She is the recipient of the Madison County Conservation Farmer of the Year Award and the Super Milk Award. U2dw#K?\]_S&!L2;YC Bill has served on DFAs Corporate Resolutions Committee for 16 years, has been a member of the Ohio Dairy Producers Association for 12 years and joined American Dairy Association Mideast in 2018. At Dairy Farmers of America, we're proud to share the simple pleasures of real dairy straight from our family farms. @AAAA@BCDCBABCBBBBBBBBBBBBBBBBBBBBBCCDCCCCCCCCBBBBBBBBCCCCCCCCCCCCCDDDCCCCCCCCDDDDDDDDEEEEEEEEEEDDDDCCBBBBCDEFDDDCCCCCDDDEEEEEFFFFEEEEFFFFFFFFHHHHHHHHFFFFFFFFFFFFFFFFFFFFEEEEEEEEEEEEEEDDDDCCEEEEEEEEDDEEEEDDCCCCBBBBBBA@?>==@?>=<<<<<< !"" @@@@@@@@@AAABBAA@@AABBAAAA@@AAAAAAAACCCCCCCCCCBBBBCCBBA@@@AA@@AAAABBBBBBBBBBBBBBBBBBABBBBBBAAAABBBBCCCCCCCCCDDDDDDDDDDDDDDDDCCCCCDDDCCCCCBBACCDDDDEEDDDDDDDDDDDDDDDDCCCCCCCCCCCCCCCCCCCDDEEEGGFFFFGGFFFFFFFFGGGGGGGGGGGGGGGGHHGGGGFFGGGFEDDDFFFFFFFFEEEEEEEEEEEEEEEECDDEEDDCCBBBBAAA@@@@@@@@?>======<== ! It is usually more desirable if you can keep from jumping into higher tax brackets which could be avoided by spreading out the sales over two or more years. Liquidating farm assets can complicate the process due to potential tax liabilities that arise when selling farm assets. Since 2008, he served as senior advisor for DFA, providing oversight for varied investments and joint ventures. Randy was elected chairman of DFAs Board of Directors in 2010 and is a member of DFAs Executive Committee. A part of DFAs management team since 2007, he previously served as executive vice president of DFA and president of council operations and Ingredient Solutions. Dennis has an extensive background in banking and finance and has owned various ag businesses. Dairy Farmers of America, Inc. (DFA) operates as a dairy cooperative. DFA's new capital plan that began in January 2020 materially increased retained equity as expected that supports improved FCF when adjusted for capital retains. In his current position, he oversees several departments, includingcommunications,marketing, events and experiences,corporateriskmanagement,ethics and compliance, food safety, quality, andregulatoryservices,governmentand industryrelations, and human resources. Harold and his wife, Bet, a longtime elementary teacher, are the sixth generation on their family farm. Danelle manages DFAs relationships with its lenders, investors and rating agencies. They mean providing opportunities for rural communities to thrive, sharing nourishment to those in need and preserving natural resources for future generations. He also serves on the National Milk Producers Federation board, is vice chairman of American Dairy Association North East and is chairman of the Pennsylvania Dairy Promotion Program board. Jay currently serves on a number of industry leadership groups and company boards. This is generally a lower tax rate than what is paid on ordinary income. On this Wikipedia the language links are at the top of the page across from the article title. Switch your location and language to explore all of our resources. Farm income averaging (Schedule G) can be considered to fill back years lower bracket amounts and possibly keep the current years income from being taxed in higher tax brackets. The sale of younger raised breeding livestock, heifers and bulls, that are less than 24 months of age, are taxed as short-term gain at the ordinary income tax rate and entered in Part II of Form 4797. John has served as vice president of the New Mexico Dairy Producers board and as secretary for DFAs Southwest Area Council, where he has been active on the corporate Fluid Marketing and Public Policy Committee, as well as the hauling, membership, finance and plant committees. All policy, marketing, nutrition and market research activities were regrouped under the newly formed organization, which retained the name "Dairy Farmers of Canada". Long-term capital gains are gains on the sale of assets that were held for more than a year. Dennis serves as president and chief executive officer. ?= !! Chris, his wife, Mary, and son, Stratton, own and operate two Holstein dairies in Fort Morgan, Colo., where they milk 5,600 cows and farm 900 acres. ! Make sure the dairy you buy comes from Canadian farms and supports our farmers. 