State Line Shopper - February 10, 2020 by Authentic Ag

February 10, 2020

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State Line Shopper

PO Box 118 Phillipsburg, KS 67661 785-533-0104 email: statelineshopper@gmail.com

Reminder to our local farmers... Sales closing deadline is March 16, 2020.

Stop in before the deadline to visit about the options available to you.

Authentic Ag, Inc.

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CoBank Examines Impact of Wal Mart entering Beef Business Walmart officially entered the beef business in January when it opened a case-ready beef plant in Georgia after establishing its own Angus supply chain. The facility is the latest step byw Walmart in its vertical integration strategy for food, according to a new report from CoBank's Knowledge Exchange division. If Walmart's new beef plant and Angus supply chain succeed, it could lead

the retail giant to take another step up the supply chain towards the producer. That could be in the form of harvesting fed cattle or through a joint venture with a current packer. Will Sawyer, animal protein economist with CoBank, says, “We believe their current beef strategy is something of a test, not only for Walmart and its suppliers, but also its customers." The new plant will cut and prepare steaks and roasts produced by Walmart's An-

State Line Shopper

Rural Mainstreet Index Starts 2020 on Solid Ground January’s Rural Mainstreet Index from Creighton University climbed to its highest level since June of 2018. It’s the fifth-straight month the reading has been above growth neutral in the survey of bank CEOs in a ten-state region that relies primarily on agriculture and/or energy. The overall index in January came in at 55.9, up from 50.2 in December. It’s the 11th time in the past 12 months that number has been above 50, which is growth neutral. “Only 17 percent of bank CEOs reported their local economy was in an economic downturn,” says Index chief Dr. Ernie

Goss. “This is better than a year ago, when almost 23 percent of bank CEOs said their local economy was in a recession, or economic downturn.” Don Reynolds is chair of the Regional Missouri Bank, who says, “Farm incomes for 2019 and projections for 2020 aren’t as bleak as we expected.” The farmland and ranchland price index came in below growthneutral for the 73rd time in the past 74 months. While December’s index was 52.8, January’s number fell to 45.6. “Two out of three Nebraska bankers say property taxes on farmland are a significant factor in reducing farm profitability,” Goss says.

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Farmland Sales Pace Picking Up in 2020 The pace of farmland sales is picking up as the calendar heads further into 2020. Sam Kain, area sales manager for Farmers National Company, says the first six months of last year were as slow as he’s seen the land market in recent memory. “The fall months and winter season saw an increase in the pace of land auctions,” Kain says. “The on-going lower supply of land for sale has helped to support land prices. Good quality cropland remains steady to strong.” Farmers National recently sold a tract of land in Iowa for $13,000 an acre, which was way above expectations. “Lower quality land takes more time and effort

to get it sold,” Kain says. “That’s more typical of Wisconsin farms, due to the financial stress of the past few years in dairy. Good quality cropland still sells well in the state, while lower quality land or properties with dairy facilities struggle to sell.” Looking ahead to this year, Farmers National says attention turns to what’s going to have the biggest impact on the farm economy and land market. Producers are optimistic about improvements with China but are now concerned about how soon grain prices might improve given disease outbreaks and world grain trade fluctuations.

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February 10, 2020

State Line Shopper

PAGE 3

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State Line Shopper

February 10, 2020

E15 Sales Reach Record in 2019 Despite Predictions, Liquid-fueled Vehicles Will Remain Prominent in Future A new Renewable Fuels Association analysis found approximately 500 million gallons of E15 were sold nationwide in 2019, setting a new record. RFA says the record proves that the Trump administration’s elimination last summer of an obsolete regulatory barrier is working. However, sales would have been even stronger if not for the RFS compliance exemptions granted by EPA to dozens of refineries. E15 sales in Minnesota—the only state that tracks monthly purchases of higher ethanol blends—in-

creased by nearly a third in 2019, compared to 2018. The review by RFA Chief Economist Scott Richman extrapolated the Minnesota data nationally, finding that 499 million gallons of E15—containing 75 million gallons of ethanol— were sold across the country in 2019. Before 2019, sales of E15 had been prohibited each year during the summer months in areas where conventional gasoline is sold. In May 2019, the EPA allowed E15 to be sold year-round by extending to it the vapor-pressure waiver that was already available for E10 blends.

