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Category: Education
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How Farms can Donate Fresh Food for Tax Deductions
Charitable Contributions for Farmers
It is common for businesses to receive tax deductions for cash donations, but did you know that the agriculture community can donate fresh foods for a similar benefit? California farmers and agriculture businesses have the opportunity to donate fresh fruits and vegetables in return for some pretty hefty tax breaks.
How much is the deduction?
In order to calculate the federal deduction and the California credit, your accountant will need to know the cost basis of the donated fruit as well as the fair market value (FMV) of that fruit as of the date it was contributed.
Normally, the federal deduction for inventory contributions is limited to the FMV on the date of contribution or the cost basis of the inventory, whichever is lower. However, there is an enhanced deduction allowed for the contribution of food inventory to a qualified organization that allows for an “above-basis” deduction. This deduction equals the lesser of: (1) the basis of the contributed inventory plus one-half of the ordinary income that would have been recognized if the inventory had been sold for FMV on the contribution date, or (2) twice the basis of the property. As is often the case, there are special rules for certain taxpayers. If you are not using full absorption to account for your inventories, consult with your accountant as special rules will apply.
For farm partnerships, the result of the above calculation would be passed through to the individual partners within the partnership. The deduction is then limited to 15% of their net income from all businesses that made food contributions. This means that their deduction would be limited to 15% of their net income from the farm entity that made the donation. If individual farmers who are also partners in farm partnerships made food contributions to qualified organizations, then the net income of both activities would be added together in determining the 15% limitation. Any unused deduction can be carried over and used in the five succeeding tax years.
California law
Under California tax law, a qualified taxpayer
who donates fresh fruits or fresh vegetables to a food bank located in California is allowed a tax credit equal to 10% of the cost that would otherwise be included in inventory costs. In the case of farm partnerships, the credit would be passed through and used by the individual partners. Any unused credits may be carried forward for seven years. It’s important to note that this credit has expired, however, there is a possibility of extension, so speak with your accountant to learn more.Here’s an example
Partnership A owns a farm that grows fruit. The partnership donates unsold fruit to the local food bank. A determines that the basis of the contributed property is $180,000. A also determines that one-half of the ordinary income that would have been recognized if the inventory had been sold for FMV on the contribution date is $40,000. The deduction would consist of the lesser of: (1) the basis of the property contributed plus one-half the profit = $180,000+$40,000 = $220,000, or (2) twice the basis of $180,000 = $360,000. In this case, the lesser figure of $220,000 would be the enhanced deduction for the food inventory contributed. That deduction would be passed along to the partners of the partnership. The charitable deduction on the partner’s tax returns would be limited to 15% of the income from the partnership that made the food donation.
Please note that if the donated inventory was not included in the opening inventory, but rather was produced during the current year,the donated inventory would be considered
to have zero basis. This means that the enhanced deduction for food inventory would only be $40,000 in the example above, as the $180,000 cost of that fruit would instead be included as part of the cost of goods sold deduction in the current year.If you have questions about charitable food donations or want to learn more about how to claim the deduction, please contact Sensiba San Filippo Partner, John Slater, at 559.437.0700 or at jslater@ssfllp.com.
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Friends of the California State Fair Awarding Over $46,000 In Scholarship Funds
Sacramento, Calif., (November 22, 2017) – The Friends of the California State Fair Scholarship Program is now accepting scholarship applications for the 2018 – 2019 academic year.
The program offers 14 categories of scholarships ranging from $1,000 – $2,500 each with varying eligibility requirements. Categories include: agriculture, art, academic excellence, business, culinary/hospitality/event management, education, international relations, trade school, viticulture and enology.
Applicants may apply for one scholarship category of their choice per year and will be evaluated based on academics, community service, quality of essay and recommendation. Top scholarship winners in select categories may be invited to compete for the $5,000 Ironstone Concours Foundation Scholarship. Scholarships are not renewable; however, students may reapply each year as long as they continue to meet the eligibility criteria.
The Friends of the California State Fair Scholarship Program is a collaboration between the Friends of the California State Fair, the California Exposition & State Fair, the California State Fair Agricultural Advisory Council, the Ironstone Concours Foundation, Blue Diamond Growers and Western Fairs Association. International Scholarship and Tuition Services, Inc. (ISTS), an independent scholarship management company, hosts the online application process and disburses awards for the program.
The deadline to apply is March 2, 2018. Learn more at CAStateFair.org/scholarship. For questions about the Friends of the California State Fair Scholarship Program, please email scholarship@calexpo.com.
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Plant Science Club Wins Fourth President’s Trophy In 6 Years
Fresno, Calif., (November 15, 2017) – The Fresno State Plant Science Club again received the President’s Trophy for beating many of the nation’s top agricultural universities at the recent Students of Agronomy, Soils and Environmental Sciences national club speech contest.
The nation’s top university plant science competition was held Oct. 22 at the Tri-Societies national conference (American Society of Agronomy, Crop Science Society of America and Soil Science Society of America) in Tampa, Florida.
