ft-Lancnttr Fanning, Saturday, July 18, 1987 Tax Reform Means Double Taxes For Farmers UNIVERSITY PARK—The Tax Reform Act of 1986 will more than double the federal tax bill of almosthalf of Pennsylvania’s fam ily farms, according to a Penn State study. For 41 percent of the state’s family-owned farms, taxes will increase an average of 132 percent, or $1,343, when the new law is ful ly implemented m 1988, con cluded Larry C. Jenkins, extension economist in Penn State’s Depart ment of Agricultural Economics and Rural Sociology, and William Grisley, formerly of the department. For 45 percent of the farm fami lies, there should be no change in income tax, Jenkins says. Many of these families paid little income tax under the prior law because of a combination of factors, including low earnings, substantial personal deductions, large business deduc tions such as depreciation, and the use of investment credits. A lucky 14 percent will actually pay less tax under the new law, the researchers found. They are not sure what factors are involved in those cases, but believe the larger Dairy Scientist Receives Award SYRACUSE, NY—James E. Nocek of Lafayette, NY, is the recipient of the 1987 Young Scien tist Award sponsored by the North east Section American Dairy Sci ence Association - American Soci ety of Animal Science. Dr. Nocek is the first industry researcher to receive this honor in the 12-year history of the award. He is mana ger, dairy and livestock research, for Agway, Inc., Syracuse, NY. The award was presented July 7 at the association’s regional meeting at the University of Delaware, Newark. Dr. Nocek, 35, was raised on a western New York dairy and grape farm. He received the A.A.S. degree from Alfred State College, Alfred, NY, a B.S. in animal sci ence from Cornell University, and the M.S. in dairy science from The Pennsylvania State University. His Ph.D. in animal science was An-Tech Offers Pregnancy Test PHOENIX, Ariz.—An-Tech International, a Famam Compa nies affiliate, recently acquired the exclusive marketing rights to Open Alert, a bovine progesterone assay test developed by Quidel of La Jol la, Calif. Open Alert is a technologically advanced test to diagnose the reproductive status of lactating cows by measuring progesterone levels in milk. Clinical studies have shown that by using mono clonal antibody methods, proges terone level testing can be more than 94 percent effective in detect ing open cows 21-24 days post breeding. Open Alert uses patented and patent pending tech nology which will verify question able heats and identify open cows, enabling dairy farmers to re inseminate if necessary without losing a cycle. The product is the first 3-step, truly cowside test of its kind speci fically designed to be used by the dairy fanner in the dairy environ ment. Accurate results are obtained within 9 minutes without expensive laboratory testing or additional equipment. Each test consists of two pre-measured vials standard deduction and personal exemptions included in the new law may be responsible. However, 41 percent of the state’s more than 50,000 family farms will pay more in taxes in the wake of tax reform. Jenkins says the increase will vary depending on the type of farm, family size and other factors. The researchers analyzed data from more than 3,000 Pennsylvania single-family farms of all types to predict lax payments. Those dairy farms that pay high er taxes will see their bills go up an average 0f51,305 more per family, an average increase of 159 percent, Jenkins says. Other increases and percent increases for those farms that see increases will be: crops, $1,292 more (88 percent increase); beef, $996 (89 percent); sheep, $695 (67 percent); hogs, $1,543 (116 percent); turkeys/broilers, $2,270 (106 percent): eggs, $3,970 (87 percent); vegetables, $1,114 (185 percent), and fruit, $2,039 (77 percent). For dairy farmers, the most devastating portion of the new tax law is probably the loss of the capi Dr. James E. Nocek obtained in July 1980 from Virgi nia Tech where he was a post- and a chemically treated strip for on each strip for convenient easy-to-use, fast, accurate testing, record-keeping on individual Test results and data can be written cows. An-Tech’s bovine progesterone assay test has been shown to be more than 94 percent effective In detecting open cows 21-24 days post-breeding. tal