toward a common goal: making Oregon agriculture stronger through communication and education. The diversity of crops, markets, and the people that make it all happen are unique to Oregon. I am excited to see how Aglink will continue to aid our extraordinary industry in the future. In January, at the Northwest Ag Show, Oregon Aglink will hold its annual meeting. At this time, I will be saying ‘goodbye’ to my year of service as the organization’s president. Stepping into this role for 2019 is Megan Thompson from The Dalles. She brings great vision and perspective, having grown up in Portland before beginning her career in agriculture. I look forward to seeing where she leads us!
Pamela Lucht Oregon Aglink President
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Growing Oregon Agriculture through Education and Promotion
VOLUME 14, ISSUE 1 7360 SW Hunziker St., Ste 102 Portland, OR 97223 503-595-9121 | fax: 503-595-4560 www.aglink.org www.oregonfresh.net OFFICERS Pamela Lucht, President Northwest Transplants Megan Thompson, Vice President Sage Fruit Terry Ross, 2nd Vice President Integrated Seed Growers LLC Fred Geschwill, Treasurer F & B Farms Abisha Stone, Secretary SEDCOR Jeff Freeman, Past President Marion Ag Service STAFF Mallory Phelan Executive Director Allison Cloo Director of Membership & Programs Cate Stuart Community Engagement Coordinator Leah Rue Program & Events Coordinator Susan Davis Director of Finance
CONTACT US TO ADVERTISE IN OREGON AGLINK ADVERTISING AND GUEST FEATURES: ALLISON@AGLINK.ORG ©2019 Oregon Aglink. All rights reserved. Nothing contained within may be reprinted wholly or in part without the written consent of the publisher, Oregon Aglink. The opinions and perspectives published herein are those of the authors and should not be construed as those of AgLink® magazine.
2019 Agricultural
JAN16–18
Salem, Oregon, 97301
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800.882.6789
SAL E M, OREGON
Email us at: events@eomediagroup.com
OREGON STATE FAIR & EXHIBITION CENTER
CapitalPress.com
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NW AG SHOW FEATURI NG THE BEST IN EQU IPMENT, TECH NOLOGY & AG EDUCATION .
Annual Membership Meeting January 17, 2019 Cascade Hall Oregon State Fairgrounds, Salem
10:30am Board of Directors Meeting 12:30pm Lunch & Networking For more information visit,
NorthwestAgShow.com Look for the Show Guide January 4th in Capital Press
OVER
120 EXHIBITORS & PARTNERS MORE THAN
25 seminars & workshops
3 BIG DAYS IN 3 BUILDINGS Northwest Ag Show Sponsors
1:00pm
Membership Meeting
1:30pm
Farms of the Future: Practical Tech for Oregon Ag
Presenter: Chad Higgins, Assistant Professor, Oregon State University You manage water, soil, fertilizer, and dollars on your farm in order to be successful and sustainable. What about managing sunlight? Learn about the innovative research being done at OSU that is driven by agriculturalists and is based in the idea that terabytes of data are only useful when transformed into information and combined with grower's wisdom. FREE lunch thanks to Pape Machinery and Rabo Agrifinance to registered members. RSVP at aglink.org
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Auctioneer Mac Stewart
Our annual Denim and Diamonds auction and dinner was the biggest yet! Thanks to all of our sponsors for entrees, drinks, awards, and the new after-party, we were able to raise more funds than ever and host a record sixty tables. This was the event’s first year at the Salem Convention Center. Moving south from Portland was a big change, but one that paid off as many new guests were able to join us. By our estimates, at least half of the people at the event had never attended before! We were delighted to present awards to Tom Wimmer, Agriculturist of the Year, and Oregon Dairy Women, recipients of the Ag Connection award. Honoring stars of Oregon agriculture is a highlight of our year, and you can learn more about the award winners in the last issue of AgLink or by visiting our website at aglink.org
Caption
Director Alexis Taylor of Oregon Department of Agriculture was joined by Miss United States Agriculture Gabrielle Redhead of Central Point, OR.