Several of Sunday’s Super Bowl ads highlighted a surge of electric-powered vehicles, but according to the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2020 (AEO2020) report released January 29 conventional fuel-operated vehicles will dominate the automobile market for the next 30 years. By 2050, EIA predicts that 81% of new vehicles purchased will remain fuel-operated vehicles, a decline of only 13% from 2019. "Contrary to popular belief and the disproportionate number of electric vehicle ads by manufacturers, the overwhelming majority of vehicles purchased in 2050

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will be liquid fueled, ultimately utilizing more environmentally and health conscious biofuels like ethanol," said Renewable Fuels Nebraska Executive Director Troy Bredenkamp. Due to higher ethanol blends and battery electric vehicles, overall energy use is projected to decline by 33% highlighting the positive impact of ethanol and electric vehicles to the environment. Other key takeaways from the report include: EIA projects that the percentage of biofuels (ethanol, biodiesel, renewable diesel, and biobutanol) blended into U.S. gasoline, diesel, and jet fuel in the AEO2020 Reference case will increase from 7.3% in 2019 to peak at 9.0% in 2040. The share of biofuels consumed in the United States rises more in the AEO2020 High Oil Price case as higher prices for gasoline, diesel, and jet fuel make biofuels more

Our next DEADLINE to get your ad in the State Line Shopper is Wednesday, February 12 at noon. Please call: 785-533-0104 or email: statelineshopper@gmail. com

competitive. In that case, the biofuels share rises to 13.5% in 2050. Established in 1977, the U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the

economy and the environment. EIA is the nation's premier source of energy information and, by law, its data, analyses, and forecasts are independent of approval by any other officer or employee of the U.S. government.

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February 10, 2020

Bird Feeding Rachael Boyle Phillips-Rooks District Extension Agent Agriculture and Natural Resources

Winter weather is not only hard on people but can be a life and death struggle for birds. Though birds also require water and shelter, food is often the resource most lacking during cold weather. Many different bird food mixes are available because various species often prefer different grains. However, there is one seed that has more universal appeal than any other: black oil sunflower. If you are new to the bird-feeding game, make sure there is a high percentage of this seed in your mix. White proso millet is second in popularity and is the favorite of dark-eyed juncos and other sparrows as well as the red-winged blackbird. As you become more interested in bird feeding, you may want to use more than one feeder to attract specific species of birds. Following is a list of bird species with the grains they prefer. Cardinals, evening grosbeak and most finch species – sunflower seeds of all types, Rufous-sided towhee – white proso millet, Dark-eyed junco – white and red proso millet, canary seed, and fine cracked corn, Sparrows – white and red proso millet, Bluejay

– peanut kernels and sunflower seeds of all types, Chickadee and tufted titmouse – peanut kernels, oil (black) and blackstriped sunflower seeds, Red-breasted nuthatch – oil (black) and blackstriped sunflower seeds, Brown thrasher – hulled and black-striped sunflower seeds, Red-winged blackbird – white and red proso millet plus German (golden) millet, Mourning dove – oil (black) sunflower seeds, white and red proso plus German (golden) millet. Extended cold periods can also make water unavailable. A heated birdbath can be a tremendous draw for birds during times when all other water is frozen. Energy use is usually less than what most people expect IF the heater has a built-in thermostat. If you would like more information, Chuck Otte, Agriculture and Natural Resources Extension Agent for Geary County has a series of backyard birding guides at http:// gear ycountyextension. com/NRMW.htm .K-State Research and Extension is an equal opportunity provider and employer.