1250. As chief information officer, Jeff leads the information technology team (IT) and is responsible for the transformation, application implementations, portfolio management, continuous process improvements and program delivery across DFA. The sale of buildings and improvements with a 20-year depreciable life or longer are covered by IRS 26 U.S. Sect. He is also responsible for financial management, reporting and budgetary oversight across the organization, identifying potential risks to the business and providing recommendations for strategies to minimize those risks. Dairy Farmers of Canada, all rights reserved 2022 , Search in Dairy in Canada and Canadian Goodness, Dairy Production Research Funding Program, A Brighter Future Through Energy Efficiency. He is responsible for leading the Legal Department, which handles the legal affairs of DFA, including representation of the company and its subsidiaries and affiliates in transactions, disputes and regulatory matters, as well as providing support to all Area offices, commercial divisions, departments and plants. [13], In 2008, the Dairy Farmers of America and two former executives agreed to pay $12 million to settle Commodity Futures Trading Commission charges for attempting to manipulate the Class III milk futures contract and exceeding speculative position limits in that contract.[14]. These are difficult decisions to make and the process can be daunting. They now milk 700 cows and farm 1,000 acres. The farm also consists of 1,800 acres of crops, a milling company, custom harvesting, custom heifer raising and manure injection businesses. Neil milks 150 cows and farms 160 acres of wheat for hay. Once you have identified your business structure(s) you should develop a detailed balance sheet. He runs Diamond Valley Dairy LLC with his three sons and wife, Sharon. This will allow you to shift to a different type of farm and manage the tax liability while maintaining income and cash flow. The Social Security portion is taxed at a rate of 12.4 percent and is not payable on self-employed income above $132,900 for the 2019 year. He currently holds a leadership position on the Pennsylvania Dairy Promotions Program, and he has received multiple awards from the National FFA Organization. Kristine has been a member of the Minnesota Milk Producers Association, the Minnesota Dairy Leaders Roundtable, DFA Young Cooperators and served as president of Bethany Lutheran Church. WASHINGTON, January 23, 2023 - The U.S. Department of Agriculture (USDA) today announced the details of additional assistance for dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program (PMVAP) and a new Organic Dairy Marketing Assistance Program (ODMAP). Alan, a third-generation dairy farmer, is in a family partnership and milks 7,500 cows on two dairies. They milk 3,800 cows and grow corn and hay on more than 3,500 acres. Run for farmers by farmers, Dairy Farmers of Canada (DFC) is the voice of Canadian dairy farmers. Fresh Milk Jeff, in partnership with his wife and son, manage and make all of the feed for a herd of registered Holsteins on 300 acres. He has also done broadcast radio sports for over 30 years. [4], The Dairy Farmers of Canada "Quality Milk" logo is used to help consumers identify products that contain 100% Canadian milk and Canadian dairy products. On Fair Hope Farms, they care for nearly 200 livestock, milk about 70 cows and manage a broiler operation. MSU is an affirmative-action, equal-opportunity employer. Executive Vice President and Chief Financial Officer, As executive vice president and chief financial officer, Kevin is responsible for all finance and accounting functions, along with information technology and internal audit, and works closely with operating divisions on financial matters. Additionally, the Krebs raise 350 beef cows and 160 sheep. Interest received is taxed at the ordinary income rate. This devastating downturn has led many dairy farmers to consider exiting the dairy business. For 2022, Fitch projects DFA's EBITDA around $540 million, slightly lower than 2021, reflecting inflationary cost pressures. Jennifer works with her parents, brother and three full-time employees on the farm. Member equity/retains. For example, growing crops create a taxable ordinary income for the seller and deductible basis in the crop for the buyer. A particular farm situation may be very different than is discussed in this article. Love Canadian dairy? Another consideration would be to sell significant high value assets with equity in order to pay down debt on the remaining assets, as long as the