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Former board member John McCulley (right) enjoys the silent auction with guests Denver and Shay Pugh
Joined by Oregon Aglink Executive Director Mallory Phelan (first row, far right) representatives of Oregon Dairy Women accept the Ag Connection award for 2019.
2019 Agriculturist of the Year Tom Wimmer, Chief Operating Officer of Marion Ag Service, accepts his award from Oregon Aglink President Pamela Lucht.
Two guests, including Curtis Sawyer of Aldrich Advisors (left), try to win one of the donated bottles of wine and beer at the ring toss during the silent auction.
Members of the event committee, including Tammy Dennee, Lori Pavlicek, and Molly McCargar, took turns selling blinking lights as raffle tickets to win a live auction item.
Students from several FFA chapters and Oregon State FFA Ambassadors volunteered to help the evening run smoothly. WWW.AGLINK.COM
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MEMBER FEATURE
BLUE LINE FARMS and ranches with “Creek” names. If you’re headed east second name, referring to their on Highway 213 toward The brightly painted Ford tractors, won the Silverton, there’s a day. Forty-five years later, Blue Line stretch of road that Farms is still going strong. encompasses some IN MANY WAYS, THE of the Willamette Valley’s finest scenery DETTWYLER NAME HAS of rolling hills covered BEEN JUST AS ENDURING. with row crops, grass In 1921, Swiss immigrant Karl Dettwyler started farming part-time fields, and orchards. After the Pudding River on ten acres outside of Silverton. By the time his fourth son Bob had and right before the from Silverton High School Brush Creek Playhouse, graduated in 1959, the farm had grown to about you’ll find a white 150 acres and grew mainly hops, with building with a cupola some grain and grass seed. perched on the roof.
Climb the narrow steps up to those windows high above the road, and you get a 360 degree view of the heart of Blue Line Farms. In 1973, when brothers Bob and Bernie Dettwyler consulted an attorney about incorporating their farm, they had picked two names they might use. Brush Creek Farms would have referred to the nearby landscape, but the attorney noted that it might be hard to distinguish from other farms 6 AgLink
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The next decades were a period of growth and transition. Bob took over and increased the acreage by leasing and buying more property. His younger brother Bernie joined him after a two-year tour of duty in Vietnam. Now joined by Bernie’s sons, Karl and Jonathan, the Dettwylers own and lease about 1,100 acres of land.
POLE-BEANS AND HOPS HAVE MADE WAY FOR BLUEBERRIES AND HAZELNUTS. While some things have changed, others have stayed the same: there
is still grass-seed, mainly turf-type, and crimson clover. Green beans and other row crops are grown as rotational crops. In 2005 the farm built its own grass seed cleaner. A late-season varietal of blueberries went into the ground in 2007, and 2009 saw the first hazelnuts added to the mix. After harvest, Blue Line Farms products move mainly through local buyers, processors, and distributors. The grass seed likely travels the farthest, with the nationwide market for lawns and sports fields still relishing high quality Oregon seed, but the blueberries and green beans appear in major supermarket chains and commercial buyers closer to home.
“The farm looks the way it does today because of the hard work from our employees over the years and our relationships with our partners.” — Karl Dettwyler GROWING A BUSINESS TO MATCH A FAMILY The rhythms and choices behind the farm’s current set-up might be familiar to many AgLink readers. According to Karl Dettwyler, grandson of the
original owner, “The farm looks the way it does today because of the hard work from our employees over the years and our relationships with our partners.” Those partners, from bankers to buyers, “help drive decisions on our cropping systems and the markets that we have access to.” Labor is another big factor in how the Dettwylers operate, and the farm is focused on retaining good employees that can work alongside the growing family. “As the farm has had to support more family members financially,” says Karl, “we have added more to the operation to try and provide the opportunity to the family members that want to farm.” Even as many of the children and spouses work outside of the farm, they’ll help out as needed. Margaret Dettwyler, Bernie’s wife, is still one of the primary combine operators. Margaret and Bernie have eleven grandchildren, the oldest of whom is near eighteen, and they have all tried their hand at different farm tasks over the years. That would be the fourth generation of Dettwylers to work on the farm, and preserving the land and business is a main goal for the current operators. Of his own children, nieces, and nephews, Karl Dettwyler says “we can only hope that they pursue their dreams and passion and hopefully it will include agriculture in some form.”