State Line Shopper

Beef Quality Assurance Online Modules Updated to Boost Realism, Ease of Use

Program Takes Advantage of Input from Certified Users Centennial, CO (Feb. 5, 2020) – Building on its updated National Manual launched in Summer 2019, the Beef Quality Assurance (BQA) program has updated its online training modules to make them more realistic and useful. The new modules are now available to those who are first becoming BQA certified online and those who are getting recertified as required after three years. First launched in 2017, the online training modules have been embraced to date by more than 100,000 in the cattle industry. BQA certifications are also available at in-person training events offered through state beef councils, cattlemen’s affiliates, extension programs and other local efforts throughout the country. Funded by the Beef Checkoff, the BQA program touches more than 85 percent of beef produced in the United States today. “The new online modules maintain the program’s integrity and make its lessons more real-life and user friendly,” says Bob Smith, DVM, chair of the BQA Advisory Board.

“They incorporate a wealth of input from people who use the practices every day as well as experts in the field and share them in a way that is practical and understandable. We believe the improvements will make this successful program more enjoyable and an even better learning experience.” The online BQA experience is tailored to each participant by industry sector and interest. After registering, participants are taken through an interactive training module that can be completed online, anytime, with participants starting and stopping training at their convenience without losing progress. Categories for training and certification include Cow-Calf, Stocker, and Feedyard. Online training and certification are available for free and accessible twenty-four hours a day, seven days each week, making it a convenient option for busy farmers and ranchers. To find out more about BQA online certification, go to www.bqa. org/bqa-certification.

PAGE 5

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2020 RAM 1500 Lararmie Crew, CC, Silver $57,045 2020 Jeep Gladiator Sport, CC, Fire Red $45,660 2019 RAM 3500 CC, 4WD, Patriot Blue $56,305 2019 RAM 2500 Tradesman, CC, Red Pearl $64,375 2019 RAM 2500 Tradesman, CC, Granite $64,475 2019 RAM 2500 Tradesman, CC, White $35,500 2019 RAM 1500 Classic CC, Blue, 15K $35,500 2019 RAM 1500 Big Horn Crew, CC, Silver $48,265 2019 RAM 1500 Longhorn Crew, Silver $55,000 2019 RAM 1500 Big Horn, CC, Patriot Blue $49,655 19 Jeep Wrangler Unltd Sahara Ocean Blue $46,420 2019 Dodge Journey Crossroad,AWD, White $22,200 2019 Dodge Charger GT, AWD, 4-dr sedan $26,495 2019 Chrysler Pacifica Limited, Gray, 18K $35,000 2019 Chrysler Pacifica Limited, Gray, 15K $33,500 2019 Jeep Compass Ltd, 4WD, Gray, 12K $25,500 2018 Jeep Compass Latitude, 4WD, Redline $29,330 2018 Chry 300 S V6, AWD, 4 dr., Silver, 21K $26,995 2018 Jeep Compass, 17K $23,300 2017 Chrys. 300 Ltd AWD, Wht, 36 miles $35,935 2016 Jeep Patriot Sport 4WD, White, 81K $17,200 2016 Dodge Grand Caravan SXT, Gold, 45K $16,995 2016 Dodge Charger SXT 4 dr., Black, 25K $20,995 2016 Dodge Charger SXT 4 dr., Silver, 21K $21,995 2014 RAM 2500, Reg. Cab, Black, 151K $22,000 2014 Jeep Gr Cherokee Ltd, 4WD, Silver $18,000 2014 Cadillac Escalade, ESV, AWD, White $29,000 '13 Jeep Grd Cherokee Overland 4x4,101K $21,995 2013 Chevy Silv. 1500 LT Crew 4x4, 113K $20,500 2012 GMC Sierra 1500 SLE Ext. Cab, 91K $17,995 2012 RAM 3500 Longhorn Mega Cab, 64K $43,500 2010 GMC Sierra 1500 SLE Ext Cab, Silver $10,500 2010 Dodge Nitro SXT, Green, 122K $7,000 2007 Dodge Nitro SXT, 4WD, Maroon, 151K $6,000 2006 Chrysler Town & Country Van, 165K $3,500 2006 Chevy Silverado 2500HD,LS 4WD $11,500 2006 Chevy Silverado 1500 LS2, Crew Cab $5,995 2004 Ford F-250 SD, XLT, SuperCab, White $9,200 2002 Chevy Monte Carlo SS, 2dr, Maroon $3,200 2001 Ford Ranger, 199K $4,500 1998 Chevy C/K 1500, Ext. Cab, Silver $1,500

