The Gift of Grain

The Benefits of Gifting Grain to Charities under the New Tax Law

Julie Spiegel (VIII), CPA, Varney & Associates, CPAs, LLC

As the calendar draws to a close, thoughts of charitable giving may be on your mind. With recent tax law changes enacted under the Tax Cut & Jobs Act, itemizing deductions – which includes charitable contributions – on individual tax returns, may be superseded by a much higher Standard Deduction afforded to taxpayers ($24,000 for a Married Filing Jointly couple and $12,000 for a Single taxpayer).

Consequently, for many of us involved in farming, charitable giving in the form of “gifting grain” may become more appealing than a cash donation. In case you are unfamiliar with gifting grain, here is what you need to know as a “cash basis” farmer looking to make a charitable gift before year end:

The potential tax savings for a farmer who gifts grain includes the following:

No charitable deduction is reported by the taxpayer, so the married farmer who has less than $24,000 of Itemized Deductions (i.e. medical expenses (on a limited basis), state and local taxes, charitable giving, and mortgage interest on a house), can take advantage of the $24,000 Standard Deduction along with the reduced farm income from gifting the grain.

Example of Gifting Grain – Joe and Jane Farmer:

Joe and Jane Farmer typically donate $10,000 to their hometown church each year. Instead of donating cash in 2018, they chose to gift 1,250 bushels of soybeans when the market price was $8.00 per bushel. Assuming the Farmers have not exceeded the maximum self-employment tax limit, their potential tax savings could be ~$5,600 (37% federal savings, 5.7% Kansas savings and 15.3% self-employment tax savings). If they had simply gifted cash, their savings would have only been $3,700 (if they were able to Itemize Deductions).

As always, please consult with your tax accountant or CPA who can advise you as it relates to your own personal tax situation.

Kansas Agriculture and Rural Leadership, Inc. Announces Class XV

MANHATTAN, Kan. – Kansas Agriculture and Rural Leadership, Inc. (KARL) Class XV participants have been announced by the program’s president, Jill Zimmerman. The class was inaugurated at an event June 1 in Lindsborg.

National Geographic photographer, Jim Richardson, provided a program about America’s Heartland to celebrate the inauguration of the new class and the third decade of KARL.

“It certainly appears that KARL Class XV is filled with outstanding individuals from throughout our state, and I am excited for them to begin the program,” said Steve Baccus, Minneapolis, Kansas, who recently assumed duties as chairman of the KARL board of directors. “KARL aims to create leaders who will help ensure the long-term viability of Kansas agriculture, who will think forward, who have the ability to engage and positively influence society, and who can participate in communication networks that enhance agriculture and rural Kansas.”

The class will participate in seminars across Kansas, a national study/travel seminar in Washington, D.C. and a Blue Chip seminar, and conclude in 2021 with an international study/travel seminar to the United Arab Emirates. The goal of the program is to develop problem solvers, decision makers and spokespersons for agriculture and rural Kansas.

Seminar themes include leadership assessment and potential; natural resources and energy; leadership through communication; agricultural policy; international trade and finance; Kansas’ political process; global perspectives; social and cultural issues; understanding and developing leadership skills; agribusiness and marketing; information technology; advances in health care; the resources and people of Kansas and other areas designed to develop leaders through exposure to an array of current topics and issues and how they interrelate. 

The newest members of Kansas’ premier two-year agricultural and rural leadership development program represent a myriad of professions influential to agriculture and rural communities in Kansas.

Text Box:     “KARL is certainly one   of the best oppor-tunities       I have been lucky to enjoy.  
 
     I believe in the pro-gram and the opportuni-ty for growth and friend-ship and leadership it sparks.”
 
      
 — Jesse McCurry             Kansas Grain Sorghum Producers, Colwich, KS

KARL Class XV participants by hometown and county are: 

– Inman, McPherson County: Kim Baldwin (family farming operation)

– Mound Valley, Labette County: J.J. Bebb (Cornerpost Crop Insurance)

– Lenexa, Johnson County: Leland Brown (Merck Animal Health)

– DeSoto, Johnson County: Allison Burenheide (Merck Animal Health)

– Ellis, Ellis County: Darci Cain (Fort Hays State University Foundation)

– Liberal, Seward County: Stewart Cauble (Seaboard Farms)

– Downs, Osborne County: Amy Doane (Smith County Memorial Hospital)

– Tescott, Ottawa County: Jessica Ebert (Ebert Ranch, CALF News)

– Pratt, Pratt County: Karly Frederick (BTI John Deere)

– Sabetha, Nemaha County: Roy Frey (Kansas Insurance Group, Inc.)