gain exclusion, Jenkins said. Formerly, farmers who sold cull livestock such as aging dairy cows only had to pay taxes on 40 percent of the sale price. Now, they must pay taxes on the entire amount, adding $3,900 to the taxable income of the average diary farm. For poultry farmers, the loss of investment credits will hurt the most, Jenkins says. Many of them have been expanding in recent years, and were able to deduct 10 percent of the cost of buildings and equipment from tax payments each year. Also affecting tax payments are loss of the two-earner deduction; changes in depreciation regula tions; and changes in the way far mers count expenses they must put into an operation before they see a return on their investments, Jenk ins says. A detailed review of the study on the impact of the Tax Reform Act of 1986 on Pennsylvania Far mers is available by writing to Farm Management Extension, 202 Armsby Building, The Pennsylva nia State University, University Park, PA 16802, or by telephoning (814)865-7656. doctoral fellow, Dr. Nocek joined the Agway research & development depart ment in December 1980. He also serves as an adjunct assistant pro fessor in the department of animal science at the University of New Hampshire. Much of Dr. Nocek’s work is with applied dairy cattle nutrition and management research. He developed a new way to measure non-structural carbohydrate levels in feed stuffs to formulate dairy rations. This resulted m the first ever introduction, in September 1984, of commercial dairy feeds formulated to regulate non structural carbohydrates. Two U.S. patents have been granted as a result of his research efforts and three Canadian patents are pending. Dr. Nocek resides with his wife Patricia and their two children. BUSINESS NE The Model 475 loader can lift 3,600 pounds to z height of 1214 feet. Deutz-Allis Introduces Front-End Loader MILWAUKEE, Wise.—Like an Olympic weightlifter, the new Deutz-Allis Model 475 loader hefts staggering loads into the air with ease. Not only that, but the Model 475 has the muscle to carry those big loads the distance, too. Designed for Deutz-Allis trac tors from 110 through 145 PTO horsepower, the Model 475 can lift a maximum 3,600 pounds to a full height of 12 1/2 feel-in 7.7 sec onds. The loader’s breakout force is 5,600 pounds and carrying capacity at three feet from ground level is 4,700 pounds. The loader features the “Quick Reinforcing Rings Strengthen Wheels WARSAW, Ind. ~ Unverferth Manufacturing, Kalida, Ohio, pro vides 6-, 8-, 9-, and 10-hole rein forcing rings to strengthen or repair the bolt circle on most wheels. The rings are ideal for a wide range of agricultural and industrial wheels, combine wheels, dual wheels, or anywhere heavy use is expected. Unverferth reinforcing rings are made of high tensile, corrosion resistant steel for reliable service and weigh from 211 to 10 pounds. For more information about strengthening wheels with rein forcing rings, contact Unverferth Mfg. Co., Inc., P.O. Box 357, Kali da, OH 45853. Phone 1-800-537-9442. 3 Elected To Soybean Board DOVER, Del. Three Dela ware soybean producers were elected to serve on the Delaware Soybean Board during statewide elections held recently. In New Castle County, Robert Emerson of Middletown was selected by his fellow soybean pro ducers to a three-year term on the Board. In Sussex County, Gary Ockels of Milton was chosen to represent soybean producers on the board. Richard Clendaniel of Lincoln was re-elected to another three year term. The three elected during June on” system which provides for easy attachment or removal in less than five minutes. No tools are required. The Model 475 is equipped with a wide, 3 1/2-inch boom section and 1 1/4-inch-diameter pivot pins for extra durability. For loader hydraulic control, operators have their choice of tractor levers or a single-lever “joystick.” Three bucket widths are avail able: 84, 94 and 104 inches. Options include bucket Quick- Attach for easy “no-tools” changes and grapple fork tines for moving bales and loose material. Unverferth Reinforcing Rings voting join six other soybean pro ducers to make up the Delaware Soybean Board. The Board over sees the collection of the one-cent per-bushel soybean checkoff prog ram in Delaware. Funds from, the checkoff are used for research and market development. ROPE IN SOME EXTRA ° s tft CASH! #