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.
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or 717 626 1164