March 2016 New Mexico Farm & Ranch

THE OFFICIAL PUBLICATION OF THE NEW MEXICO FARM AND LIVESTOCK BUREAU®

$1,010 to the Ronald McDonald House Equine Herpes Virus Outbreak Taxing Elk Permits Page 1

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New Mexico Farm & Ranch

March 2016

NMF&LB President’s Column IDEAS AND ELBOW GREASE

BY MICHAEL S. WHITE

Resiliency in Ag What do the Kellogg Foundation, the McCune Charitable Foundation, and the Thornburg Foundation all have in common? Besides being some of the most well-endowed and influential foundations in the U.S., they’re also partners in the Resilience in Ag program initiated by New Mexico First and hosted by the NMSU Extension Service. The Resilience in Ag program is an effort to develop a Statewide Resiliency Plan that will: • Create common ground regarding food and agriculture policies • Generate ideas for more economic value for producers and economic vitality for communities • Develop strategies to support young people who want to stay with or get back into agriculture • Address water, land-use, climate and economic challenges facing the agricultural industry • Support agriculture’s contribution to health related solution of consumers and communities • Contribute to worker, consumer and community welfare

and incorporates industry research. A task force will then be convened to draft a resiliency plan which will be refined through stakeholder sessions. The final plan, expected to be finished by July, will be used to secure funding and the implementation phase is where working groups will measure progress and adapt plan strategies.

As you can see, these initial meetings are not just listening sessions, they’re the beginning of an action plan that will be tied to real money, legislation and regulations. That explains the participation of the above named foundations. And that is also a powerful reason for NMF&LB members to attend and participate. We need your voice to represent conventional farming and ranching. Niche, organic and small scale farms have been well represented at meetings across the state but processors and large scale producers have been largely absent. Here is a list of remaining meetings, and remember, if you’re not at the table, you’re most likely on the menu!

“We need your voice to represent

conventional farming and ranching.”

Statewide meetings are the first step of the plan whereby they receive stakeholder input. The next step is to create a background report which analyzes data from the meeting

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Farmington, Wednesday, March 2, 2016 Crownpoint, Thursday, March 3, 2016 Shiprock, Friday, March 4, 2016 Tucumcari, Wednesday, March 9, 2016 Looking forward to seeing you there!

March 2016

AFBF President’s Column BEYOND THE FENCEROWS

BY ZIPPY DUVALL

Taking Ag’s Message Beyond the Fencerows When I attended my first county Farm Bureau meeting back in 1977, I never imagined that I’d have the privilege to serve as your president one day. My Farm Bureau journey is truly a testament to how this organization invests in young people and gives farmers and ranchers the tools we need to protect our livelihood. One of the greatest joys of Farm Bureau leadership for me has been getting the chance to give back and pass on what I have learned to the next generation.

your fencerows.” My dad encouraged me to attend my first county Farm Bureau meeting, and with the journey that followed, I got a lot farther outside my fencerows than I ever expected. But I have learned over and over again that what my dad said was right: We can’t solve the problems facing agriculture if we’re not willing to step outside our comfort zone.

I am proud of the thousands of Farm Bureau members who are investing their time in this important work. Last year alone, 2,415 Farm Bureau members from across the country took their messages straight to Capitol Hill and met with lawmakers to tackle the issues facing agriculture.

Our state and national staff work tirelessly fighting for you, but representatives want and need to hear from the people in their home districts.

“...representatives want and need to hear

It has certainly been a whirlwind since we all met in Orlando, but there’s no time to waste in keeping up the important work of our great organization. I’ve enjoyed meeting with many of you over the last few months, and look forward to getting out to visit more of our members across the country to hear directly from you about the issues you are facing on your farms and ranches. I’m eager to bring your stories to Capitol Hill and represent U.S. agriculture there, but I’m not the only one our lawmakers want to hear from.

from the people in their home districts.”

The fact is: Farmers and ranchers need to be the ones telling our story or someone else will. We each have been given a voice, but it’s our responsibility to speak up and use it. That’s what my father taught me when I was a young farmer just starting out and complaining about regulations and milk prices. “You’re not going to solve those problems inside your fencerows,” he said. “You’ve got to get outside Page 3

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We also need to get out there and share our stories with consumers. People don’t trust what they don’t know. And they don’t trust agriculture because they don’t understand it.

Most Americans have never been to a farm and didn’t even grow up near one, but they are ready to learn more about where their food comes from. We need to open up the lines of communication. We need to connect through our shared values, explain how we take care of our land and animals, and tell people about the important steps we take to ensure our food supply is safe.