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State Line Shopper

February 10, 2020

Nebraska Agricultural Machinery and Equipment Sales Tax Exemption

By Austin Duerfeldt The Nebraska Department Department of Revenue Nebraska sales and use tax for farmers and ranchers can be a difficult subject. When purchasing or leasing depreciable agricultural machinery and equipment for commercial agricultural use those purchases are listed as exempt from Nebraska and local sales and use taxes. The purchase of a 200- horsepower tractor or a new 12-row planter often is the first to come to mind when thinking of assets that fall into that category. The question that often arises though is what about other items such as a seed tender, auger wagon, or skid steer? For that answer, you have to do research on both the law and the intend-

ed use. The law in Nebraska defines the term of agricultural machinery and equipment as follows: Agricultural machinery and equipment is tangible personal property that is used directly in cultivating or harvesting a crop, raising or caring for animal life, or collecting or processing an agricultural product on the farm or ranch. Nebraska Department of Revenue Information Guide 6-368. Furthermore, agricultural machinery and equipment must be depreciable, which requires a determinable life of longer than one year. The key, which is difficult in some cases, to this definition is the restriction that machinery and equipment must be used directly for the purposes stated above.

of Revenue has provided a great example of this direct-use definition. If you were to purchase a grain storage bin from an Option 1 contractor, parts of that purchase would be taxable and parts of that purchase would be tax-exempt. Items such as auger systems, bin sweeps, stirrators, and fans would all fall under the tax exemption. On the other side though, items such as the electrical control box, ladders, and the grain bin would be taxable. To figure this out, we need to know the intended use of the machinery or equipment. A certain piece of equipment purchased by Farmer A might be taxable while that same piece of equipment purchased by Farmer B might be tax exempt. The Nebraska

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gives an example of such a scenario. If Farmer B purchased a mower to mow hay that will then be fed to livestock, that mower is tax-exempt. If Farmer A purchased an identical mower to mow under a fence line, that purchase is taxable. Compare the intended use to the definition for agricultural machinery and equipment -- It must be used directly in cultivating or harvesting a crop, raising or caring for animal life, or collecting or processing an agricultural product. Farmer B’s use directly fits into that definition. Farmer A’s intended use does not fit that definition. Another prime example is ATVs and UTVs. If you purchased a UTV to be used to apply weed control on crops or feed livestock, that purchase is tax exempt. If you purchased a UTV to be used to check livestock or irrigated pivots, that purchase is taxable. The Nebraska Department of Revenue Information Guide 6-368 referenced earlier has more examples of tax exempt vs. taxable purchases. There is a very fine line between taxable and tax exempt and it is sometimes debatable. There are a few key forms when dealing with sales tax. The first is Form 13. This form is needed when setting up accounts with new vendors to designate the sales tax treatment of your operation. I recommend keeping a handful of Form 13s readily available for use at new businesses or auctions. The second form is Form 7AG-1. With sales and use tax being a tough subject there will be times when you could be charged sales tax on a purchase that should have been sales tax

exempt. Form 7AG-1 provides a process to request a review and refund of a purchase that was taxed and should have been tax exempt. Another point of interest is with auctions. Farm and estate auction items are taxable. Any sale made, supervised, or aided by an auctioneer, or by an agent of the auctioneer, does not qualify as an occasional sale. This includes household goods, personal effects, tools, miscellaneous items, and farm machinery and equipment that are sold at a sale that is conducted, supervised, or aided by an auctioneer. As referenced above, having a Form 13 readily available to the auctioneer will be required if the machinery falls under the sales tax exempt status. In addition to paying sales tax on the winning bid amount, any buyer’s premium, sometimes called a transaction fee, is also taxable. To read

more about Nebraska sales and use tax for auction, please see the Nebraska Department of Revenue Information Guide 6-361. This article barely scratches the surface and for some probably raises more questions than it answers. The Nebraska Department of Revenue provides additional resources to help answer those lingering questions. Short online videos are currently being developed to discuss generalized questions that occur. In addition, by calling 800-742-7474 you can speak with a representative from the Nebraska Department of Revenue to discuss specific machinery or equipment you may have questions about or schedule an appointment to talk with a representative in person.