remaining assets can still provide for a viable business. Any unpaid principal is carried over to a future year and is taxed in the future. They raise all their replacement heifers and grow alfalfa, corn and oats. It is important to identify how you are structured. As president and chief executive officer, Alan leads the executive leadership team to ensure the overall health of DFAs Dairy Brands Division. Dairy Farmers of America. From accountants and HR professionals to food scientists, drivers, on-farm field staff, machine operators and more, our employees each play a critical role in supporting our family farmer-owners. Alan is also a member of DFAs Executive Committee. Greg is a Mideast Area Legislative Committee member and an American Dairy Association Mideast board member. /Width 840 In his current role, Martin is responsible for DFAs global ingredient and food service business. He is also chairman of DFAs Western Area Council and a member of DFAs Executive Committee. They milk on four dairies, approximately 350 cows on each, and raise all of their own replacement heifers. Edward has spent his entire career in the dairy industry and has worked with leading food, beverage and pharmaceutical companies for more than 30 years. This a good option if the remaining debt repayment obligations can be serviced with the income from cropping the land or renting the land. 0000004513 00000 n """"##$$%%%%%%%%%%$%%%&&&&''&&&&'''())****++++,-.///00001111111111110000112333333333333332222234556689:;;:989999::::99999:::::;;<>>>???????????@@@@AABBCCCDDCDDDCCDDDBAAAA@@@@@@@@@@@@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BBBBA@??@AABBAA@AAA@@@@??@AABAAAABCBA@ABAAAAAAAAAAAAAAAABAAAABBCBBBBBBBBBBBBBBBBCCCCCCCCCCCCCDDDCCCCCCCCDDDDDDDDDDDDDDDDDDDCCCCBBBA@@@AADDDCCCCCCCCDDDDEEEEEDDDDDDDDDDDDFFFFFFFFEEEEEEEEEEEEEEEEEEEEDDDDEEEEEEEEDDDCCCCBDDDDDDDDBCCDDCCBBBBBAAAAA@@@?? And because our Cooperative is owned by our farmers, they're personally invested in every product, decision and step we take as an organization. Commissioning operations at MWC will take place over the next eight months and will see the initial 1m pounds of milk per day increase to its designed capacity of 8m pounds per day. Jerrel is active in dairy promotion and other dairy-related boards. %PDF-1.3 She currently sits on the board of The Childrens Place, a non-profit organization providing support to children and families within the Kansas City community that have experienced traumatic events. The sale of purchased breeding stock (heifers, cows and bulls) are covered by IRS U.S. Code Sect. Prior to joining DFA, he served in leadership roles in the area of food safety, quality assurance, regulatory and science for National Milk Producers Federation, International Dairy Foods Association (IDFA) and most recently with SchreiberFoods as vice president of industry and regulatory affairs. She also oversees the Cooperatives innovation efforts, includingDFAs CoLAB Accelerator and investments in ag-tech and dairy food startups. In determining the site for the new facility, St. Johns was selected due to the growing supply of milk in the region, the transportation infrastructure in the region, proximity to customers, and the positive business environment and strong local workforce reputation in the region. The sale price of an asset minus the current tax-basis equals the gain. In 2017, Danelle was recognized in Ingrams magazine 40 Under Forty list. He has been with DFA since 2008, serving in a variety of roles, including DFAs corporate controller, director of internal audit and senior vice president of finance. The farm, Batemans Mosida Farms, started in 1972 with 120 cows. He is also a member of DFAs Executive Committee. /Height 611 The rent income typically can offer needed stable income for years to come. There may be clauses within loan documentation that will allow the bank to call in any debt you owe if they feel that: 1) you are divesting of property the bank may hold in collateral or. %%EOF Danelle serves as DFAs senior vice president of finance and chief treasury officer. The farming operation includes 1,600 acres of wheat, corn and sorghum. We comply with the Federal Trade Commission 1998 Childrens Online Privacy Protection Act (COPPA). Depreciation recapture is deemed ordinary income gain and is taxed at short-term capital gain rates. 683 0 obj<>stream %&%%%%%$$#%%%%%%%%%%%%%&&&%&&&'((()))********+,-//.