Text Box: 101 Umberger Hall    1612 Claflin Rd.    Manhattan, KS 66506    Ph:  785-532-6300    www.karlprogram.com

– Topeka, Shawnee County: Sean Gatewood (Gatewood Governmental Relations & Consulting)

– Phillipsburg, Phillips County: Kayla Jarvis (First National Bank and Trust)

– Manhattan, Riley County: Justin Kastner (Kansas State University, Trinity Canton Church)

– Garden City, Finney County: Austin Love (Commerce Bank)

– Oakley, Logan County: Leigh Ann Maurath (Kansas Farm Bureau)

– Lakin, Kearny County: Kyler Millershaski (MK Farms, Inc.)

– Liberty, Montgomery County: Jesse Muller (Muller Construction, Inc.)

– Preston, Pratt County: Jackie Mundt (Kanza Cooperative Association)

– Russell, Russell County: Andrew Ochampaugh (Agrilead, Inc.)

– Kinsley, Edwards County: Garrett Reiss (Phytech U.S., Inc.)

– Manhattan, Riley County: Kendra Riley (Kansas Department of Agriculture)

– Wichita, Sedgwick County: JR Robl (Hutton Construction)

– Sharon Springs, Wallace County: Clay Schemm (Arrow S Farms)

– Wichita, Sedgwick County: Anthony Seiler (Sedgwick County Farm Bureau)

– Garden City, Finney County: Bob Tempel (WindRiver Grain, LLC)

– Hutchinson, Reno County: Debra Teufel (Hutchinson/Reno County Chamber of Commerce)

– Riley, Riley County: Shawn Thiele (IGP Institute, Kansas State University)

– Abilene, Dickinson County: Beth Weibert (Ag Risk Consulting)

The KARL program is a non-profit, educational organization dedicated to developing leaders for agriculture, business and rural communities, and is a member of the International Association of Programs for Agricultural Leaders (IAPAL), represented in 40 states and multiple countries. For more information about KARL, call Jill Zimmerman at 785-532- 6300, email karl@ksu.edu or visit the KARL website at www.karlprogram.com .

Join KARL & Friends in Panama

The Panama Canal opened in 1914 introducing the American farmer’s products to the world. Now, over 100 years later, Panama’s location and role in global trade are still important. It is said that the Panama Canal handles 3 out of every 10 bushels of grain and soybean exports from the United States. Panama enjoys a vibrant economy with its Colon Free Trade Zone. Agriculture continues to also be an important sector in Panama’s economy producing bananas, cocoa beans, coffee, coconut, beef, chicken, shrimp, and others. Panama is much more than a canal, with a rich cultural tradition, genuine and welcoming people, delicious cuisine and fantastic birds and wildlife.

Join KARL and Friends on this trip of a lifetime! Click here for more information and the trip itinerary.

KARL selects vice president

MANHATTAN, Kan. – Kansas Agriculture and Rural Leadership, Inc. President Jill Zimmerman has announced that Susan Sankey has accepted the position as KARL vice president.

In her new role, Sankey will support the organization’s mission for a strategy for excellence, including strengthening curriculum and fundraising to support the engagement of more purposeful work as it relates to agriculture and rural leadership in Kansas.

“The addition of a vice president has been a piece of KARL’s strategic vision for a while, and having the opportunity to set that strategy in motion will allow KARL to be more purposeful in our work, and to affect change at a faster rate,” Zimmerman said. As president of KARL since October 2017, Zimmerman has been working with the board of directors on a renewed strategy for excellence.

“This is truly a great hire for KARL,” said board chairman, Jerry McReynolds. “Susan not only has the experience and technical skills to flourish with KARL. But, she has the passion, skill set, and an understanding of our culture to truly make a lasting impact on a program we all care greatly about. These attributes combined with a supportive board, alumni, and donors will truly benefit our work as we move KARL forward.”

Previously Sankey worked with the Kansas 4-H Foundation and at the Kansas State Fair, where she was general manager. She is a 20-year veteran of the non-profit sector with experience in healthcare philanthropy and strategic growth, rural community involvement, and a corporate background with Cargill and Seaboard in quality assurance and food safety. She is a graduate of Texas A&M University with a degree in agricultural education and has a background in fundraising, organizational management, and leadership.

The KARL program is a non-profit, educational organization dedicated to developing leaders for agriculture, business and rural communities. 