WHAT MAKES BLUE LINE FARMS UNIQUE? Step into the main shop building where the owners and employees congregate and a playful personality starts to emerge at Blue Line Farms. Almost immediately to your right, a large glass display cabinet contains hundreds of tiny model tractors and other vehicles, many of them bought from another farmer but obviously displayed with great pride in their new home.
Up the stairs and through another door, it becomes clear that the case is part of a theme: shelves line the walls with dozens of blue Ford tractor models, both historic and modern. Besides the numerous colorful photos hung up between the shelves— courtesy of the snapshots Karl and others take on their cell phones around the farm—there is also a large wooden model of a hop house dryer built by the original Karl Dettwyler for his father-in-law around 1933. Across the property, in the highceilinged storage shed where a bay sits empty of grass seed, Jonathan Dettwyler has played Tetris with several pieces of equipment. A spray buggy towers over a low-slung derocker for the hazelnut orchard, and in the narrow gaps between them you can see a berry picker tucked in the shadows. The arrangement is meant to make the most of the storage space during the winter, but it also speaks to the sense of fun and challenge imbued in unexpected corners of the farm. And when it comes time to round up the family members working on the farm that day to take a photo, the jokes fly just as quick as the observations about the different pieces equipment ready to come in or head out. The five Dettwyler men patiently line up facing into the sun so the grass field and distant trees frame them. It turns out to be a nice enough photo, but snapshots are never quite enough to capture a farm and operators like these: good-natured and game for anything. From left to right: Karl Dettwyler, Bob Dettwyler, Bernie Dettwyler, Jonathan Dettwyler, and Leland Dettwyler WWW.AGLINK.COM
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TAX PLANNING FOR FARMERS:
What You Should Know for 2019 Tax season is coming up and the new changes could have an effect on your agribusiness and tax planning. The goals of the new tax law were simplification, fairness and a move towards a flatter tax system. American businesses are looking to be more competitive overseas and wanted the reduced tax rates. The final tally on the overall cost of the bill includes collections from increased taxes spurred on by this future economic growth. There is a lot of give and take in these various new laws. Many of the provisions will benefit organizations that are buying new assets or hiring new people. Here is a highlevel overview of some of the changes relevant to agribusiness. Corporate Tax Rate and C Corp Benefits The first change is that the corporate tax rate was changed to a permanent, flat 21% rate, down from 35% and there's the ability to deduct your state taxes. This change might encourage you to look at your business entity as it makes C corporations potentially more beneficial than they would have been a year ago. That's because before the tax reform, the first $50,000 of profits were taxed at 15% with a graduated rate to 35%. Since there is now a flat rate of 21% for business income, a C corporation may be something to consider. Section 199A: The Qualified Business Income Deduction The next change is to the Section 199A or Qualified Business Income Deduction. This is a new 20% deduction of the qualified business income reported by taxpayers who file a Schedule F, C or E. Owners of passthrough entities such as partnerships, LLCs and S corporations can also take advantage of the new deduction. For farmers, this replaces the Domestic 8 AgLink
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• 100% for property placed in service after 9/27/17 and before 1/1/2022 • 80% for property placed in service after 12/31/2021 and before 1/1/2024 • 60% for property placed in service after 12/31/2023 and before 1/1/2025 • 40% for property placed in service after 12/31/2024 and before 1/1/2026 • 20% for property placed in service after 12/31/2025 and before 1/1/2027
Production Activities Deduction (DPAD), which was 9% of the operating farm income deduction. C corporations do not qualify for this because they already have the 21% tax rate. This change isn't as simple as it seems on paper. This deduction will expire on December 31, 2025 and this deduction is also taken on the individual tax return, not on your entity and it depends on your taxable income. The deduction is phased out at the married joint filing level of $315,000 and for individuals at $157,500 and will have additional limitations in order to qualify. Knowing what is considered Qualified Business Income can be a complicated discussion and depends on your particular business. Increase in Depreciation Deductions Section 179 amount went from $500,000 to $1 million with a phase out limitation now starting and $2.5 million of purchases and bonus depreciation is now allowed on both new and used assets based on the following schedule:
This change in bonus depreciation from just new assets to new and used assets is important for farming entities. A farm building is a 20-year asset and you can take bonus on anything with a life of 20 years or less. The most extreme example is a building that is either new or a building that you purchased is eligible for bonus depreciation. This change might allow farming businesses to allocate the cost of land purchases to buildings and improvements and elect bonus depreciation for quick recovery of the investment.