---./0011111123333333332223333444445555544333344444566788899999::;;;;<>?????>>>?@A@@@@AABCBBBBCCCCCBBBBCCDEEEEFFFFEDDCBAA@???? 1245. Kevin has been in the dairy industry his entire life. Net sales in 2016 were $13.5 billion, representing about 22 percent of raw milk production in the United States. Martin has extensive global experience in the dairy industry, including global operations and manufacturing, customer and government relations and global extended supply chain and optimization across a wide range of cultures and geographies including Asia, the Middle East, Africa, Europe and the Americas. 0000015308 00000 n Randy and his wife, Jan, operate Mooney Dairy in Rogersville, Mo. Even having a straight sale of assets requires planning and negotiating. Buster is also a member of DFAs Executive Committee. Additionally, he serves as secretary of DFAs Board of Directors. He and his family were named DFA Members of Distinction for the Western Area in 2009. Life with DFA; What is a Cooperative; Students and Graduates; . Handyhills milks 120 cows and has 1,000 acres of corn, beans, alfalfa and grass for forage. The Woelbers were named New Mexico Farm Family of the Year in 2014 and were honored with the VIVA Award from the New Mexico Association of Commerce and Industry in 2006. As of Dec. 31, 2020, DFA had not drawn on its $725 million five-year unsecured credit facility that matures in November 2024 with a $250 million accordion feature. We are positioned to move forward, addressing together the challenges of an increasingly dynamic, volatile and global industry. He has served in several farmer-leader roles in the Central Area, including on his Area Resolutions Committee and the Corporate Resolutions Committee. Prior to joining DFA, Andrew practiced law at the international law firm now known as Bryan Cave Leighton Paisner LLP, and began his career at The Boeing Company. The sale of different assets may require coming to an agreement with the other party on how to allocation the sale amount. Any farm sale is inherently complex and the topics are interrelated. Byron has served on Midwest Dairys division board since 1998 and on its corporate board for more than 10 years. She formerly served as a delegate and Southeast Area Young Cooperator Steering Committee member. The Net Investment Tax issue may arise (assuming there is not a change in tax law) when the owner decides to sell assets such as land long in the future. Property used in the trade or business and involuntary conversions. Melvin has been dairying since 1981 on the farm started by his father. ""##$$%%&&%%%%%%%%%$$$$%&&((''''((()**++++***+,-/0..///00001111222222222211234455555555555444444455678889:;;:989999:::::::;;;;;:;;<<<<<<=====>>>>>>????@@@@@@@@AAAABBBBCCBBBCDDEDCBBCDEBBBBAAAAAAAAAAAA@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BBCCBA@@AABBBBAABAAAA@@@? He is also manager for the Greater Southwest Agency board. In addition to his role at DFA, Brent sits on the operations committee for Dairy Cooperative Marketing Agency and Common Marketing Agency. By leading innovative research, providing nutritional education, and promoting healthy living, we work every day to make Canadian milk better. Milk An installment sale is a sale of property where you receive at least one payment after the year of sale. That direct, personal connection to the farm makes each bowl of ice cream even sweeter and that's why This Mark Matters. At Dairy Farmers of America, we're proud to share the simple pleasures of real dairy straight from our family farms. The dairy includes 320 Holsteins and 2,000 acres of rented and owned land. He joined DFA in 2012 and has held various roles, including director of operations and chief operating officer of the Southeast Area. The tax is calculated on the gain and is considered long-term capital gain if the land was owned for more than 12 months. Craig, along with his wife, Katharine, son, Cameron, and daughter, Cali, owns and operates a 550-cow dairy farm. Six robotic milkers and an automatic calf feeder are currently used on the third-generation dairy. The value of all assets need to be agreed upon such as tile, wells, irrigation, buildings, machinery and equipment, livestock, feed supplies, growing crops, etc. We're always looking for new ways to bring the joys of dairy to families like yours. He is also a member of the American Dairy Science Association, Institute of Food Technologists and International Association for Food Protection. And because our Cooperative is owned by our farmers, they're personally invested in every product, decision and step we take as an organization. Breeding cows, bulls and horses are an exception and must be held two years to generate long-term capital gain. Addressed in this article are some critical areas with the major tax consequences if the decision is made to sell a dairy farm. Ivy Lakes Dairy, formerly Hathorn Farms, has been named a Dairy of Distinction by the Northeast Dairy Farm Beautification Program since 1980 and has been recognized by the Empire State Milk Quality Council with the Super Milk Award since 1998. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. 1 0 obj The dairy received the Innovation Center for U.S. Long-term capital gains are gains on the sale of assets that were held for more than a year. How you wind down is dependent on the financial position, strength and liquidity or working capital along with what the creditors will agree to. Raised breeding livestock such as cows and bulls that are older than 24 months of age are assets defined in IRS U.S. Code Sect 1231. It amends the rating for Nestle SA to 'A+'/Stable. He is also a member of DFAs Executive Committee. In addition to his role with DFA, Tim sits on the boards for Dairy Products Institute of Texas, Southwest Cheese and Southwestern Cooperative Marketing Agency. The organization is run for producers, by producers. Andrew joined DFA in 2012 and has since served in various roles within the Legal Department. It is a member of the non-profit Canadian Federation of Agriculture. Valerie currently serves on the Dairy One board of directors, the Cornell University Cooperative Extension Nominating Committee and the Northwest New York Dairy, Livestock & Field Crops of Cornell Cooperative Extension Advisory Group. Jeff serves as chairman of the Mideast Area Council and is on DFAs Executive Committee. Description Mayfield Dairy is a farmer-owned brand of Dairy Farmers of America (DFA), a dairy marketing cooperative owned by more than 12,500 family farmers. ""##$$%%&&%%%%%%%%%$$#$$&&((''''((()*+++++))*+,./0..///00001111222222222222234555555555655554444556788889:;;:989999:::::::;;;;>>>>>?????@@@@@@@@AAAABBBBCBBABBDDEDCBBCDEBBBBBAAAAAAAAAAA@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BCCCBA@@AABBBBAABBAAAA@@?? 0000000016 00000 n John holds leadership positions on the Ohio Dairy Board and the American Dairy Board. He serves as treasurer of DFAs Board of Directors, is a member of the Executive Committee and is chairman of the Northeast Area Council. """""##$$%%%%%%%%%$%&'''&&'&&&&&&'()**++++,+++,,-///0000111111111111////012222222222444333323344566789:;;:989999::::888889999::;;;;:;;<<<<======>>>>????????>>????@@@ABBCBBABBCCCCBBAAAA@@@@@@@@@@@@@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@AAAAA@?>@@AAAA@@@@@@@???>??@@@@?ABCB@@@A@@@@@@@@@@@@@@@@AA@@AABCBBBBBBBBAAAAAAAACCCCCCCCCCCCCDDDCCCCCCCCDDDDDDDDCCCCCCCCCCCCCBBBAAAAABCCDDDCCCCCCCCCDDDDEEEDDDDCDDDDDDDDEEEEEEEEEEEEEEEEEEEEEEEEEEEDDDDCDDDDDDDDCCCCCBBBCCCCCCCCABBCCBBABBBAAAA@@@@@????==;::999999987654445443211111000///..---,,,++**)**))((''((()(('&&%%%%$$$&&%$$$$%%%%$###"!!! If your local Extension has Farm Management agents/educators, they may also be available to help answer some questions, explain the potential issues and provide analysis of the situation. In his current role as chief operating officer of the Southeast Area, Brent is responsible for the overall business operations of the Area. He joined Mid-America Dairymen in 1991 and assumed the position of vice president of contract manufacturing and business development after Mid-America Dairymen merged with DFA. In 2015, Andrew was recognized in Ingramsmagazines 40 Under Forty list, and in 2011, he was included in its 20 in Their Twenties list. DFA also acquired Cumberland Dairy, a processor of ultra-pasteurized dairy products, in 2017. Perry, in a partnership with his wife and parents, milks 3,200 cows. Across hundreds of locations throughout the country, and even a few overseas, we work together to bring our farmer-owners value and nourish families around the world. Keith has more than 30 years of dairy industry experience in various roles, including executive roles at three food cooperatives. Fitch Ratings has placed Dairy Farmers of America, Inc.'s (DFA) Long-term 'BBB' ratings on Rating Watch Negative. . Kristen joined DFA in 2007 as a