California Ag Network

Tag: produce donations

  • Bayer Commits $40,000 to Increase Children’s Access to Fresh Produce

    Investment Announced at Barnett Elementary School, as Part of a Salad Bar Donation Ceremony & Melon Variety Taste Test

    Bayer has committed $40,000 to the United Fresh Start Foundation, in support of their mission to increase children’s access to fresh fruits and vegetables. As part of the partnership, Bayer is funding salad bars for eight schools in California and Idaho.

    To promote this collaboration, and one of the new salad bars, the announcement was made during an assembly at Barnett Elementary in Ramona, California.  At the school event, over 50 fourth grade students were introduced to their new salad bar and participated in a melon taste-test.  Students tried several varieties of sweet melons and voted on their favorite.

    “The Ramona Unified School District’s food service team has always done a fantastic job, and the replacement of a new salad bar will create even more excitement amongst our students to select fresh fruits and veggies every day,” said Linda Marthis, Principal, Barnett Elementary School.

    “Our district has always had a commitment to serving fresh produce in our school lunch program,” said Kati Harbor, Director of Food and Nutrition Services, Ramona Unified School District.  “The new salad bar will highlight fresh produce and encourage children to make healthy choices from a greater variety of colorful options.”

    Schools receiving salad bars from the Bayer-United Fresh Start Foundation collaboration, include:

    1. Barnett Elementary School, Ramona Unified School District (Ramona, CA)
    2. James Dukes Elementary School, Ramona Unified School District (Ramona, CA)
    3. Ellwood Elementary School, Goleta Union School District (Goleta, CA)
    4. Foothill Elementary School, Goleta Union School District (Santa Barbara, CA)
    5. Alameda Community Learning Center (Alameda, CA)
    6. Nea Community Learning Center (Alameda, CA)
    7. Blue Oak Charter School (Chico, CA)
    8. Barbara Morgan STEM Academy, West Ada School District (Meridian, ID)

    “Each day more than 30 million U.S. children participate in the National School Lunch Program, an in many communities, schools are the ‘largest restaurant in town.’  By providing children with access to a salad bar at school, they can easily choose from a variety of fresh produce every day, and find what they like best,” said Jennifer Maloney, Food Chain and Sustainability Manager, Bayer. “A salad bar puts a focus on fresh fruits and veggies in the lunch line, and with our recent contributions, we hope children will go home and tell their parents, sparking a conversation about the importance of eating healthy and choosing more fresh fruits and veggies at every meal.”

    Bayer serves as a member of the United Fresh Start Foundation’s Community Outreach Committee, which among other roles, helps foster collaboration between the foundation, schools, and community-based non-profit organizations that are committed to providing children with access to fresh produce.

    “Thanks to companies like Bayer, the United Fresh Start Foundation is continuing to provide salad bars to schools, encouraging children to make healthier food choices every day,” said Tom Stenzel, President & CEO, United Fresh Produce Association and President of the United Fresh Start Foundation.  “We know kids like eating fresh fruits and veggies, and when given the opportunity to make their own selections from a school salad bar, they are learning to take what they want, and eat what they take. Salad bars empower kids to make their own healthy choices, introduce kids to new fresh options, and they are a simple intervention that makes it easy for kids to choose fresh produce at school.”

    To coordinate the salad bar contributions, Bayer worked with the United Fresh Start Foundation, a nonprofit organization affiliated with the United Fresh Produce Association. As part of the foundation’s partnership in the national Salad Bars to Schools initiative, they are working with the produce industry, non-profits and allied businesses to support salad bars to schools across the United States. To date, Salad Bars to Schools has helped facilitate the donation of salad bars to over 5,000 schools in all fifty states, benefitting 3 million children. Bayer’s salad bar investment supports the national initiative.

    Current research indicates that the use of salad bars in schools promotes healthy food choices in school-aged children.  With access to a salad bar, students are encouraged to try new items and are empowered to make their own healthy choices now, and in the future. The Salad Bars to Schools initiative aims to help school districts meet USDA school lunch nutrition standards, which require offering students a wide variety of colorful vegetable choices each week, and which promote a healthier lifestyle for students nationwide.

    Bayer’s commitment to sustainability and agricultural education begins with the people it serves every day. This commitment extends to fighting food insecurity and encouraging healthier food choices for a happier and well-educated community. For additional information and background on Bayer and its other programs, please visit https://www.cropscience.bayer.us/Our-Commitment.

  • 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.