Celebrating FFA and Nebraska Farm Bureau page 5 APRIL 28, 2017 • VOL. 35 • ISSUE 2 www.nefb.org Farmers/Ranchers Feeling the Pinch of the Farm Economy in Higher Healthcare and Property Tax Costs It’s another growing season as Kent Wayne called Miss Molly’s Coffee House, Lorens prepares for spring planting and and they are members of the Wayne working with his cattle. His farm is nestled County Farm Bureau. Fifteen months ago, in the southwest corner of Nebraska near they welcomed their daughter Evangelyn. Stratton. As he sits at his kitchen table, he They are busy. Just as any typical young thinks about how low wheat prices, higher family, they are constantly balancing work property taxes, and higher health care with family. But it’s hard when tight margins premiums are affecting his budget. in the dairy industry and low commodity “The farm economy is not good. I am not prices put pressure on the family budget. producing any less of a crop or selling less Making cuts is an option, but you must pay cattle; prices are just lower,” Kent Lorens, your health insurance and property taxes. a Hitchcock County Farm Bureau member, “Right now we purchase our own said April 11. He sold fat cattle in 2015 insurance on the individual market with Blue for $2.35 a pound and in 2017 he is looking Cross Blue Shield of Nebraska at a cost of at selling fat cattle for around $1.24 a $700 a month and a $7,000 deductible. The pound or less. yearly cost is about $8,400. This expense is “Right now there is very little margin for second after our house payment. “When things like increasing cost of health care you aren’t making money on the farm side, insurance and higher property taxes. It all it makes it tough to pull money out of your puts a squeeze on our budget,” Lorens said. business for family living expenses. But you COST DOUBLED cannot not have health insurance and you John Temme manages an 800-cow dairy near Wayne and says tight margins in the Kent and his wife Marilyn, are healthy and have to pay your property taxes. It is not an dairy industry and low commodity prices make him think about the rising cost of in their late 50’s. They are self-employed option,” Temme said. healthcare insurance. with only two of their four children on their Kent Lorens is looking for ways to reduce health care plan. They are in the individual his expenses, but there aren’t many options. marketplace with a Blue Cross Blue Shield “Since 2013 my adjusted gross income Bronze plan that costs $1,800 a month with (after taxes) has dropped 45 percent. We a $13,100 family deductible, which is a yearly pay about 1/3 of our income in health cost of $21,600. Eight years ago, (before insurance and almost another 1/3 in Obamacare) the Lorens had all four of their property taxes. It’s by far become the top children on the plan for a lower cost of just two living expenses for our family, and it’s over $12,000 a year with only a $5,000 something we don’t have an option to pay. deductible. The increase has more than The cost just keeps going up, and the plans doubled. keep changing. Next year, because I serve “The farm economy has been weak the as a school board member, I have an option past couple of years, and we have no off- to be a part of the school healthcare plan, farm employment to provide access to which should save us money,” Lorens said. group insurance; it is a problem,” he said. AFFORDABLE CARE ACT The Lorens definitely aren't alone. Both Lorens and Temme checked into Across the state in the northeast corner getting coverage under the Affordable of Nebraska, near Wayne, John Temme Care Act but decided to stick with their and his wife Molly are in their early 30’s. family plan from Blue Cross Blue Shield They manage an 800-cow dairy, which is a of Nebraska. family endeavor. John works alongside his "It (the ACA) was so cumbersome, and father and grandfather. They have interest confusing, and it was hard to make sense of in a Nebraska calf ranch with Molly’s sister and husband, they own a coffee shop in Continued on Page 6 Kent Lorens during harvest last year. Lorens has been farming for more than 30 years. MORE INSIDE Property Tax Reform Update page 6 U.S. Beef Imports to China page 7 Celebrating 100 years of Celebrating Ag Week page 10 Nebraska Farm Bureau New Member Benefit: Yamaha page 12 page 4 2 APRIL 28, 2017 – Nebraska Farm Bureau News Nebraska Farm Bureau News – APRIL 28, 2017 3 COUNTY NEWS The President’s Meaningful Property Tax Reform, Boyd County Farm Bureau Message Relief, Still the