1. Board of Directors
It has been a privilege to serve my second year as Chair of the Beginning Farmer Board. We have had an active and involved Board that has met four times in the past year.
During this past year, our Board was pleased to receive final approval of our rules and regulations. In addition, we developed a standardized application form for both the beginning farmer and the eligible asset owner. We were even more pleased to approve our first two beginning farmer applications.
The staff at the Nebraska Department of Agriculture has worked diligently to publicize and explain the Beginning Farmer Tax Credit Program. There has been increased interest and a number of inquires but, unfortunately, few applications to approve. There is definitely a need for this program as the young farmers in Nebraska continue to be a smaller portion of the over-all farm population. The staff and our Board will continue to publicize the program, but an increase in the tax credit may be necessary to provide the desired results.
Each time I visit with today's farmers and ranchers, they express their concern about the lack of producers who will continue the operations they have built. They want to see someone younger move into their way of life and be successful. The Beginning Farmer Program offers an incentive for them to Share their Strengths in abilities and resources with the future generation by renting their agricultural assets to a qualified beginning farmer and by becoming a mentor.
The Board of Directors have built the Beginning Farmer Program into a workable program that is truly meant to help Nebraska Agriculture. Not only is it encouraging today's farmers and ranchers to cut back or retire sooner, but it benefits them financially to rent to the beginning farmer. The beginning farmers benefit with a chance to rent for three years. As one young man stated, "I want to do this to help my landlord, but it also helps me when I tell my banker I have a three year rental agreement!"
The paperwork has been kept to a minimum while still maintaining complete confidence that the act is followed in every way. In cooperation with the Nebraska Department of Revenue, a certificate and an efficient process has been developed to claim the tax credit on the agricultural asset owners tax return.
The Nebraska Department of Agriculture has added a "Beginning Farmer" link to the home page of their web site (www.agr.state.ne.us). Users will be able to access general information about the Beginning Farmer Program in addition to, the annual report, the Beginning Farmer Tax Credit Act, the regulations, and the application forms.
I have been encouraged by the number of people who really want to help someone get started in farming and ranching and of the number of young people who really want to farm or ranch. Our number of participants will continue to increase as more people learn of the program and the benefits it offers!
| Name | Category | Contact Information | Term |
|---|---|---|---|
| Merlyn Carlson | Director, Nebraska Department of Agriculture |
P.O. Box 94947 Lincoln, NE 68509 (402) 471-2341 |
|
| Greg Ibach Designee |
Deputy Director, Nebraska Department of Agriculture |
P.O. Box 94947 Lincoln, NE 68509 (800) 831-0550 |
|
| Mary Jane Egr | Tax Commissioner, Nebraska Department of Revenue |
P.O. Box 94818 Lincoln, NE 68509 (402) 471-5604 |
|
| Dave Dearmont Designee |
Research Division, Nebraska Department of Revenue |
P.O. Box 94818 Lincoln, NE (402) 471-5604 |
|
| Roy Frederick | Academic Community UNL-Professor, Agricultural Economics |
UN-L East Campus 207 B Filley Hall Lincoln, NE 68583 (402) 472-6225 |
7/16/03 |
| Harry Knobbe | Producer, District 1 Vice President |
596 -15th Road West Point, NE 68788 (402) 372-3073 |
7/16/03 |
| Dale Pohlman | Agricultural Lender, President |
P.O. Box 40 Ravenna, NE 68869 (308) 452-3225 |
7/16/03 |
| Timothy Schram | Producer, District 2 | 14602 S 234th Street Gretna, NE 68028 (402) 332-3625 |
7/16/03 |
| Bill Zutavern | Producer, District 3 | P.O. Box 158 Dunning, NE (308) 538-2244 |
7/16/03 |
| Name | Position | Contact Information |
|---|---|---|
| Marian Beethe | Administrator | PO Box 94947 Lincoln, NE 68509-4947 Phone: (402) 471-6890 |
| Joanne Komenda | Coordinator | PO Box 94947 Lincoln, NE 68509-4947 Phone: 800-446-4071 |
| Meeting Date | Members Attending | Guests | Staff |