Continued on page 11 March 2016

Spotlight on Valencia County FLB Amy Shields, President “Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore are the founders of civilization” Daniel Webster A challenge we face is the ageing farmer and rancher population of the state, the average age of the farmer and rancher is 60. It is our goal to introduce the public and the youth to the importance of farming and ranching. It’s important for our young people to see that growing food is a viable career that can support a family.

“I have always had a passion for agriculture and believe it is essential for all children to have a deep understanding of where the products they use on a daily basis come from and to have an appreciation for all American farmers” Julie Crum Principal Valencia Elementary School, Ag in The Class Room Representative Valencia County.

Julie comes to us from Lawrence Kansas, where she was raised on a grain crop farm and spent much of her youth on her grandfather’s dairy farm. She showed cattle in 4H and FFA. She graduated from Kansas State University with a degree in Ag. Business and went on to University of Kansas to get her Masters in Educational Leadership, she is currently the Principal at Valencia Elementary School, and has so graciously volunteered her time to lead us with as Ag in the Class Room Program this year. It will be with her knowledge of Agriculture, her understanding and love of education and children, that along with direction of Cheryl Butterfield, Traci Curry and The NMAITC, we will be able to reach out to the elementary schools in Valencia County over the next two years and expand into the Middle and High schools, as well as the SODA Charter School and Belen Family School. We want to introduce the importance of agriculture to every youth in the area.

With this program not only the children will benefit from learning where their food comes from by possibly having a garden right there in their school and having the opportunity to have a hand in the entire process, from planting the first seed to picking that first tomato. It will also be an opportunity for volunteers in the program to experience what goes into bringing food to the table. Teachers will also have access to workshop opportunities’ and educational programs.

We are currently working to build a partnership with Valencia County CES to help with their Food Camp for Kids. A week program slated for this summer that will give kids to participate in the entire step by step process of preparing a meal.

Beginning at the farm and ending at the table.

“What more substantial service to conservation than to practice it on one own land” Aldo Leopold It is that older generation that has cultivated the land, there is a lot to learn from our elders, and we will be taking the youth out to the farms and ranches of this older generation to teach them the importance of respecting the land and being good stewards of the land.

With technology has come change but with farming and ranching there is a way to earn a living that reconnects us with nature that

Amy Shields, Valencia County FLB President visits with Julie Crum at the WLC Food Link event. Growing a school garden at Valencia Elementary.

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March 2016

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March 2016

Valencia County Spotlight cont. allows us to be a part of a system that is larger than ourselves.

Technology has helped us to evolve in the farming and ranching community as well and this is where we will take the youth to meet with that younger generation of farmers and ranchers that have still remained the stewards of the land but have learned how technology can help in the advancement of their livelihood, much like the advancement of a drip irrigation system that can sustain a pecan orchard in a sandy desert.

“Let us not seek the Republican answer or the Democratic answer but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future. “John F Kennedy” As members of the NMFLB and the agricultural community it is imperative that you stay informed and more importantly to help inform and educate the consumer and the voter. There are many challenges facing farmers and ranchers and it effects all consumers it is important that they are aware and educated on how it effects them. We will be working to provide community outreach programs and activities to promote and educate the community about the importance of agriculture.

2016 Brings big changes to Valencia County Farm and Livestock Bureau, new leadership means new direction. It is my desire to not only grow our membership but to reach out to the community and introduce them to NMFLB. This will be a great opportunity to reintroduce our members to what we have to offer them and learn what our members have to offer us, all the while we will be educating our community and our children. I look forward to a wonderful year and meeting and working with all the great educators in this great community.

Women’s Leadership Program Anita Hand, Chair

What a great turn-out we had for our Food Link charity shopping event to benefit the Ronald McDonald House. It is estimated that the $1,010 we spent will last for 6-7 months, feeding over 1,300 people. We appreciate everyone who came to shop and then took a tour of this wonderful facility that provides housing for families who have children in the hospital. How do we earn that money that goes to families in need from across the state? Through fund-raisers such as our quilt raffle. We drew for this year’s quilt at AgFest and Tommy Lucero was our winner. Thank you to all that purchased tickets!

Calling All NMF&LB Families!

We need your help! New Mexico Farm & Livestock Bureau will be celebrating 100 years starting in 2017. We need your historical photos of members, meetings and events for publication in our newsletter. To contribute, please send them to Dalene Hodnett, 2220 N. Telshor, Las Cruces, NM 88011, or scan them to daleneh@nmflb.org Thanks!

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March 2016

Here’s to bringing up the sun.

Here’s to muddy boots and grease-stained hands.

Here’s to caring for this great land.

Here’s to protecting what you live for.