Planning Ahead Our knowledge of the entire agribusiness supply chain from grower to processor to retailer allows us to help our clients achieve their goals. Please contact us at Aldrich Advisors at 503-585-7774 if you’d like to review these opportunities or discuss other options for tax savings.
Curtis Sawyer, CPA Curtis has been helping his clients with strategic tax planning, compliance and consulting services for more than 10 years.
Thank You
Denim & Diamonds is made possible by the generous support from the following sponsors:
to our Awards Sponsor
Denim & Diamonds is made possible by the generous support from the following sponsors:
Cascade Foods
Denim & Diamonds is made possible by the generous support from the following sponsors: Freeborn & Hadley Farms
Presented By
& Diamonds is made possible by the s support from the following sponsors:
ascade Foods
eeborn Hadley arms
Thank Thank You You Diamond Sponsors
Diamond Sponsors Diamond Sponsors
Denim Sponsor This Evening’s Reception Wines & Beers Denim Sponsor Denim Sponsor Generously Donated by & Beers This Evening’s Reception Wines the Following Wineriesby& Breweries Generously Donated
Oregon the Following Oregon Wineries & Breweries Wine & Beer Sponsors
Thank You Awards Sponsor
Thank You
Thank You
Thank You
to our Awards Sponsor
to the following for their generous sponsorship of tonight’s entrée.
Dinner Entree Sponsors
The Doerfler FLP
to our Ring Toss Sponsors
Ring Toss Sponsors
to our After Party Sponsors
After Party Sponsors
The Doerfler FLP
WWW.AGLINK.COM
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2019 WINTER EVENTS JANUARY 14-16
NW Food and Beverage World
WELCOME NEW MEMBERS!
(Formerly Northwest Food Manufacturing and Packaging Expo) Oregon Convention Center | Portland, OR
Dog River Ranch, LLC
JANUARY 16-18
Hood River Cherry Company
Northwest Ag Show
Presented by EO Media Oregon State Fair and Expo Center | Salem, OR
Know someone who should join? Share this magazine with them! They can contact us at info@aglink.org with questions or sign up for membership at www.aglink.org/membership
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JANUARY 17
Oregon Aglink Annual Meeting, now at Northwest Ag Show! Board of Directors, 10:30 AM Membership, 12:30 PM Cascade Hall, Oregon State Fair and Expo Center | Salem, OR
Executive NOTES Beyond the Bystander Effect 2018 OFFICERS Pamela Lucht, President Northwest Transplants Megan Thompson, Vice President Sage Fruit Terry Ross, 2nd Vice President Integrated Seed Growers LLC Fred Geschwill, Treasurer F & B Farms Abisha Stone, Secretary SEDCOR Jeff Freeman, Past President Marion Ag Service DIRECTORS Nicole Anderson, Wilco Joe Beach, Capital Press Ryan Bennett, Northwest Onion Company Anissa Branch, Riddell Farms Dave Buck, Aldrich Advisors Cory Carroll, Pape Machinery Jeanne Carver, Imperial Stock Ranch Cindy Cook, Cook Family Farms Shelly Davis, Boshart Trucking Dave Dillon, Oregon Farm Bureau Amy Doerfler, Doerfler Farms Bobbi Frost, Harrold’s Dairy Larry George, George Packing Kathy Hadley, Hadley Family Farms Doug Hart, Hart’s Nursery of Jefferson Dick Hartmann, Bi-En Corp Kerisa Kauer, MetLife Randy Lyons, NORPAC Margaret Magruder, Magruder Farms Molly McCargar, Pearmine Farms Jennifer McCarthy, Rabo AgriFinance Myron Miles, Miles Ranch Lori Pavlicek, 4B Farms Karren Pohlschneider, French Prairie Gardens Michelle Ratcliffe, Rootopia Travis Remington, Barenbrug Kelly Ross, Oregon Fairs Association Dick Severson, Severson Farms Sam Taylor, Pacific Ag Solutions
EX-OFFICIO Loydee Stonebrink, SunStone Farms
