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Valley Farmers Fear Return Of Estate Tax

The Fresno Bee
Written by Robert Rodriguez

Published on Tuesday, August 24, 2010

Valley farmers fear return of estate tax

Toll hits asset-rich, cash-poor farms especially hard.

Bill and Carol Chandler have long dreamed of passing down the family's Selma farm to their two sons.

But with a rollback of federal estate taxes set to expire in January, they might have to rethink those plans.

Unless Congress intervenes, their kids would face a tax of up to 55% of the value of the estate, up from 0% this year.

"It is scary," said Bill Chandler, 69. "You plan for so long, and then something comes along that could change it all."

The estate tax has long been a worry for business owners. But it's especially daunting for farmers, who typically are asset-rich and cash-poor. The tax is based on assets.

Tax cuts enacted in 2001 gradually reduced the tax and raised the minimum value of estates that could be taxed. This year, the tax rate dropped to zero.

But on Jan. 1 the tax rate is due to bounce back to where it stood 10 years ago. And the minimum value of estates to be taxed, which had reached $3.5 million last year, will drop to $1 million.

Given enough time to prepare, families can ease the pain by buying life insurance policies or slowly transferring land to children through gifts. And after a death, heirs to a farm can spread the tax payments over 14 years.

But "at the end of the day, you still have to pay that tax," said Curtis Wong, president of Janzen, Tamberi, & Wong, a Fresno accounting firm. "And with farmers who don't have a lot of liquidity, they either have to take out a loan or sell some land."

Tax on the wealthy
Supporters of the estate tax argue that it places the heaviest tax burden on those who can most afford to pay: the wealthy.

The Congressional Budget Office projects that, under current law, federal revenues from estate and gift taxes will be $420 billion, or 1.2% of total revenues, over the 2010-19 period.

But the tax is widely unpopular, and several measures have been introduced in Congress to extend estate-tax relief, either by reducing the rate or deferring the tax.

Farmers are pushing a bill by Sen. Dianne Feinstein that would defer the tax for farmers as long as the land remains in production. With alternative proposals on the table, however, it's unclear whether any of them will be passed to prevent the tax from resuming on Jan. 1.

The Chandlers -- who farm 480 acres of nuts, tree fruit, grapes and citrus -- are preparing for the worst. While the couple has been making gifts of land to their sons, the potential estate-tax bill still is sizable.

The family has identified parcels of land that could be sold to pay the tax, Chandler said. "But that's something we are really trying not to do."

Farm families aren't alone in their concerns about selling land to pay estate taxes. Advocates for farmland preservation say it could accelerate urban sprawl on productive farmland and make it more difficult for the next generation of farmers to survive.

"If that lands sells, who do you think is going to buy it?" said Paul Wenger, president of the California Farm Bureau Federation. "It will be someone who will buy it for speculative purposes."

Especially hard hit
While the estate tax applies to everyone, farmers say it hits their industry particularly hard.

Because the business is anchored in the land, farms usually have higher asset values than do other businesses with comparable cash flow.

A farmer and a retail store owner may make the same amount of money in a given year, but their assets could be very different, said Toni Porter, a partner with the Fresno accounting firm Baker, Peterson & Franklin.

A store's assets -- as in inventory -- turn over very quickly and generally do not accumulate, while a majority of the farmer's assets are in the land.

"A business may have more earning capacity but because they don't have as many assets, their estate tax may be lower," Porter said. "And the estate tax is based on the amount of assets you own at the time of death."

Development pressure creates an added problem for California farmers by raising the value of their land --making their tax bills larger.

Sanger farmer Liz Hudson's family confronted the tax issue nearly three decades ago when her parents and uncle were forced to sell more than 200 of about 300 vineyard acres in southeast Fresno to pay off an estate tax bill.

The farmland was valued as a potential subdivision, increasing the tax bite.

"It just seemed so unfair and painful," Hudson said. "This is money that could have been reinvested back in the community, improving the local community and adding more jobs."

What happens now?

The uncertainty over what Congress may do makes planning difficult.

"I have one client who says his kids have planned for his death in 2010 so they won't have to pay estate taxes," Wong said. "And while I know he is being facetious, it is because Congress has not addressed this issue that people are taking a wait-and-see attitude."

The California Farm Bureau Federation is supporting the Feinstein bill, which would defer the estate taxes for farmers whose farm net income falls below $750,000 annually. The deferral would apply only if the farm is passed down to a family member who has been involved in the operation for at least five years.

Feinstein's bill has been referred to the Committee on Finance. A similar bill was introduced in the House by Rep. Mike Thompson, D-Napa.

Critics of the estate tax -- labeled a "death tax" by some opponents -- say Feinstein's bill doesn't go far enough.

"It is a step in the right direction," said Dick Patten, president of the American Family Business Institute. "But it is not the final solution. The death tax is the problem, and it has to end."

Wenger, of the California Farm Bureau Federation, hopes Congress will act on estate tax reform this year, saying he, too, worries about his own children's future. An almond and walnut grower in Modesto, Wenger has three sons, two of whom are involved in the family's 400-acre farm.

"What I don't want to happen is for my children to have to sell half the land just to pay the taxes," Wenger said. "Because if that happens, there won't be enough of a farm for them to make a living."

The report can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or 559-441-6327.

Raiders, Ruiz Foods Join To Raise Money For Youth

Written by The Business Journal Staff
Thursday, August 26, 2010

The Oakland Raiders and Ruiz Foods will once again partner together this year to raise money for children and families in need in the Central Valley.

The Ruiz 4 Kids organization will sell end zone tickets for Raiders games at a reduced price from $40-45 and for each ticket sold the football team will make a generous donation to Ruiz 4 Kids.

