Business
AgLife
B
Thursday, August 12, 2021
The Observer & Baker City Herald
Chamber of
Commerce
seeking
marketing
proposals
LIZ
WESTON
ASK LIZ
Tax pro
needed
to assess
property
Photographers, artists
and others are invited
to contribute ideas to
promote Union County
D
ear Liz: My mother, who
will be 101 later this year,
is leaving me real estate
in her trust. The value of it is $4.5
million. She has other assets that
will put her estate over $5 million
when she passes. I currently have
an offer from someone who wants
to buy the real estate. Is it better
for her to sell it now and reduce
the value of her estate? What are
the tax implications if it remains
in her estate until she passes?
Answer: Since 1998, taxpayers
have been able to exempt as much
as $250,000 of capital gains from
the sale of their primary residence
as long as they owned and lived in
the home at least two of the prior
five years. Taxpayers can use this
exemption as often as every two
years.
Clearly, your mom needs to
find a source of good tax advice,
such as a CPA or other tax profes-
sional. If you have the authority
to act on your mother’s behalf
through a power of attorney or
legal conservatorship, then you
should seek the tax pro’s advice as
her fiduciary.
Under current law, if she
retains the real estate it would get
a “step up” to the current market
value as of her death. That means
all the appreciation that happened
during her lifetime would never
be taxed. If she sells now, on the
other hand, she probably would
owe a substantial capital gains tax
bill, even if she uses the exclu-
sion. The tax pro will calculate
how much that’s likely to be.
That tax bill has to be weighed
against the possibility that her
estate could owe taxes. The cur-
rent estate tax exemption limit is
$11.7 million, an amount that will
continue to be adjusted by infla-
tion until 2025. In 2026, the limit
is scheduled to revert to the 2011
level of $5 million plus inflation.
President Biden has proposed
lowering the limit to $3.5 million
and modifying the step up, but
those ideas face stiff opposition in
Congress.
An estate planning attorney
could discuss other options for
reducing her estate if she’s still
with us as 2025 approaches. The
tax pro probably can provide
referrals.
———
Liz Weston, Certified Financial
Planner, is a personal finance col-
umnist for NerdWallet. Questions
may be sent to her at 3940 Laurel
Canyon, No. 238, Studio City, CA
91604, or by using the “Contact”
form at asklizweston.com.
By CARLOS FUENTES
The Observer
Sierra Dawn McClain/Capital Press
Mt. Hood is the backdrop for pear orchards in bloom near Hood River, a popular agritourism destination. Agri-
tourism is on the rise, which many Oregon farmers say is an opportunity to make additional income and expose
urbanites to farm life.
Saddled with risks
Agritourism enterprises are increasing across the
state, but may face zoning, land use challenges
By SIERRA DAWN McCLAIN
Capital Press
SALEM — Agritourism
is on the rise, which many
Oregon farmers say is an
opportunity to make addi-
tional income and expose
urbanites to farm life.
But agritourism carries
risks. Experts say land use
violations, intentional or not,
are common, resulting in
unhappy neighbors and esca-
lating to litigation: “the ugly
side of agritourism.”
“For every farmer or land-
owner that wants to do agri-
tourism, there are 10 farmers
that don’t want to be next
door,” said Jim Johnson, land
use and water planning coor-
dinator at the Oregon Depart-
ment of Agriculture.
Land use violations may
frustrate neighbors, give oper-
ations an unfair advantage
over competitors, raise land
prices and expose farmers to
lawsuits.
In a 2020 study on recent
agritourism-related litigation,
citing several major Oregon
lawsuits, Ohio State Univer-
sity researchers Peggy Hall
and Ellen Essman wrote that
there’s a need for farmers to
better understand “how local
land use laws define and reg-
ulate agritourism before pro-
ceeding with an activity, so
as not to end up in a land use
lawsuit.”
Land use cases typically
center on zoning compliance
and varying interpretations of
“agritourism,” according to
the National Agricultural Law
Center.
Broadly, agritourism is
the crossroads of tourism
and agriculture. Examples
include pumpkin patches,
cut-your-own Christmas tree
farms and dude ranches. But
what about weddings? Win-
eries? Goat yoga?
Johnson, of ODA, said he
thinks “agritourism” is not
defined clearly enough in
Oregon statute.
Counties also create rules,
adding to the complexity.
In Oregon, common com-
plaints include concerns
about tourists and their cars
blocking crucial roadways,
loud events and proposed
recreation areas that would
restrict neighbors from
spraying pesticides. Courts
typically rule in favor of
right-to-farm laws, meaning
agritourism operations often
have to shut down or scale
back certain activities.
Hood River County, a
top agritourism destination,
exemplifies land use conflicts.
Heather Staten, a flower
grower and policy director
at Thrive Hood River, a non-
profit land use advocacy
organization, said she sees
“growing conflict” between
agriculture and tourism.
Producers need to operate
without disruptions, she said;
cars blocking a driveway can
limit a farmer’s ability to
deliver goods on time.
Another common com-
plaint pertains to food and
beverage sales.