| July 18, 2000 Board Meeting |
Mary Jane Egr Dave Dearmont Greg Ibach Harry Knobbe Dale Pohlmann Bill Zutavern |
Dave Goeller, UN-L Beginning Farmer Program Joy Johnson, Center for RuralAffairs Dudley Beyer, NIFA Nebraska Investment Finance Authority |
Marian Beethe Joanne Komenda |
| September 19, 2000 Rulemaking Hearing |
Marian Beethe Joanne Komenda |
||
| October 24, 2000 Board Meeting |
Dave Dearmont Roy Frederick Greg Ibach Dale Pohlmann |
Dave Goeller Joy Johnson |
Marian Beethe Joanne Komenda |
| January 16, 2001 | Merlyn Carlson Dave Dearmont Mary Jane Egr Roy Frederick Greg Ibach Dale Pohlmann Harry Knobbe Timothy Schram Bill Zutavern |
Joy Johnson Jeff Gaertig Legislative Aide to Senator Roger Wehrbein |
Marian Beethe Joanne Komenda |
| April 17, 2001 | Dave Dearmont Roy Frederick Greg Ibach Dale Pohlmann Harry Knobbe |
State Senator Jim Jones District 43 Gary Bredensteiner Nebraska Farm Business Association Dave Goeller Joy Johnson |
Marian Beethe Joanne Komenda |
| Account Code Description | Budgeted Amount | Year-To-Date | % of Budget |
Variance-Favorable (Unfavorable) |
|---|---|---|---|---|
| 4100 Personal Services | ||||
| 4111 Permanent Salaries-Wages | $29,320.46 | $25,269.92 | 85.27 | $ 4,364.08 |
| 4121 Vacation Leave Expense | 0.00 | 1,837.71 | ( 1,837.71) | |
| 4122 Sick Leave Expense | 0.00 | 975.03 | ( 975.03) | |
| 4123 Holiday Leave Expense | 0.00 | 1,364.56 | ( 1,364.56) | |
| Personal Services Subtotal | 29,634.00 | 29,447.22 | 99.37 | 186.78 |
| 4131 Retirement Plans Expense | 2,084.00 | 1,408.62 | 67.59 | 675.38 |
| 4132 OASDI Expense | 2,267.00 | 2,117.39 | 93.40 | 149.61 |
| 4134 Life & Accident Ins. Exp. | 16.00 | 22.80 | 42.50 | ( 6.80) |
| 4135 Health Ins. Exp. | 5,356.00 | 5,554.44 | 103.71 | ( 198.44) |
| 4144 Employee Assistance Prog. | 13.00 | 13.38 | 102.92 | ( .38) |
| Major Account 4100 Total | 39,370.00 | 38,563.85 | 97.95 | 806.15 |
| 4200 Operating Expenses | ||||
| 4211 Postage Expense | 109.00 | 214.20 | 196.51 | ( 105.20) |
| 4212 Communication Expense | 1,225.00 | 581.61 | 47.48 | 643.39 |
| 4214 Data Processing Expense | 1,734.24 | 4,212.28 | 242.89 | ( 2,478.04) |
| 4215 Publication and Print Exp. | 1,503.91 | 1,043.29 | 69.37 | 460.62 |
| 4221 Dues & Subscription Exp. | 50.00 | 36.00 | 72.00 | 14.00 |
| 4222 Conference Registration Fee | 0.00 | 205.00 | ( 205.00) | |
| 4244 Exhibit Space | 50.00 | 0.00 | 0.00 | 50.00 |
| 4278 Rep & Maint-Other Prop | 100.00 | 0.00 | 0.00 | 100.00 |
| 4311 Office Supplies Expense | 0.00 | 49.25 | 0.00 | ( 49.25) |
| 4312 Non-Capitalized Equipment | 0.00 | 1,252.05 | 0.00 | ( 1,252.05) |
| 4331 Household & Instit Exp. | 5.00 | 0.00 | 0.00 | 5.00 |
| 4339 Food Expense | 742.88 | 142.88 | 19.23 | 600.00 |
| 4415 Acctg & Auditing Services | 57.00 | 54.03 | 94.79 | 2.97 |
| 4421 Other Contractual Services | 6,000.00 | 0.00 | 0.00 | 6,000.00 |
| 4483 Worker Comp Premiums | 141.00 | 141.13 | 100.09 | ( .13) |
| Major Account 4200 Total | 11,718.03 | 7,931.72 | 67.69 | 2,716.60 |
| 4700 Travel Expense | ||||
| 4711 Board & Lodging | 896.67 | 291.55 | 32.51 | 605.12 |
| 4716 Meals - Not Travel Status | 0.00 | 228.47 | 0.00 | ( 228.47) |
| 4719 Meals - One Day Travel | 0.00 | 15.00 | 0.00 | ( 15.00) |
| 4741 Personal Vehicle Mileage | 1,583.23 | 1,178.45 | 74.43 | 404.78 |
| 4751 Misc Travel Expense | 100.00 | 41.00 | 41.00 | 59.00 |
| Major Account 4700 Total | 2,579.90 | 1,754.47 | 68.01 | 825.43 |
| 4800 Capital Outlay | ||||
| 4856 Hardware - Data Proc. | 944.05 | 1,664.33 | 176.30 | ( 720.28) |
| 4857 Software - Data Proc. | 0.00 | 97.85 | 0.00 | ( 97.85) |
| 4886 Other Personal Property | 2,000.00 | 0.00 | 0.00 | 2,000.00 |
| Major Account 4800 Total | 2,944.05 | 1,762.18 | 59.86 | 979.52 |
| Budgeted Expenditures Total | $ 56,611.98 | $ 50,012.22 | 88.34 | $ 6,599.76 |
| Program Expenditures Total | $ 56,611.98 | $ 50,012.22 | 88.34 | $ 6,599.76 |
The Beginning Farmer Tax Credit Act has been publicized by newspaper and magazine articles, radio news spots, and trade show booths. As a result, the program has received 114 calls asking for more details about the tax credit. Twenty five of those calls have come from various businesses and organizations who work with farmers, such as banks, accounting firms, and lawyers. Sixty six potential beginning farmers and twenty three owners of agricultural assets have called for applications and information.