Fresno State claimed similar top honors in 2012, 2014 and 2016 for its presentation about the club’s community service, educational outreach and professionalism in plant, crop and soil sciences.
Other notable universities that competed in the 15-team field included Auburn, Colorado State, Iowa State, Kansas State, North Carolina State, Oklahoma State, Purdue and Texas A&M.
“I could not be more proud of our club members for their representation of our University and California agriculture,” said senior club president Vivien Maier, of Belmont. “The conference was also an incredible opportunity to meet industry leaders and fellow agricultural students and learn more about research being conducted internationally that is tied to our future careers.”
Among the 12 Fresno State students who attended the conference, Maier delivered the team’s PowerPoint presentation.
Three seniors entered research poster competitions: Diana Camarena (Modesto), Jose Delgado (Gonzales) and Briana Quintero (Salinas).
Other students who traveled to the event included seniors Katie Asai (Fresno), Mark Castanon (Fresno), Bibiana Urbina (Monterey), Ricardo Rodriguez Baeza (Mendota), Nancy Valdez (Wasco) and Travis Woods (Woodlake); junior Georgina Reyes Solorio (Livingston); and sophomore Anthony Venegas (Salinas).
Fresno State students also competed in a quiz bowl and crop judging competition and attended research presentations and sessions for career planning, community outreach and grant writing.
Travel expenses for Maier, Reyes Solorio, Valdez were covered by the American Society of Agronomy after they were nationally recognized as a Golden Scholar and Greenfield Scholars in July. Remaining students received funds from Associated Students, Inc., plant science career fair industry sponsors and a private donor.
“We are grateful for all the support that we have received from industry, our community, Fresno State and our department and hope to continue on this path of success for years to come,” Maier said. “Our collective win is another reminder of what can be achieved through the collaborative effort of many passionate and dedicated individuals.”
For more information on the conference, visit www.acsmeetings.org.
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Mechanized Agriculture Lab Renovations Made Possible by Moller Family Gift
Fresno, Calif., (November 14, 2017) – The Jordan College of Agricultural Sciences and Technology at Fresno State showcased initial renovations to its mechanized agriculture laboratory on Tuesday, Nov. 14 that were made possible by a $250,000 gift by Dr. James Moller and his wife, Carol Moller.
The event was attended by University President Joseph I. Castro, Jordan College Dean Sandra Witte, faculty, staff, students, alumni of the mechanized agriculture program and James Moller.
The donation was made in memory of Moller’s father, Leonard Moller, who owned and operated the Acme Machine Shop in Fresno until 1973. The shop was originally started by Herman Moller in the 1920s, and he later co-owned it with his son, Leonard.
James Moller, a University of Minnesota professor emeritus of pediatrics and medicine, grew up in Fresno near the original Fresno State campus. On a visit in September 2016, he saw the laboratory’s traditional but outdated welding and mechanical equipment during a tour led by mechanized agriculture faculty member Ken Heupel.
“Educational institutions, especially state universities and colleges, have pressing financial concerns, and Ken quietly expressed the program’s obvious needs,” Moller said. “The surroundings reminded me so much of my father’s machine shop that I could visualize him there, and it really touched me. Even though I moved away 60 years ago, I wanted to express my appreciation for the educational opportunities that I was afforded as a third-generation Fresnan while helping to create better opportunities for future students, many of whom are training to be educators and key members of the Central Valley ag industry.”
The gift has already provided for a revamped welding area this fall with new multi-processing booths, racks, gas line manifolds, work tables, a computer numerical control (CNC) plasma cutting table and a freshly-painted interior.
Future planned improvements will include new tungsten inert gas (TIG) welders, a hydraulic shear, hydraulic brake, drill press, iron worker, band saw and chop saw equipment, engine stands and metal material storage units.
The mechanized agriculture program in the Plant Science Department is overseen by John Williams, a 2008 Fresno State agricultural education graduate and former student of Heupel’s. Williams has served as a part-time faculty member since January 2015, and he was elevated to full-time faculty after Heupel’s retirement in August.
Heupel had directed the program since 1997, and his 51-year vocational teaching career also included 25 years at Merced College and six years at Manteca High School.
“Thanks to Ken’s hard work and vision, our curriculum is essential in preparing students to safely operate and maintain a wide variety of modern production agriculture equipment,” Williams said. “Students from ag education, plant science, viticulture, industrial technology, ag business and our campus farm develop skills from the hands-on labs that will be essential for the rest of their careers.”
Fresno State is the only California State University campus that offers a mechanized agriculture emphasis for agriculture education majors. Its curriculum includes six classes in small gas and diesel engines, power equipment safety, advanced farm machinery, tractor topics, mechanized agriculture skills and basic agricultural machinery. A permanent fabrication class is also planned so students will get experience building and designing equipment and projects.