Having just wrapped up the biggest giving season of the year, we have probably all seen the ads and posts soliciting donations for humanitarian aid work in another country or a crowd-funding campaign for someone on social media. With the 24-hour news cycle and collective knowledge of humanity at our fingertips, there is never a shortage of demands on our attention and hearts. Have you ever felt bad but kept scrolling? Thought about getting your credit card but changed the channel? I know that I have. Of course the crisis of a natural disaster or a family’s GoFundMe account is worthy of our attention, but our funds, time, and emotional bandwidth are limited. We have to pick and choose our causes, and sometimes that is made easier when we can assume “someone else will do it.” The assumption that someone else will is the very basis for the social psychological phenomenon called the bystander effect: individuals are less likely to offer help when others are present, a diffusion of responsibility, which can result in apathy. I’m fascinated by what makes people commit to a cause, act upon their conviction, and the tipping point of when taking action matters to them personally. It’s easy to join in on collective input like cheering at a sporting event. There can be 20,000 people in an arena and the roar of the crowd builds upon the involvement of others. As an industry, it’s so easy to cheer on one another in our own industry functions such as Denim & Diamonds, Oregon Seed League, or the Oregon Women for Ag auction. It’s trickier to get more of the hundreds of people at those social and networking events to show up at the Capitol to testify, participate in Adopt a Farmer, or even sit on commissions and association boards. As humans we naturally prioritize, some of us better than others, and we have to. We simply cannot do it all. We’ve got to be careful not put off getting involved because it’s not urgent enough ... yet. You’ve probably heard, if you don’t show up, someone else will and you might not like what they think or believe. Every time the Oregon legislature commences, we’re reminded of how important the work we do in between sessions is in engaging with our non-farming and ranching neighbors near and far. As an organization, we have people show up for us every day - from our board of directors and event volunteers, to our committee members and adopted farmers - we have some of the best in the industry working with us to fulfill our mission of growing Oregon agriculture through education and promotion. We also have committed members whose dues help sustain us monetarily. Without the actions of so many, we would not have the impact we do in the lives of hundreds of students and their perceptions of Oregon agriculture every year. The saying “many hands make light work” holds true to the work of engaging consumers about how their food and fiber is produced. Whether you make resolutions or not, I challenge you to join me in carrying the season of giving throughout the year and look for ways to join in, give your time and resources in the best way you see fit. It matters that we all show up. The days of “put our heads down and keep on trucking” are gone - the organizations collectively working to create progress in our industry depend on your involvement. The more folks connected to agriculture get involved in engaging with consumers, the better we can minimize the bystander effect and benefit our industry as a whole.
Mallory Phelan Executive Director WWW.AGLINK.COM
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Agricultural safety seminars 2018–2019
SAIF’s agricultural safety seminars are free, comprehensive safety trainings designed specifically for the ag industry. The seminars are held annually from October through March.
topics Conscious decisions mean safer work Getting new employees on board for safety Chemical safety in agriculture Fields to freeways: Driving safety on and off the farm
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Bandon Central Point* Hermiston* Hillsboro* Hood River* Klamath Falls Salem* The Dalles* Wilsonville* Woodburn*
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* Sessions in both English and Spanish
For more information, or to register, go to saif.com/agseminars or call 800.285.8525.