Ag-Visors

It is a nice summer evening in late June. You and your wife are sitting on your front veranda looking at a herd of cattle you own. A herd whose lineage you can proudly trace back to your great-grandfather. The next morning, you walk back onto your front veranda, coffee-in-hand and you stare in belief: Where is the herd I own? All of the cattle that were there last night are still there but you no longer own them. You have not sold your herd nor has your bank claimed them. No, but overnight, a new state law went into effect declaring that from now on you do not own your animals but, rather, you are their guardian. A new law that abrogates the long recognized law that domestic animals are property that can by owned be individuals and entities.

It is a nice summer evening in late August. You and your wife are sitting on your front veranda looking at a herd of the cattle you own. A herd whose lineage you can proudly trace back to your great-grandfather. The next morning, you walk back onto your front veranda, coffee-in-hand and you stare in belief:  Where is the herd I own? All of cattle that were there last night are still there but you no longer own them. You have not sold your herd nor has your bank claimed them. No, but overnight, a new state law went into effect declaring that from now on you do not own your animals but, rather, you are their guardian. A new law that abrogates the long recognized law that domestic animals are property that can be owned by individuals and entities.

Many people who own livestock farms are full-time professionals in non-farming fields. But another large segment of ranching consists of retired individuals who wish to supplement their retirement income with profits from ranching, farming or raising horses.  The IRS often enough will assess deficiencies against these individuals based on the idea that the activity is simply a means of generating tax write-offs. An example of this was the case of Garbini v. Commissioner, T.C. Summary Opinion 2004-7. This involved  the issue of whether the taxpayers were engaged in an activity for profit in connection with a cattle and horse breeding operation in Myrtle Creek, Ore.

Nineteen years ago I moved to this area and started practicing veterinary medicine. I was amazed at the blinding green and the growth of the grass. I was told by other veterinarians that if I did not know what was making the cattle sick, just blame it on fescue. Well, that sounded like a cheap out, and a disservice to my clients, so I started doing some research.

It’s tough getting started in any career field these days, but farming and ranching presents a special set of challenges. For many just getting started, land is the largest and most expensive investment. Leasing land to get an operation started, or to expand one, is a good option, but before you agree to any obligations be sure you know what you are really agreeing to. These are a few considerations to think about before entering into any agreements to lease land.

It’s tough getting started in any career field these days, but farming and ranching presents a special set of challenges. For many just getting started, land is the largest and most expensive investment. Leasing land to get an operation started, or to expand one, is a good option, but before you agree to any obligations be sure you know what you are really agreeing to. These are a few considerations to think about before entering into any agreements to lease land.

With spring and summer just around the corner, people are starting to feel the dollar pinch from the many expenses spring brings at the farm — horse shoeing, colostrum and milk replacer, supplements, fertilizers and more. The additional costs to running a production agriculture business don’t stop there. Looking ahead, it is time to start making your travel plans for upcoming rodeos, summer county fairs, horse shows, FFA farm sales and auctions.

Farmers, ranchers and horse owners can get significant tax deductions by making noncash charitable contributions of farm property to qualified donees — such as agricultural schools or government programs. This serves two purposes:  One, there is a tax deduction available; and two, by culling unneeded animals or equipment, or even land, this shows the IRS that you are mindful of costs and that you are doing what you can to operate in a businesslike manner — so as to move closer towards making a profit.

Health Savings Accounts (HSAs) are tax advantaged medical savings accounts that offer consumers a different way of paying for health care expenses. HSAs allow you to pay for current health care expenses or save for future health care expenses on a tax-free basis. HSAs are paired with High Deductible Health Plans (HDHPs), which are generally less expensive than traditional health plans. HSAs are especially advantageous to self employed individuals, like small farm operators, who don’t have access to group health plans. Small businesses and farm operations can offer HSAs as an alternative to traditional health plans.

I thought I would continue my chapter on calving and assistance. Last time we had the straps or chains attached. Now we need to know what direction the calf is coming. Are those front feet, with the head right there, or are they rear feet with the calf coming backwards? If you follow the feet up to the next joint it will feel like a knee, which is the front leg, or it will feel like a hock which is a rear leg. When a calf is coming in normal presentation the head should be right behind the front feet or right with it. By knowing what direction the calf is presented you will be able to determine what direction to pull or assist.