The laboratory also provides students with applied learning experience by helping conduct Future Farmers of America high school state judging contests in farm power and machinery, small gas engines and mechanized agriculture.
To discuss potential partnership opportunities to fund further research or academic programs, contact Alcidia Freitas Gomes at alcidia@csufresno.edu or 559.278.4266.
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Attend the Sonoma Grape Expo on Nov. 10
American Vineyard Magazine is pleased to invite grape growers and vineyard consultants to attend the Sonoma Grape Expo coming on November 10th. This FREE bi-ennial Expo will feature an industry trade show, educational grower seminars, and state of wine grape industry addresses by Jeff Bitter from Allied Grape Growers and Todd Azevedo from the Ciatti Company. The USDA-Farm Service Agency and NRCS will also be onsite to answer questions and accept applications for Wildfire Disaster A complimentary breakfast and Tri-Tip lunch will be served. 3 hours of Continuing Education Credits for Private Applicators & PCAs, and 4.5 hours for CCAs have been approved. The Sonoma Grape Expo will be held at the Cloverdale Citrus Fairgrounds from 7:00 a.m. to 2:00 p.m. Learn more about the Sonoma Grape Expo and pre-register here.
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Tree & Vine Expo, Nov. 7th
November has come and growers & PCAs are anticipating the annual Tree & Vine Expo on November 7th at the Stanislaus County Fairgrounds, held by American Vineyard, California Fresh Fruit, and Pacific Nut Producer Magazines. The Expo will feature educational grower seminars, and state of the grape, nut, and tree fruit industry addresses by Jennifer Williams from the California Walnut Board, Kelly Covello from the Almond Alliance of California, Amy Uber for the California Department of Food & Agriculture, and Erica Moyer from Turrentine Brokerage. A complimentary breakfast and lunch will be provided. The expo provides a great environment for the industry to get together, celebrate the harvest, enjoy some good food, gain continuing education credits and network at an industry trade show with over 130 vendors. DPR has approved 4 hours of PCA credits for the expo, including 1 hr of Laws & Regs. Five hours of CCA credits have also been approved (1.5 hr Soil & Water Management, 1.5 hr IPM, 1.5 hr Crop Management, 1 hr Professional Development). Registration is FREE and will begin at 7:00 a.m., and the meeting will conclude at 2 p.m. Learn more about the Tree & Vine Expo and pre-register here.
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Mealybug Management – In or Out of Sync
UC IPM Advisor David Haviland recently shared some tips on mealybug control. The goal is to lower mealybug populations, prevent movement, protect the cluster and keep the vines compatible for biocontrol (especially postharvest). Some insecticides effective against vine mealybug include: Chlorpyrifos (delayed-dormant treatment), Buprofezin (best against crawlers), Spirotetramat (foliar applied/systemic in the phloem and xylem), and Neonicotinoids (some soil, some foliar applied).
Moving into 2018, Haviland recommended growers and PCAs consider how temperature and weather impacts pest populations. “Insect development is often driven by temperature,” he said. “When the temperatures are higher, the mealybugs are more active and develop more quickly. In some springs, temperatures gradually warm up over time, and mealybug development is fairly synchronized. This allows growers to use products or growth regulators geared toward controlling the crawler stage in the spring, and they are very effective when the insects are synchronized in their development stage.”
“But in other years, early season temperatures vary from warming up to cold again with inconsistent weather patterns, and this confuses the pest as they start to develop. This puts them out of synchronization as far as development, leading to all stages of the pest present at the same time in the vineyard. In such a case using a pesticide that goes after one stage of the pest will be much less effective.”
As we never know what the weather will bring, growers and PCAs need to pay close attention to weather patterns and spring mealybug populations to determine the most effective IPM approach to take for successful mealybug management.
David Haviland to speak at Malcolm Media’s Annual Grape, Nut & Tree Fruit Expo Haviland will be presenting his latest research on vine mealybug management through mating disruption technology with sprayable pheromone at the annual Grape, Nut & Tree Fruit Expo coming up on November 14th at the Big Fresno Fairgrounds. The expo will run from 7 a.m. to 2 p.m., and Haviland’s presentation will begin at 10:30 a.m. Growers and PCAs are invited to attend with free admission. Don’t miss Haviland’s presentation, the many other informative grower seminars that will take place. Pre-register for the expo here.
-By Matthew Malcolm, American Vineyard Magazine
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Ag Students Learn to Bottle Wine
Ag Students at Reedley College Learn how to bottle wine for the first time.
The Plant and Soil Science program at Reedley College offers a wide variety of courses that lead to an Associates of Science Degree or Certification. Students enrolled in a plant and soil science course have the opportunity to engage in numerous industry experiences, including: wine making, field trips to local packing facilities and hearing from Ag industry speakers throughout the school year. The Plant & Soil Science program also provides job opportunities during the school year and the summer. Students in the Program run and operate equipment on the campus farm.
Photo by Matthew Malcolm, American Vineyard Magazine