Most of the callers appeared to be eligible, but didn't have some one to rent from or to as needed. With the farmers permission, some owners names were given to the potential beginning farmers to contact if they lived in the same area for a possible rental agreement. The applicants who have an eligible rental agreement have until the end of the owners tax year to sign and date the application to receive the tax credit for this tax year.
Applications have been received from five Beginning farmers. Two of them have completed their applications, provided the requested supplemental information, and have received notice of eligibility from the board of directors.
For this fiscal year, the number of owners of agricultural assets claiming tax credits is zero. The monetary amount of credits granted by the Board this year is also zero.
| Inquires Made By: | Number |
| Beginning Farmers | 66 |
| Asset Owners | 23 |
| Other Organizations or Businesses | 25 |
| Total Inquiries | 114 |
| 8 | Dale Carter's Tax Seminars | 1 | Exiting Farming Workshop |
| 8 | Radio/KRVN | 1 | Farm Service Agency Office |
| 5 | Nebraska Farmer Article | 1 | Interest in Legislation |
| 4 | UNL Beginning Farmer Program | 1 | UNL Staff |
| 4 | Staff at Center for Rural Affairs | 1 | Farm Mediation Legal and Financial Clinic |
| 3 | UNL Cooperative Extension | 1 | Brochure in County Treasurer's Office |
| 3 | Beginning Farmer told Asset Owner | 1 | Attorney |
| 3 | Farm Mediation Service Staff | 1 | Phone Book |
| 3 | Husker Harvest Days Booth | 1 | Board Member |
| 2 | Article in Center for Rural Affairs Newsletter | 1 | Senator Hagel's Office |
| 2 | Tax Preparer/CPA | 1 | Gateway Expo |
| 2 | General Press Coverage | 1 | Wayne State College Staff |
| 2 | Friend/Neighbor | 1 | Nebraska Department of Revenue |
| 2 | Regulation Hearing/Commodity Group Mailing | 1 | Banker |
| 1 | Tax Preparers' Clients | 1 | Nebraska Department of Agriculture's Ag Promotions Staff |
| 47 | Unspecified |
Marian Beethe and Joy Johnson presented a workshop on programs for Beginning Farmers at the Center for Rural Affairs annual meeting on November 4, 2001.
On September 23, 2000, Marian Beethe was invited to present a program on the Beginning Farmer Tax Credit at the WIFE annual convention .
Over 150 women from Nebraska farms learned about the Beginning Farmer Tax Credit from Dave Goeller who included the information in a workshop he conducted at the Women in Ag Conference in September.
Dave Goeller included the information on the Tax Credit in a series of workshops for Farm Service Agency personnel statewide.
Dale Carter of the Nebraska Department of Revenue presented information on the new Tax Credit program in a series of seminars he conducted for tax preparers across the state.
Marian Beethe staffed a Beginning Farmer Tax Credit information booth at Husker Harvest Days in September of 2000.
Information on the Beginning Farmer Tax Credit was added to the Nebraska Department of Revenue and the Nebraska Department of Agriculture's web sites.
In March of 2001, Marian Beethe staffed a Resource Room at the Governor's Ag Conference.