We’re proud of our agricultural roots, and proud to be the insurance company so many families rely on to protect them from the unexpected. Here’s to protecting you and all you do.

www.fbfs.com Farm Bureau Property & Casualty Insurance Company*, Western Agricultural Insurance Company*, Farm Bureau Life Insurance Company*/West Des Moines, IA. *Company providers of Farm Bureau Financial Services FB09 (2-16)

Page 7 • New Mexico1Farm & Ranch NM-Here'sTo...(2-16).indd

March 2016

2/12/16 9:58 AM

GRT and Land Owner Authorizations Joel Alderete, NMF&LB Regional Director Gross Receipts Tax (GRT) on hunting permits, you keep seeing and hearing about it but what is it really about? Unless you’re a private landowner who gets authorizations to manage elk and/or pronghorn antelope on your property, you probably have no idea what is happening (and I guarantee, this affects those who sell over the counter deer hunts on their property, as well as any other species). Many of our members have recently been shocked when they received a letter from the Taxation and Revenue department stating they may owe back taxes (GRT) for nontransferable authorizations they received from the NM Department of Game and Fish to be used on their private property.

When did this happen? Back in June of 2015, I attended the NM Council of Outfitters and Guides (NMCOG) annual convention and this topic was brought up. They had discovered that many of their members didn’t know about the GRT on private authorizations and they were trying to make them aware of their responsibilities regarding the regulations. I sat there and thought I bet our members don’t have a clue about this. When I got home, I sent out a worksheet that the NMCOG had passed out to inform our members about this situation. It was brought up at many meetings and turns out a majority of our people had no clue about it either. This law has been on the books since 1969 and updated in 2012.

In late September 2015, landowners who had been receiving elk authorizations began receiving letters from the New Mexico Taxation & Revenue Department (NMTRD) informing them that they were responsible for GRT on any granting of access for hunting and fishing. In this letter landowners were encouraged to enter into a Managed Audit to save on penalties and interest. If a Managed Audit was not filed by November 19, 2015, landowners “may be subject to a Gross Receipts Tax Audit which includes penalty and interest on any amount of taxes owed.” Landowners who receive Pronghorn antelope authorizations started receiving these same letters this past month.

When people started contacting NMTRD they were informed that back taxes could be collected for up to 7 years past. To Page 8

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March 2016

say the least, our members have been shocked and very upset about this whole situation. First they are being taxed on an item that most probably already pay income tax on. Secondly, many believe, these authorizations help compensate them for raising the State’s elk and pronghorn. These animals eat their vegetation, drink their water and sometimes destroy their farm fields and fencing. So why are they having to pay GRT on them as well?

In a nutshell this is what NM Statute says: 3.2.1.27 PROPERTY. C. Granting the right to hunt is the sale of a license to use. For purposes of this section, granting by a landowner to another, a right to access and hunt within the boundaries of the landowner’s real property is a license to use the real property. A license is a form of property as defined in Subsection J of Section 7-9-3 NMSA 1978 and the receipts from the sale of a license are subject to the gross receipts tax.

Income from selling a right to access and hunt is taxable for both income and GRT. In the end the landowner is responsible for the GRT. So if a landowner sells an elk permit to a hunter for $1,200 and then sells a hunting permit to a family friend for $800. The landowner has taxable income of $2,000.

BUT, if he sells the authorization to a guide and outfitter, the outfitter is then responsible for the GRT and as a landowner (who is still in the end responsible to be sure the GRT is being paid) you must get a Nontaxable Transaction Certification (type 5 NTTC) from the outfitter who on their end will collect the GRT from the hunter. Folks, this includes selling authorizations to GoHunt.com, Cablea’s, etc. You must be sure that GRT is being collected! PERIOD. AND, if the landowner is selling the hunt with a guide, meal, accommodations, etc. They are responsible for the GRT on a portion, if not all, of that too!

Now that most landowners know what they are responsible for, they can for the most part live with that going forward.

The biggest annoyance is the fact that the NMTRD wants to go back 7 years on a tax that land-owners didn’t know they were liable for and frankly may not know exactly how many authorizations were sold 7 years ago, or how many they even had. Sometimes authorizations don’t even get sold and end up in the trash!

So the question remains, should you or should you not do the self-managed audit? We can’t begin to instruct you on how to manage your operations. The law is the law, as unclear as it is. You need to do what is best for you and your operation.