Target Supports FFA By Steve Nelson, Boyd County Farm Bureau Secretary President Nebraska status quo when it comes to our tax system; a system that property tax relief and the heavy weight given to income Lorraine Nelson presented plates and syrup Farm Bureau Federation® has left Nebraskans to pay the 7th highest property tax tax cuts in comparison to property tax reductions made to West Boyd FFA President Kelli Mashino rate in the nation and allowed property taxes to account this option less than appealing. to be used at the 2017 FFA Appreciation As I write this column I suspect many of you have for almost half of the combined collections of property, All things said, there is still much work to be done in Breakfast. either started or are anxious to get planting season state sales, and state income taxes in Nebraska. securing property tax reform and relief this session with underway. Mother nature has much to say about how BROKEN TAX SYSTEM time running short. At Nebraska Farm Bureau, we will soon we can get into the fields, but that's clearly the I've written before about the need to fix our tax system continue to plant seeds so we can be in a position to nature of agriculture. Please know I wish the best for so we truly have a more balanced three-legged tax stool. harvest the meaningful reform and relief we're seeking you as you put seeds in the ground to produce this As of this writing, only 20 days remain of the 90 day for our members. We continue to work with senators year's crop. While planting season can be labor intense legislative session and we still have yet to see legislation to make the bills that have been offered better. The Brown County Farm Bureau with long hours involved, the same can be said of the that meets the test of meaningful property tax reform session is not yet over. There is still time for action. Rest Participates in Ag Week efforts of the Nebraska Farm Bureau in our efforts to and relief on the floor of the Nebraska Legislature that assured, the Nebraska Farm Bureau will be there every bring about meaningful property tax reform and relief would bring the balance we are seeking. day working on your behalf to push the right property to Nebraskans. While Nebraskans have repeatedly called for the tax reform legislation across the finish line. Brown County Farm Bureau President, It's often said that nothing worth having comes easy. Legislature and Governor Ricketts to address property For the third year in a row Dawson County Cattlemen and Dawson County Farm Bureau Henry Beel participated in National That is certainly the case when it comes to making taxes, to this point, the best that's been offered on the Until next time, (DCFB) joined forces in cooperation with Tyson Fresh Foods in Lexington to provide beef in Ag week by donating ag books to the structural changes to Nebraska's tax system to lessen floor of the Legislature has been legislation that would all the county schools for one day. Beef pick up took place March 7 with members delivering local library on behalf of Brown County our over reliance on property taxes. We continue to reallocate dollars that are currently used to provide boneless beef rounds for use in the Sumner-Eddyville-Miller, Gothenburg, Eustis-Farnam, Farm Bureau. plant seeds that we believe will help us hit our target. property tax reductions to underwrite a different means Cozad, Lexington and Overton Schools during National Agriculture Week. The meat will Those seeds include working closer with a wide variety of delivering property tax relief. In the end, the property feed 5,309 students in the county. Participating in the joint effort are, (picture above from of partners and coalitions who share our position that tax relief delivered would have been a wash. left) Ywe Wah and Heidi Revelo from Tyson, Taryn Pieper, Rhonda Russman, Shannon something must be done to address our property tax PROPERTY TAX REFORM NEEDED Peterson, Britt Anderson, Don Batie, Bruce Treffer, Kerry Barnes, Derek McConville, Troy problem. Whether it's homeowners, businesses owners, The other legislation that's hit the floor was not only Linn, Mark Albrecht and Pat Margritz all members of Dawson County Farm Bureau. Sherman/Valley County Farm Bureau Sponsors School education interests, individual taxpayer groups or other short on the amount of dollars allocated for property Lunch Program and Food Pantry agricultural organizations, we're working with more tax relief, but would have provided only one dollar in partners than ever before.