Cooperative Extension invited Marian Beethe to present information on the Tax Credit at a workshop for farmers held in Wayne, NE.
In March, Marian Beethe attended the AgrAbility annual conference to provide participants with information on the Tax Credit.
Marian Beethe was invited to be part of a panel discussion following the presentation of the play
"Farm Alarm" in Hastings.
| Date | Publication, Television or Radio Station | Headline | Reporter or Writer |
| July 2000 | NEBRASKA FARMER Magazine |
Beginning Farmers BEGINNING FARMERS HAVE A NEW COACH IN THEIR CORNER The Yearn to Farm What Nebraska offers Linked to the Land |
Don Mc Cabe |
| July 2000 | NEBRASKA
FARMER Magazine |
Leave a legacy What are you doing for the next generation? Editorial |
Joann Alumbaugh, Executive Editor, Nebraska Farmer |
| 7-10-00 | Associated Press Beatrice Daily Sun Hastings Tribune and others |
Keeping young people on the farm | Phillip Brasher Associated Press |
| 9-15-00 | Nebraska Public Television | STATEWIDE Perspective Young Farmers |
Mike Tobias Statewide Correspondent |
| 9-30-00 | Scottsbluff Star-Herald | Help available for beginning farmers WIFE convention in Hastings |
Sandra Hansen Ag Editor |
| Fall 2000 | WIFE Newsletter | WIFE MEMBERS LEARN ABOUT MEDIATION AND BEGINNING FARMER ASSISTANCE | Jacqueline Scott |
| 12-13-00 | KRVN Radio | Phone interview with Marian Beethe | M ike LaPorte |
| 1-7-01 | Lincoln Journal Star | Giving farmers a break State program provides tax breaks to those who help young farmers HOMETOWN Loan helped couple begin farm life |
Art Hovey |
| 1-15-01 | Distributed to Nebraska Radio Stations | Interview with Marian Beethe | Sara Grell Public Information Officer, Nebraska Department of Agriculture |
| 2-23-01 | Kearney Hub Newspaper | Seeds of Change Programs help young farmers such as Overton's Travis Edeal get start | Christy Treffer Hub Regional Correspondent |
| 3-6-01 | F*A*R*M-NET The Farm and Ranch Market Network | Radio interview with Marian Beethe at the Governor's Ag Conference in Kearney | Paul Garthwaite Assistant Farm Director |
| 3-7-01 | News West Point, NE | Retiring, beginning farmers can help each other | |
| 6-30-01 | CENTER for RURAL AFFAIRS Newsletter | Nebraska's Beginning Farmer Tax Credit Program Gets Used A new state program that gives established farmers a tax credit to help beginning farmers is used for the first time | Center Staff |
| 6-30-01 | ne.statepaper.com | Nebraska Beginning Farmer Tax Credit Act | John Fulwider |
" The odds are stacked against beginning farmers. There are capital needs, the inability to get credit because of their financial status.....Owners aren't willing to take the risk of helping beginning farmers who don't have a track record. This bill gives the incentive to these owners to lease to beginning farmers as opposed to established farmers."
"Is it possible that you could be the mentor for a beginning farmer? Will you be the one who opens the door that changes someone's life?Dale Pohlmann, Chair
Beginning Farmer Tax Credit Board
Banker invests in beginnings
Kearney Hub 3-14-00
We encourage you to look into the possibility of participating in these programs because your help is needed.
This is an opportunity for you to leave a legacy."
Referring to the Beginning Farmer Tax Credit Act he sponsored:Joann Alumbaugh, Executive Editor Nebraska Farmer
Editorial, Leave a legacy
Nebraska Farmer, July 2000
Wehrbein said part of his impetus is farming operations that get broken up by generational gaps. "That's extremely common. You know, the family leaves, he has a nice operation there, and yet there's nobody to take it over."
"For the ones who really want to put their hearts and minds and souls into it, this is an opportunity to do it. And they're out there."
"The program is aimed at getting people to be mentors to beginning farmers."Roger Wehrbein, Nebraska State Senator
Giving farmers a break
Lincoln Journal Star 1-7-01
"We're looking for people who really care about the industry and want to see it grow. Both the landowners and the beginners have strengths to help make a better future for both."
"We're hoping this will help us get our foot in the door. It's a little extra incentive for someone to work with us."Marian Beethe, Beginning Farmer Program
Administrator
Help available for beginning farmers
Scottsbluff Star-Herald 9-30-00
Ryan Fisher, 29 year old beginning farmer, Amherst, NE
States trying to keep young people on the farm
Associated Press 7-2000