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Deadline to get YOUR ad in our next issue is 3pm Wed., Feb. 12 Place your ad by phone: 785-533-0104 by email: statelineshopper@ gmail.com

February 10, 2020

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State Line Shopper

NCBA Unveils Top Policy Priorities For 2020

The Executive Committee of the National Cattlemen’s Beef Association (NCBA) approved the organization’s top 2020 Policy Priorities. Approval came at the annual Cattle Industry Convention in San Antonio, Texas. Like last year, NCBA’s top policy priorities include issues related to international trade, proper regulation of fake meat, and regulatory reform, although after a series of significant policy victories in 2019, this year’s priority list is focused on implementing and protecting those gains while further advancing progress into new territory. For example, after helping secure bilateral trade deals with Japan, China, and the European Union, as well as the ratification of the U.S.-Mexico-Canada Agreement, NCBA’s focus this year will turn to implementing those deals, while still expanding access in those markets -- as well as newly changed markets like the post-Brexit United Kingdom. Likewise, after securing proper regulatory oversight of fake meat by the U.S. Dept. of Agriculture and the Food and Drug Administration, NCBA in the coming year will work to build on that successful regulatory framework while also advancing bipartisan legislative efforts like the Real MEAT Act in the U.S. House and Senate to end deceptive labeling of Hwy 24 & 181 • Downs, KS plant-based fake meat. “America’s cattle proDaytime785-454-3931 ducers treEvening 785-454-3720 mendoushaveandmade historic 785-545-6898 progress on the policy 785-454-1038 front over the past year,” said NCBA President Jennifer Houston. “Now it’s time to implement

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and defend those gains and to keep pushing for policies that will help improve conditions for cattle producers so they can better provide the nation and the world with delicious and nutritious U.S. beef.” This year’s priorities include an issue that was a late addition to last year’s list after Congressional introduction of the so-called Green New Deal: climate policy. NCBA plans to “Continue to push back against misguided climate policies while advancing the U.S. cattle industry’s tremendous environmental record, upholding the U.S. cattle industry as the global model for sustainable beef production.” In the year ahead, NCBA also plans to prioritize the importance of cattle markets — specifically promoting “policy that creates markets free from unfair practices and manipulation both in the fundamental markets and the cattle futures markets.” The association will also aggressively pursue final rules on key regulatory issues and defend victories on issues like the Waters of the U.S. (WOTUS) / Navigable Waters Protection Rule, 2020 Dietary Guidelines, Endangered Species Act modernization, Electronic Logging Devices, and comprehensive NEPA reform. “NCBA is a true member-driven organization, and these policy priorities reflect a lot of hard work, debate, and study by a lot of grassroots-level cattle producers who have chosen to get involved in the policy process,” Houston said. “Some folks will always be content to throw stones from the sidelines. NCBA members choose to fight - and win - on the front lines.”

PAGE 7

AFBF, INTL FCStone Partner on Risk Management Tools for Farm Bureau Members The American Farm

Bureau Federation is partnering with INTL FCStone to offer Farm Bureau members exclusive discounts on FCStone’s catalog of agricultural risk management tools. Announced Wednesday, the partnership includes access to a range of customized commodity marketing plans to data management solutions and educational seminars and covers an extensive range of agricultural commodities, from grains and oilseeds to dairy and livestock. AFBF President Zippy Duvall says the partnership "will give Farm Bureau members access to invaluable education and resourc-

es to help them succeed." Through the partnership Farm Bureau members are eligible for ten free trades each year when opening a new account, discounts on subscriptions and fees to attend conferences, along with access to INTL FCStone’s Market Intelligence expertise at reduced rates. AFBF President Duvall

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For more information about any of these jobs, to apply, or to post a job listing for your business, please visit: www.phillipscountykansas.com/jobs call (785) 543-5809 or email: PCED2@ruraltel.net .

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