Ag Producers Income Tax
Management Program Set for Dec. 2
A tax management program will be offered to producers and tax preparers from 9 a.m. to noon CST on Tuesday, Dec. 2, at 11 interactive video sites in North Dakota.
The program, sponsored by the North Dakota State University Extension Service and Internal Revenue Service, will feature presentations by Ann Makres, IRS; Steve Eckroth, Eide Bailly, Bismarck; Rhonda Mahlum, Mahlum Goodhart PC, Mandan; Rick Mapel, AgCountry Farm Credit Services, Grand Forks; and Steve Troyer, Eide Bailly, Fargo.
Experts will provide federal income tax updates and tax management alternatives while producers still have time to implement year-end tax management decisions.
Topics include:
* Federal income tax update
* Net investment income surtax and grouping
* Repair expense rules and reporting
* Transition planning
* Health insurance premium tax credits
* Shared responsibility payments
* Affordable Care Act impacts on HRAs and HSAs
* Income deferral and prepaids
* Tax planning ideas for 2014 and beyond
There will be an overview of when to accelerate or defer income in conjunction with expense timing to manage tax liabilities now and for the future. The tax consequences of the Affordable Care Act also will be presented.
Four question-and-answer periods are scheduled during the three-hour program. Preregistration is required because seating is limited. The cost for the program and materials is $15.
Interactive video sites for the program are at Bismarck State College; North Dakota School for the Deaf, Devils Lake; Bottineau County Courthouse, Bottineau; Stark County Courthouse, Dickinson; NDSU, Fargo; County Office Building, Grand Forks; James Valley Career and Technology Center, Jamestown; North Dakota State College of Science, Wahpeton; Broadway Commons, Williston; and NDSU Research Extension Centers in Minot and Langdon.
The program is approved for 3 IRS continuing education provider credits. For additional information or registration, call the NDSU Extension Service in Fargo at (701) 231-8642.
NDSU Hunt Seat Riders
Enjoy Successful Fall Season
North Dakota State University’s hunt seat equestrian team received high honors at two competitions in River Falls, Wis., this fall.
The team tied for the title of high-point team Nov. 1, with Kayla Young, a freshman from Plymouth, Minn., being named the high point-rider for that day. On Nov. 2, the team received the title of reserve high-point team.
On Oct. 11, the team earned the title of reserve high-point team. The following day, the team was named the high-point team, and Alexandra DeFoe, a sophomore from Centerville, Minn., was the reserve high-point rider.
“This team has made me very proud,” says team coach Mattia Gunkelman, “This group of students has put in exceptional efforts this semester, practicing hard and continually striving for more. As a coach, you could not ask for more from your team.”
The team will continue its season next semester.
Spotlight on Economics:
China’s Growing Demand for Meat
Recent studies suggest that total average per capita meat consumption in China could grow from about 60 kilograms in 2010 to nearly 100 kg per person per year by 2030.
By Tom Wahl, Professor
NDSU Agribusiness and Applied Economics Department
China’s rapid economic growth and changing population demographics have affected the world’s most populous country. Driven by income growth, urbanization and a transition to a market economy, the Chinese diet has shifted from staples to meat. Since the 1980s, Chinese grain consumption has decreased by 50 percent while meat consumption has increased by nearly 75 percent in urban areas and by more than 130 percent in rural areas.
This increased meat demand has resulted in significant increases in meat production in China. China continues to lead the world in pork production but also has increased the production of other meats and aquatic products. Much of this increased production has been based upon increased production of soybeans and corn but also on imported soybeans and other feedstuffs.
The demand for meat varies considerably by age, with seniors demanding much less meat than younger populations. China’s one-child policy has skewed its population demographics such that it has a rapidly aging population. As the middle-aged population moves closer to retirement, the younger population will shrink, resulting in relatively more seniors in the future.
Chinese seniors tend to eat a more healthful diet which includes more vegetables and less meat. In addition, because many parents and grandparents live with their children, they tend to influence the family’s eating habits, resulting in less meat consumed at home. Thus, the aging population may have a significant effect on the demand for meat and, hence, the demand for livestock feed, including grain and soybeans in the future.
Recent studies suggest that total average per capita meat consumption in China could grow from about 60 kilograms in 2010 to nearly 100 kg per person per year by 2030. Accounting for the aging population would reduce the projection by up to 5 percent per year.
How will this dramatic increase in meat consumption be met? Chinese meat production likely will expand to meet this demand but will put increasing pressure on feedstuffs and protein supplies. China’s meat imports, particularly high-quality imports destined for the hotel/restaurant trade will likely increase to meet a growing income driven demand.
However, given China’s limited arable land base and irrigation water supplies, it is likely that unless productivity increases dramatically, imports of soybeans and feedstuffs will increase significantly to feed a growing livestock inventory. While the level of China’s imports is debatable, there is likely an opportunity for increased exports of U.S soybeans and feedstuffs.
North Dakota is well-situated to at least partially meet some of this demand with its expanded corn and soybean production base via northwestern ports. However, shipping congestion may limit opportunities, at least in the short run, making gulf exports more viable.
Nevertheless, China’s growing demand for meat will create opportunities in the world marketplace. However, China’s population demographic changes in the next several decades likely will reduce the overall demand for meat.