Certain farm stands and
wineries, under Oregon
statute, are supposed to
source ingredients primarily
from the farm, but officials
say establishments often
exceed permit limitations and
sell too much food from out-
side sources.
Critics include restaurants
in nearby towns that are sub-
ject to higher taxes and more
regulations.
“Commercially zoned
restaurants may not be able to
compete,” said Johnson.
Some agritourism site
operators, in response, say
they are already over-reg-
ulated and the rules are
arbitrary.
Experts say farmers and
ranchers seeking to diver-
sify their operations under
the umbrella of “agritourism”
should do their research
before implementing new
ideas.
Despite drawbacks, many
industry leaders say agritour-
ism’s benefits outweigh its
negatives.
“Agritourism is a won-
derful way to educate people
and bring them into the world
of farming,” said Susan
Richman, board president of
Friends of Family Farmers.
LA GRANDE — The Union
County Chamber of Commerce
and Union County Tourism Pro-
motion Advisory Committee are
requesting proposals for the cre-
ation and development of visual
marketing assets — such as
photography and videography
— highlighting Union County
and the surrounding area.
The purpose of these assets is
to increase tourism and support
local businesses.
Proposals will be accepted
until Aug. 25.
“We just want to
make sure that we
have a good cat-
alogue, and it’ll
streamline our
workflow, because
we can focus on
Moore-
promoting the area
Hemann
instead of finding
ways to do it,” said Suzannah
Moore-Hemann, executive
director of the Union County
Chamber of Commerce.
The organizers are calling for
proposals from photographers
and artists to develop a year-
long project to create this port-
folio, which would be placed
on the Chamber of Commerce’s
new website and printed on
marketing materials.
The project will be assigned
to one or several creators who
send in proposals.
Some of the tasks in the
project will include capturing
landscape and scenery, others
will showcase Union County
individuals and events.
According to Moore-
Hemann, the chamber and
tourism committee are eager
to receive proposals from local
artists.
“We’re prioritizing local
people,” she said. “If someone
came in from somewhere else
and they were amazing, we
probably wouldn’t say no, but
there’s a lot of amazing local
talent.”
They also hope to receive
multiple submissions in order
to diversify the content that is
created.
“If we get 20 proposals back,
See, Chamber/Page B2
Cattle inventory numbers declining nationwide
Total inventory of all
U.S. beef, dairy cattle on
July 1 was down 1.3%
By CAROL RYAN DUMAS
Capital Press
SALEM — USDA’s mid-year
cattle inventory and cattle on feed
reports were both bullish for cattle
producers, showing year-over-year
declines in cattle numbers.
Total inventory of all U.S. beef
and dairy cattle on July 1 was
down 1.3% to 100.9 million head.
The number of cattle being fed
for slaughter in large feedlots was
also down 1.3% to 11.3 million.
The inventory report also sug-
gests tighter supplies ahead.
While the 2021 calf crop is pro-
jected to be only slightly lower
year over year, the number of beef
cows was down 2% and replace-
ment beef heifers were down
2.3%.
The report also estimated
feeder cattle supplies outside of
large feedlots at 1.6% lower than a
year earlier, with the total inven-
tory in all feedlots, not just large
ones, down 1.5%.
Both of the reports were pos-
itive in direction, and both were
bullish in what was expected, said
Don Close, senior animal pro-
tein analyst with Rabobank. The
industry was anticipating the right
direction, but the decline in num-
bers was more aggressive than the
market anticipated.
“We actually got positive news
for a change,” he said.
The decline in cattle on feed
showed the market is finally
working through the backlog of
COVID cattle. The decline in
overall inventory was more of an
indication of drought in the West,
with producers unwilling to buy
hay at high prices, he said.
Every category in the inventory
report was on the low side, but the
2% decline in beef cow numbers
was a big surprise, Close said.
Cattle markets are already
starting to see some recovery,
with fed cattle trending toward
$130 per hundredweight by
year’s end. That price could
rally to $135 in the spring, he
said. Given the price of feeder
cattle, there’s a slug of calculated
feed yard breakevens at $135 to
$140, even as high as $150 from
some auction prices out there, he
added.
“The prices these guys are
willing to pay for feeder cattle
looks like they’re betting it all to
me,” Close said.
The Chicago Mercantile
Exchange feeder cattle index on
850-weight steers is in the $152
to $154 slot. Fall future prices
are in the low to mid $160 level,
according to Close.
“I think the market’s ahead
of itself, particularly with the
feeding uncertainty and vulnera-
bility in the corn market,” he said.
Given the drought, Close
Baker City Herald, File
Total inventory of all U.S. beef and dairy cattle on July 1, 2021, was down 1.3% to
100.9 million head. The number of cattle being fed for slaughter in large feedlots
was also down 1.3% to 11.3 million.
thinks calves and feeder cattle
are both going to move earlier
this year. The bulk of those cattle
could already have moved by
October and early November. Far-
ther out, a smaller calf crop and
additional cow liquidation could
bring a sizable decline in feeder
cattle outside feed yards a year
from now, he said.