“Both Ruiz 4 Kids and Ruiz Foods appreciate the Oakland Raiders’ commitment to the community,” Kim Ruiz Beck, Ruiz 4 Kids advisor and chairman of Ruiz Foods, said in a press release. “By giving Ruiz 4 Kids this opportunity they are helping make a difference in the lives of children.”

To purchase tickets call (559) 591-5510.

Ruiz Foods is a privately owned corporation with corporate offices in Dinuba.

Regional Jobs Initiative 2010 Annual Report

Regional Jobs Initiative (RJI) was officially launched in January 2004 as an at-will public-private partnership aimed at establishing a “built to last” economy in the Fresno Region––one that could better withstand natural economic downturns and take advantage of seasons of economic expansion.

RJI is based on the idea that regional economies are made up of a series of related industries, or clusters, that benefit one another. Since inception, 12 industry clusters have been formed with significant backing from industry leaders, supporting public agencies, and other partners. The Office of Community and Economic Development at California State University, Fresno, and key staff loaned from participating organizations coordinated leadership for the RJI coalition.

What's next?
Private sector leadership for each industry cluster, while inviting and expecting collaborative participation from the public and not-for-profit sectors. Growing existing businesses and launching new ones. Aligning industry support and resources around advances in education and industry awareness, such as Career and Technical Education, at all levels of academia.

For more information on the 2010 RJI Annual Report, click here .

2010 Cluster Contacts Information, click here .

To Contact the RJI:
Mike Dozier, Chief Operations Officer
Office of Community and Economic Development
California State University, Fresno
5010 N. Woodrow Ave., M/S WC 142
Fresno, CA 93740

Telephone: 559.294.6021
Fax: 559.294.6024
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

So What’s All The iPad Fuss About?

BusinessStreetOnline.com

Tuesday, August 17, 2010

By Tammy Sears – Computer Geek

Some are hooked, some are critics and some have never seen one…what is the iPad fuss really all about? Well, after spending the last two weeks up close and personal with the iPad, I’m here to give you the honest rundown!

This lightweight, slim, simple device with built-in Wi-Fi and easy touch screen packs a punch when it comes to mobility, simplicity and ease of use. Weighing 1.5 pounds, roughly 10” tall and 7.5” wide it comes with a pretty decent sound system. It can even sync data between the Microsoft suite of products. So, if you are not currently an Apple user you can, after a few downloads, sync your iPad with your Windows based computer software.

While the iPad can’t take calls, snap photos, record video or handle Flash Media, it can demonstrate battery life more than any laptop I’ve seen and fit neatly into a moderately sized purse, backpack or briefcase. It has the ability to house many an application, affectionately called “apps”. Whether you are a junior high or college student, running a business or retired, there is an application for the iPad that will educate, assist and even intrigue you!

Where exactly does the iPad fit in with our current gadgets? We’ve all got a cell phone, possibly a laptop and most likely a desktop at our disposal. What are we to do with the iPad? How about touch screen typing, battery life of up to 10 hours, which allows you to read a book while lying on the beach – no cords attached, watch a movie or five on a long flight without having to dig through a thick computer case in the overhead compartment, and be able to head out the door leaving the heavy computer behind.

A few simple buttons around the exterior to handle the screen orientation locking, sound and off/on button and of course, the infamous Apple button on the front side of the screen itself, the iPad is a relatively simple device that is much easier to tote around than a laptop. With the ability to add accessories like the one that allows you to connect to a projector, this may eventually replace the laptop.

I can see what the buzz is about, for me personally the mobility speaks mounds. I’m not sold on the keyboard, for my use of typing large sized documents left me longing for my regular keyboard, and the position of the iPad on my lap or desktop while typing wasn’t comfortable for a long haul and again left me running for the laptop. However, I’m completely sold on the mobility, and loved tucking it into my purse and heading out to appointments with everything I needed in my handbag!

Geek out!

Tammy Sears is the owner of On-Site Computer Training, Database Builders and President of TheWiseProject.org. She can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Follow her Tweets at www.twitter.com/TechTammy.

Sunnyland Mills Celebrates 75 Years!

In 2010, Sunnyland Mills will celebrate its 75th Anniversary as a producer of premium quality whole grain bulgur wheat products. Founded in 1935 by brothers George and Jivon Perch, Sunnyland was purchased in 1976 by two more brothers, Carl and John Orlando. In 1995, the third set of brothers, Mike and Steve Orlando, purchased the company.

Sunnyland Mills began as the Sunnyland Bulghur Company in a small building on Gearhart Avenue in Fresno, California. In those days, whole white wheat was cooked in large iron pots over an open flame and then dried in the hot summer sun. Today, Sunnyland uses the sun to produce 40% of its electrical needs with its own solar ‘farm’ on its property at the current building that was constructed in 1993.

Sunnyland Mills produces whole grain bulgur wheat in five different grinds and whole kernel bulgur. Pearled products include pearled white wheat, pearled durum wheat – Grano and pearled organic white wheat. Sunnyland’s certified organic bulgur is the only organic bulgur produced in North America.

Steve Orlando, President, says: “The lessons we learned from the two prior ownerships are simple and still valid today: Put out a top mike & steven orlando pics_250.jpg quality product, treat our team members as equals and be thankful for loyalty and friendships in our customers.”

Mike Orlando states: “Bulgur wheat is one of the oldest whole grain products known to man. People are recognizing its importance and nutritional value in breads, side dishes and center of the plate entrees. We are blessed as a family and are successful because of the hard work of those who came before us.”

For more information about Sunnyland Mills, their products, solar farm and receipes visit their website at Sunnylandmills.com

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