16 CapitalPress.com
December 9, 2016
‘A good portfolio can buffer farmers from fluctuating commodity prices’
Some
farmers and
ranchers
tend to be
land rich
but cash
poor when
approaching
retirement.
PLANNER from Page 16
annuities to provide retirement
income.
Darrington says some
farmers and ranchers tend
to be land rich but cash
poor when approaching
retirement.
“They need to bank some
of their annual profit and in-
vest that to provide for their
future,” he says. “A good
portfolio can buffer farmers
from fluctuating commodity
prices.”
With an outside financial
planner in place for long-term
retirement, Moss realized he
needed an in-house finan-
cial planner for day-to-day
operations. Ten years ago,
he hired Klade Williams as
chief financial officer.
“You get to a point where
you outgrow the kitchen ta-
ble or home office for book-
keeping,” Moss says.
Williams oversees the
company’s 401K plan, bank
loan applications, account-
ing, human resources and
new rules that will impact
the business financially.
“You take all this in-
formation, even if it’s bad
news, and present it to Dan
and managers to help them
make decisions,” says Wil-
liams. “It’s a balancing act
Klade Williams, chief financial officer at Moss Farms, offers financial advice to managers at the business.
to maintain a financially
healthy business that can
keep the family happy and
employees happy.”
Moss says the 401K has
been a good investment. The
plan, along with paid time off
and paid leave, has fostered
employee loyalty. “A lot of
Courtesy of Bill Schaefer
people at our packing plant
have been there 20 years or
more.”
Workers at the plant, Ar-
rowhead Potato Co., pack
Idaho’s signature crop year-
round for restaurants and food
service companies Sysco and
Markon.
As for his eventual retire-
ment, Moss says he cannot
envision himself being com-
pletely away from the busi-
ness he started in 1980 when
he farmed 160 acres near De-
clo.
His son, Ryan, 42, chief
operations officer, will likely
replace his father as CEO.
“I’ll always be involved
with the farm somehow,”
Moss says.
Estate planning can
help relieve stress
By DIANNA TROYER
For the Capital Press
AgF16-7/#5
When confronting rare and
quirky medical issues, central
Idaho rancher Wiley Smith is
reassured that at least his estate
plans are in healthy condition.
After being diagnosed with
a rare and mutating prostate
cancer in 2009, he and his wife,
Carolyn, discussed the unthink-
able.
“We had to face it,” says
Smith, 78, who owns Mount
Borah Ranch 30 miles north of
Mackay, where he grew up. He
and his sons, Leon and Steve,
raise Hereford cattle, hay and
grain.
“What would become of the
ranch if I passed on, or if we
both did? How could we dis-
tribute our assets fairly among
our five kids?”
For advice, the Smiths
turned to attorney Stephen
Martin of Idaho Falls, who has
written estate plans for agri-
cultural clients throughout the
West since 1974.
“We discussed our goals,”
says Smith, “and he guided us
through the process and provid-
ed us with the legal documents
we needed to do what was
best for our situation. It was a
worthwhile investment for us.”
The family’s estate plan was
especially reassuring in late
summer when Smith was di-
agnosed with a staph infection.
The bacteria entered his blood-
stream at a bruised toenail and
settled in his left knee replace-
ment, requiring intravenous an-
tibiotics every four hours. The
infected knee replacement was
removed in September and was
to be replaced later this fall.
Martin acknowledges that
estate planning can be an emo-
tional experience for all people.
“Think of estate planning as
a way to express the love you
feel for your family members,”
he says. “People sometimes say
business is business and love is
separate, but I do not find that
to be the case at all. Passing on
assets is an expression of love.
However, the love one holds
for one’s child is not the only
factor. One must also consider
financial practicalities as well
as the work and commitment of
various family members.”
He acknowledges the ques-
tions are difficult.
“How do you fairly divide
a family farm or ranch among
several siblings when only one
shows any interest in running
it?”
Martin offers a few tips.
• You do not need to decide
exactly who gets what before
visiting an attorney. An expe-
rienced attorney should be able
to help you solidify your goals
and give you options to obtain
those goals.
• Proper planning can shelter
a family’s assets from federal
estate taxes and reduce income
taxes.
• Some parents say they will
let their kids fight it out, but that
is a terrible idea. Have a plan in
place to avoid conflict.
‘We swap equipment and employees’
RELY from Page 15
AgFi16-2/#6
for more than two decades.
The accountants’ analysis
was crucial several years
ago when Ida-Gold expand-
ed into an existing trucking
company and a precision fer-
tilizer application business
with their joint venture part-
ners Schaeffer Farms, Jones
Farms and Circle G Farms.
“We swap equipment and
employees,” Todd Gerratt
says. “Equipment has be-
come so expensive that we
maximize use by putting
trucks, equipment and em-
ployees wherever they’re
needed.”
When the Gerratts’ grand-
father, Don, started farming
in 1939 south of Burley, the
business was uncomplicat-
ed and bookkeeping was
straightforward. Eventually,
Don passed the business to
his sons, Rex (Dave’s fa-
ther), and Larry (Todd’s fa-
ther).
As Dave and Todd began
managing the business, in-
creasingly complex financial
issues arose, making an ac-
counting firm essential.
“It’s not just the quarter-
ly financial statements that
our clients need to review,”
says Ben Brown, a certified
public accountant at Condie
Stoker who works with the
Gerratts. “New income tax
laws and changing labor
rules affect a business finan-
cially, so a good accountant
has to inform clients of im-
pending changes.”
For example, a new Labor
Department rule concerning
overtime pay for salaried
employees was to take effect
Dec. 1. Employees earning
less than $47,476 annually
were to receive overtime for
the hours they work beyond
40 a week. A federal judge
has put the rule on hold for
the time being.
“The threshold used to be
$23,660,” says Brown, “and
it will affect some of Ida-
Gold’s 100 employees.”