NMFLB is working hard to try and get this situation rectified. We have policy on this issue, #4122 - Gross Receipt Tax – Trespass Fee for Hunting Purposes “We are against a Gross Receipt Tax on income generated from a trespass fee for hunting purposes. (Lincoln 2015).” There is also legislative action being taken. At the time this article is being written, a bill is being proposed that would exempt landowners from the GRT. Unfortunately, it’s odds are not favorable. We will continue to update you and work with our legislators on this issues. However, we realize the Secretary of State has been very clear on her duties, she will pursue this and do her job according to the law. That’s why we’re potentially perusing a legal challenge.

If you have received an assessment, please contact our office at 575-532-4701, we’d like to hear your story.

Images courtesy of the New Mexico Department of Game and Fish

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March 2016

New Mexico Farm & Livestock Bureau offers helping hand through Goliath Relief Fund This was a difficult winter for New Mexico’s farm, ranch and dairy families as a powerful storm caused death and devastation across the eastern portion of the state. “Goliath” brought 80 mile an hour winds and 18 inches of snow the day after Christmas, affecting cattle, sheep and dairy herds.

“Agricultural families stick together and help one another out in difficult times,” says Mike White, President of New Mexico Farm & Livestock Bureau. “There are families experiencing significant financial hardship as a result of the storm so we created a Cares fund.” New Mexico Farm & Livestock Bureau Cares offers monetary aid for agricultural families affected by the storm.

“Not only do farmers, ranchers and dairymen need to replace the animals that were lost to the storm, they also need to rebuild barns and fences that were demolished by the high winds,” says Chad Smith, NMF&LB CEO. “That makes it harder to pay for medical expenses or utility bills. We just want these folks to know that we’re there for them and we have resources to help.”

Individuals and county farm bureaus are contributing to the fund in an effort to support their neighbors. Donations are tax-deductible and 100 percent of proceeds go directly to help families impacted

by Goliath. To support the Cares fund, checks can be made payable to NMF&LB and sent to 2220 N. Telshor, Las Cruces, NM 88011, attn.: Cares Relief Fund.

Agricultural families in need can download an application form at www.nmflb.org. Applications will be accepted until May 1st, monies will be distributed beginning June 1st.

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March 2016

Grazing Fees See Major Increase; Projected Revenue Reaches a Record of Nearly $11 Million New Mexico State Land Office The New Mexico State Land Commissioner Aubrey Dunn announced that the grazing fee for the coming year is set to increase by 24.74 percent. The increase will raise the total income from grazing on state land to a projected $10.84 million.

State Trust Lands included in the agricultural leasing program are approximately 8.8 million acres with 3,500 leases, in 32 of New Mexico’s 33 counties.

The 2015 grazing fee on State Trust Land was $4.80 per animal unit month (AUM) that took effect on Oct. 1, 2015. The 2016 grazing fee will be $5.99 per AUM, taking effect on Oct. 1st of this year.

The current fee formula, which was established and implemented following various hearing and economic studies in 1988 by then New Mexico State Land Commissioner Humphries, takes into account various factors from multiple sources, such as current private grazing land lease rates by western livestock ranchers, beef cattle prices, and the cost of livestock production.

“With the trust receiving less revenue because of declining oil prices this extra income from grazing fees is helping curb the shortfall in money flowing to our beneficiaries, which are mainly the public schools of New Mexico,” said Commissioner Aubrey Dunn. He added, “The grazing lessees are the stewards of New Mexico’s State Trust Lands, they are our eyes and ears. Grazing lessees also help provide water for not only livestock but for native populations of wildlife throughout the state. I want to thank our grazing lessees because without them the Land Office alone could not manage our trust lands.

We would have to hire more employees for proper management, which in turn creates a higher budget request and diminishes revenue distributions to beneficiaries.”

Since Commissioner Dunn took office in January of 2015 grazing fees have increased by forty-five percent. With the new fee an estimated $19.5 million will be received to benefit State Land Trust beneficiaries.

The State Land Office is responsible for administering 9 million acres of surface and 13 million acres of subsurface estate for the beneficiaries of the state land trust, which includes schools, universities, hospitals and other important public institutions.

Beyond the Fencerows, continued from page 3 And there’s one other thing consumers need to hear about: How unjust regulation is making our lives so difficult. We know many of our members are afraid to speak openly about their battles with the EPA, Army Corps and others. We also know the media can be our ally in these struggles – if only we speak up and let journalists tell our story in the first place.

Being an advocate for agriculture is not an easy job, but thankfully farmers are used to hard work. And more than that, we’re not afraid of a challenge. Step outside your fencerows. We must be faithful with our opportunities today if we want to preserve our freedoms for tomorrow.

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March 2016

Get Ready For An UnBEElievable Year!

“Bee the One” with the 2016 NM Ag Literacy Project!