communicationsassociate and has served in a variety of roles within the communications team. Department of Justice antitrust officials announced a settlement Friday to allow Dairy Farmers of America to buy the bulk of Dean Foods Co.'s milk plants out of bankruptcy, merging the nation's . Our mark matters and it represents the wholesomeness of dairy that we share with our communities and loved ones. 0000002362 00000 n As executive vice president of DFA and president of Dairy Brands North, Pat is responsible for the Central, Mideast and Northeast regions, as well as the divisions cheese and butter businesses and extended shelf-life groups. The variety of creative exit options can be dramatically different from one another depending on your needs, flexibility and the prospective buyers/renters needs and capabilities. Farms with his wife, Holly, and son, Luke. Photos: Milk donation Employees of Remarkable Liquids repackage milk into boxes on Tuesday, May 12, 2020, in Guilderland Center, N.Y. Price Chopper/Market 32 partnered with dairy farm cooperative, Dairy Farmers of America, Garelick Farms and Remarkable Liquids to donate and repackage nearly 5,000 gallons of milk that will then be donated to the Regional Food Bank of Northeastern New York. 22-Oct-2020 at 08:58 GMT, Related tags Thats why DFA is committed to helping where we can through our DFA Cares Foundation, which was created by our family farmer-owners to help meet this increased need. Brian and his wife, Ranell, operate New Generation Dairy with 1,200 cows and farm 3,500 acres, growing corn, beans, wheat and alfalfa. 816-801-6200. Jerrel and his wife, Alma Jean, have been dairying since 1984 on the farm started by her grandfather. He joined DFA in 2000 and has held various roles in the Southwest Area, most recently as vice president, as well as in sales and marketing, and manufacturing ingredients. Doug farms 2,500 acres of corn, soybeans and alfalfa, milks 250 cows and finishes about 2,000 Holstein steers each year with his three sons. 0000004678 00000 n Doug is a recipient of the Proud to be a Nebraska Farmer Award. Many farms may have multiple business structures that own a variety of the assets of the farm. [2], DFA was formed in 1998 through the merger of four dairy cooperatives: the Southern region of Associated Milk Producers Inc.; Mid-America Dairymen Inc.; Milk Marketing Inc.; and Western Dairymen Cooperative Inc.[3] Since then, five other cooperatives have become a part of DFA Independent Cooperative Milk Producers Association, Valley of Virginia Milk Producers Association, California Cooperative Creamery, Black Hills Milk Producers and Dairylea Cooperative Inc.[4][5][6][7] Its headquarters from 1998 until 2017 was near Kansas City International Airport in Kansas City, Missouri. He runs John Wuebker Farm with his wife, Nancy, and their nephews. They have a 400-cow-and-calf beef operation and raise 275,000 chickens. This may not necessarily coincide with the sale of a farm and exiting the business. Stephanie Schoening equity@dfamilk.com. Updated from an original article written by Jim Hilker, Adam J. Kantrovich, John James. Sweet Meadows has been named a Dairy of Distinction by the Northeast Dairy Farm Beautification Program for more than 20 years. The equities and . The last few years have been disappointing for many farmers with decreasing revenue. 0 Kent and his brother operate Herman Dairy Farm, and they are assisted by Kents son, Colby, and son-in-law, Clayton, in milking 450 cows. A follow-up study investigating the impact of such a label revealed that Canadians were willing to pay more money for dairy products that specified using 100 percent Canadian milk products, versus its non-Canadian certified counterparts. Additionally, Larkin raises chickens and peacocks. Gain from disposition of certain depreciable realty. Make sure the dairy you buy comes from Canadian farms and supports our farmers. 1405 N. 98th St. Kansas City, KS 66111 888-DFA-Milk. This new facility in Michigan under the same JV partnership is a continuation of that success., Copyright - Unless otherwise stated all contents of this web site are 2023 - William Reed Ltd - All Rights Reserved - Full details for the use of materials on this site can be found in the Terms & Conditions, Related topics Valerie owns and operates Blumer Dairy with her husband, David. . Bill is an active member of the community, coaching eighth grade basketball.