LMD Feb 24

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Riding Herd Saying things that need to be said. February 15, 2024 • www.aaalivestock.com

Volume 66 • No. 2

by LEE PITTS

The CON In Conservation Your Carbon BY LEE PITTS

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fter writing in this space for 40 years, I’ve found that there are three subjects guaranteed to generate hate mail. By far the number one topic of discord is wolves. After one encounter with the subject I even received my one and only death threat (I tend not to write about wolves quite as often as I should). The number two subject of hostility is the NCBA/ Checkoff connection. Believe me, I’ve got a filing cabinet full of letters pro and con and a cauliflower ear from listening to all the callers on both sides of that subject. I’ve written early and often about the third most contentious topic which is conservation easements and I’ve had readers on both sides of the subject accuse me of being for or against them. Initially, I liked conservation easements. I thought they were an ingenious way to preserve ag land and allow ranchers adequate funds so they wouldn’t have to sell out to rich easterners. Or see the land that several generations of their family loved and preserved be paved over by developers. But I’m afraid as time goes by cracks and chinks in the easement’s armor began to show and it’s getting harder and harder to sing their praises when stories like the one that follows keep popping up.

Bad Actors

NEWSPAPER PRIORITY HANDLING

According to the Land Trust Alliance, Inc. “There are a small number of bad actors profiteering off the manipulation of tax

was a certified public accountant who began selling units in his abusive tax shelters as early as 2008 and is now looking at 25 years in prison. James Sinnott, an attorney who joined Fisher in 2013 and oversaw the massive expansion of the tax shelter’s fraudulent deduction amounts claimed from the IRS was sentenced to 23 years. “Using inflated appraisals, backdated documents and other sham actions, these conspirators generated more than $1.3 billion in fraudulent syndicated conservation easement tax deductions.” The DOJ reported that this led to a tax loss to the IRS of over $450 million. And the IRS doesn’t like to “That was the trouble with get cheated explaining with words. out of their fair share! If you explained Fisher’s aswith gunpowder, sistant, Kate Joy, was also people listened.” indicted and remains a fugitive. Fisher was The Department of Justice a pioneer in the conservation Office (DOJ) says Jack Fisher easement industry and he and Sinnott each made millions of incentives intended to encourage charitable gifts of land and conservation easements.” On January 9, 2024, two of these bad actors were sentenced to 25 years and 23 years in prison in a billion-dollar syndicated conservation easement tax scheme. The two men will be spending a lot of time making license plates or hair bridles in prison for crimes arising from their organization, promotion and sale of abusive syndicated conservation easement tax shelters. According to Forbes, “There is also restitution to be paid: $455,855,755 from Fisher and $443,760,035 from Sinnott.”

Columbia Basin’s Odessa Ground Water Replacement Program Affects Many People BY HEATHER SMITH THOMAS

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he U.S. Bureau of Reclamation was created in 1902 to help develop the arid western states. Central Washington’s Columbia Plateau was a perfect candidate for a project—a desert with fertile soil and the Columbia River passing through. Various groups lobbied for irrigation projects. A Spokane group wanted a 134-mile gravity flow canal from Lake Pend Oreille and a Wenatchee group wanted a dam on the Columbia River, to pump water up to fill nearby Grand Coulee, a dry canyon. After thirteen years of debate, President Franklin Roosevelt authorized the dam with National Industrial Recovery Act money, later authorized by the Rivers and Harbors Act of 1935, then reauthorized by the Columbia Basin Project Act of 1943 which put it under the Reclamation Project Act of 1939. The Columbia Basin Project goal was to put 1,100,000 acres under irrigation to attract settlers to farm the land. Construction of Grand Coulee Dam began in 1933 and was completed in 1942. Its main purpose—irrigation--was postponed during World War II in favor of electrical power generation for the war effort. Additional hydroelectric generating capacity was contincontinued on page 4

dollars promoting and selling their tax shelters to wealthy taxpayers. The two men also used fraudulent deductions generated by their tax shelters on their own personal income tax returns to reduce the taxes they owed on the millions earned. “The evidence,” according to the DOJ, “proved that Fisher and Sinnott designed, marketed and sold to high-income clients abusive syndicated conservation easement tax shelters based on fraudulently inflated charitable contribution tax deductions, promising them deductions 4.5 times the amount the taxpayer clients paid to buy the deductions.” In what looks like a snub to the IRS, “Fisher and Sinnott then used the funds raised from their taxpayer clients to buy land through their holding companies and then had those companies donate the land, or a conservation easement over the land, often within days or weeks of the land’s purchase,” said the DOJ. “To reach the inflated fair market value of the donations, Fisher and Sinnott then used appraisals of the conservation

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Feds to Draw Up Plan to Return Grizzly Bears to Idaho, Montana BY MICHAEL DOYLE / GREENWIRE

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rizzly bears could return to the Bitterroot region of Montana and Idaho, under potential plans that will now be scrutinized by the Fish and Wildlife Service. Pressed by environmentalists and a judge’s order, the federal agency announced Wednesday that it will “reevaluate a range of options to restore the grizzly bear” to the area known as the Bitterroot ecosystem. The environmental impact statement will assess options that include designating an “experimental population” of the grizzlies. “We expect that the alternatives could potentially restore a grizzly bear population to the [ecosystem] with varying success and in varying timeframes,” the Fish and Wildlife Service stated. Underscoring the complications ahead, the FWS noted that the potential impacts include those on “fish and wildlife, including grizzly bears, wilderness areas, visitor use and recreational experience, public and employee safety, socioeconomics, and Tribal cultural and related resources.” The grizzly bear is currently designated as threatened under the ESA, though the Fish and Wildlife Service is reevaluating this status. The Bitterroot ecosystem is one of six “recovery zones” identified in a 1993 species recovery plan, meaning it is large enough and has sufficontinued on page 6

Footprint

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e hear a lot about our carbon footprint but so far no one has come up with a formula or algorithm to calculate it. It’s not as easy as just buying a pair of Birkenstocks and trading in your Cadillac for a Smart Car. We’re told that the goal of all of us should be to become “carbon neutral,” or “net zero.” If we don’t, we’re told the ice caps will melt and Polar Bears will have to relocate to Detroit and Los Angeles. San Francisco and Portland will be flooded away. There could be some negative consequences too. The day is rapidly approaching when your carbon footprint score will be more important than your credit score. You’ll try to buy a fossil-powered car and the salesman will be forced to say, “Sorry, we’d like to sell you this car but your carbon footprint is already bigger than Sasquatch’s.” For the first time someone (me) has figured out a way to calculate your carbon footprint. Here’s my formula: Everyone starts out at net zero, in other words, you use up as much carbon as you produce. If your carbon footprint score is less than net zero that’s good, whereas a carbon footprint score larger than net zero means you’re a revolting pariah and socially undesirable. If you drive a Tesla, Volt or Prius you’re off to a good start, provided of course you remembered to plug your car in. Subtract 50 points for every electric car or truck you own despite the fact the electricity it runs on was actually produced by nuclear power or natural gas. If you drive a gas-powered truck with a bed large enough to hold two Smart Cars add 50 points. Also add ten points for every foot your truck is off the ground because it makes the drivers of diminutive electric cars like the Ioniq, Ariya, Lyriq, Lucid, Crosstrek and Euv’s nervous. (For every misspelled electric car you own subtract another 50 points.) If you voted for Donald Trump for President add 100 points to your score. Also add 30 points for every time you stayed in one of his hotels, played one of his golf

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