Everyone is abuzz about this year’s Ag Literacy Project! Take the time to visit a classroom in your community. We provide everything you need thanks to support from Wells Fargo Bank, NM FFA, and NM Farm & Livestock Bureau!

Thank you to our new Ag in the Classroom Advocates!

Tom JacksonCibola/ McKinley Amy Jackson- Colfax Janelle Duffy- Curry Melinda Jackson- Chaves Kara Cochran- Sierra Sandy Hyatt- Luna Martha Stewart- Grant

Volunteer Packet Includes: •Book: The Beeman •Educator’s Guide with lessons •Pollinator poster •Bee Ag Magazine •Burpee Bee Garden Seeds

“The Future Depends On What We Do In The Present!”

Mahatma Gandhi

Thank you for helping us grow!

Reminder:NMF&LB Foundation Board Meeting April 14-15 in Las Cruces

National Ag in the Classroom Conference: June 22-24, 2016 Wigwam Resort,Litchfield Park, AZ Visit agclassroom.org for conference details and registration!

Don’t miss your chance! This conference will inspire and help local educators and volunteers see how easy, fun, and important it is to implement agriculture into classrooms. The conference will not be this close to New Mexico or this affordable for at least another 8 years so now is a prime time to attend. Conference news: Alamogordo middle school teacher,Annette Joyner, has been named a recipient of a White- Reinhardt Fund for Education Scholarship from the American Farm Bureau Foundation that will help her attend the conference.

Thank you to Al & Cheri Porter for sponsoring Carlsbad teacher & YF&R member Tessa Ogden.

She will receive a $500 scholarship to attend this conference!

Melinda Jackson,our Chaves County Advocate, will be presenting. Don’t miss her presentation, “The Quest for the Whole Enchilada”!

For more information or request a classroom visit contact: Cheryl Butterfield at agclass1@nmflb.org or Traci Curry at agclass@nmflb.org!

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New Mexico Farm & Ranch

March 2016

Farm Credit of New Mexico has been farmer and rancher owned since 1916.

We’ve provided loans, insurance and other financial tools to help generations of New Mexicans succeed. And in turn, we’ve returned $77.8 million in profits to our members since 2005, including more than $8.7 million in 2015 alone.

Call 1-800-451-5997 or visit www.FarmCreditNM.com Page 13

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New Mexico Farm & Ranch

March 2016

Non-profit Organization U.S. POSTAGE PAID Las Cruces, N.M. Permit No.2093

P.O. Box 20004 Las Cruces, NM 88004-9004

RETURN SERVICE REQUESTED

NEW MEXICO FARM & LIVESTOCK BUREAU Since 1917 . . . a Leader in New Mexico

ISSN 0028-6192 2220 N. TELSHOR BLVD. • LAS CRUCES, NM 88011 575.532.4700 • FAX: 575.532.4710 PUBLISHER: New Mexico Farm and Livestock Bureau New Mexico Farm & Ranch is published monthly. Yearly subscription is $24.00.

New Mexico Farm and Livestock Bureau members receive a complimentary subscription with yearly dues.

U.S. Postage PAID, bulk rate, PERMIT #31, Las Cruces, NM 88001. FORWARDING/RETURN POSTAGE GUARANTEED, ADDRESS CORRECTION REQUESTED. OFFICERS Michael White President, Dexter Craig Ogden 1st Vice President, Loving Larry Reagan 2nd Vice President, Ft. Sumner Page 14

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New Mexico Farm & Ranch

Chad Smith Chief Executive Officer BOARD OF DIRECTORS Bud Deerman, La Mesa Jim Ellett, Hope Duane Frost, Claunch Anita Hand, Datil Gary Hathorn, Flora Vista Leon Hemann, McDonald Jay Hill, Mesilla Park George Jackson, Lordsburg John Jackson, Lake Arthur Janet Jarratt, Los Lunas Deena Kinman, Elida Matt Lansford, Clovis Boe Lopez, Springer Danielle Lowry, Albuquerque Donald Martinez, El Rito Tommy Ortiz, Las Vegas Troy Sauble, Maxwell Paula Sichler, San Antonio John Sweetser, Deming Tom Wilton, Ft. Sumner

REGIONAL DIRECTORS Joel Alderete, Roswell Benjie Segovia, Las Cruces Zach Riley, Albuquerque Valerie Huerta, Santa Cruz Theresa Widner Director of Membership Services Carmen Macias Comptroller Dalene Hodnett Director of Communications and Media Relations Traci Curry Southern Director, Ag in the Classroom Cheryl Butterfield Northern Director, Ag in the Classroom Anita Hand, Chair Women’s Leadership Committee Danielle Lowry, Chair Young Farmer & Rancher Committee March 2016