NEW KARL PRESIDENT ZIMMERMAN ON BOARD

Newly Hired KARL President

Newly Hired KARL President

Class V graduate Jill Zimmerman has been selected as the new president of the Kansas Agricultural Rural Leadership program.
Congratulations Jill on landing the best job you’ll ever love!
http://m.hpj.com/ag_news/karl-selects-zimmerman-as-new-president/article_2125b9de-8b93-11e7-86fd-0f11050f6f11.html

Interim President Announced

The Kansas Agriculture and Rural Leadership (KARL) Board of Directors announces J.J. Jones as the new interim president of the KARL Program, effective July 1, 2017. Jones will replace Alvin Davis, who resigned from the position.
As interim president, Jones will usher in a new strategy to further the vision, mission, and direction of the premier long-time leadership program focused on developing excellence in rural and agriculture industry leadership.
“J.J. [Jones] brings deep roots in agriculture and a passion for leadership to the program,” said Jerry McReynolds, Chairman of the KARL Board of Directors. “That background is a perfect fit to kick start the new strategy and vision the board of directors have set.”
“Our program needs to revitalize and evolve in the same way our leaders have over the years,” added McReynolds. “Our goal has always been to provide a premier leadership program that will benefit rural Kansas and the agriculture industry.”
Steve Baccus, vice-chair of the board, said the board acknowledges the resignation of Davis prompted the shift in strategy and direction, and says Jones will be able to “step in and get Class 14 started.”
“J.J. is connected to agriculture, and as a graduate of Class 10 will be able to help guide the next class as they prepare for their two-year journey,” said Baccus.
The KARL board recently introduced the 14th class, and are committed to their success moving forward.
Jones is currently a Senior Account Manager with Look East Public Relations firm building industry coalitions to help build trust and confidence in today’s food system. He has worked for the Kansas Department of Agriculture, Seaboard Foods, Kansas Department of Commerce as well as The Agribusiness Retailers Association, The Beef Council and others. He has organized and lead over 30 trade missions around the world on behalf of Kansas farmers and ranchers and Kansas agri-businesses.
The program will begin a search for a permanent president with the application process opening on June 21 and closing on July 15. Anyone interested in applying for the position is encouraged to contact Janice Lierz, executive assistant, at the KARL office located in Umberger Hall on the Kansas State University campus. Janice can be reached at jlierz@ksu.edu or by calling 785-532-6300.
The Kansas Agriculture and Rural Leadership (KARL) program is a 501(c)(3) non-profit, educational organization dedicated to developing leaders for agriculture, business, and rural communities. KARL graduates are on every major commodity association board, several commissions and multiple boards, advisories and councils from the local through national level. Visit www.karlprogram.com or the organization’s Facebook page for more information.

Dec. 1 – Pay it Forward Campaign Launched

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Dear KARL Friends and Alumni,

December is Pay it Forward month for the KARL Program. Pay it forward is an expression for describing the beneficiary of a good deed, whereas it is repaid it to others instead of to the original benefactor.

Recently, the Huck Boyd Foundation recognized Bob Dole for his accomplishment and impact on Kansas during his life. Dole represented Kansas in the House from 1961 to 1969 and the Senate from 1969 to 1996. During the presentation, Dole and Nancy Kassebaum Baker, who represented Kansas in the U.S. Senate from 1978 to 1997, made a few statements that I would like to share.

“A major part of the State is rural, it is important to recognize how vital rural communities are and the importance of community involvement on many local, state and national issues,” said Kassebaum Baker. Furthermore, Dole stated, “Leadership does not just drop out of the sky. We’ve got a lot of problems, and we don’t need sound bites or tweets, we need solutions.”

The Pay it forward principle is one that I try to live by every day. I was a 4-Her, that is why I spent 18 years as a 4-H agent. I was in FFA, so that is why I went to the American Royal for 5 years I was a wrestler, and that is why I volunteer and coach. I am a KARL Class V graduate, and that is why I am here.

Over the past 26 years plus of the KARL program, we have all benefited either directly or indirectly. That only happened because hundreds of other people paid it forward and continue to pay it forward. It did not matter whether it was a Republican or Democratic in the white house or if grain and cattle prices were high or low, people just gave to make Kansas a better place, and invested in the leaders we have developed. I am asking you to help us by donating to the KARL Class XIII.

We still have the international trip to Chile which will cost over $100,000. If you cannot donate that much, we will gladly accept smaller cash donations, grain donations, or set up an automatic deduction so that you may not have to worry about it. KARL is still a 501c3 charitable donation, and all your donation are tax deductible, just one of the many benefits of your end-of-year giving. Thank you for your time and dedication to the KARL Program and being on the forefront in contributing to leaders in your community and in Kansas. As Bob Dole leaves it, “There is still work to be done.”

– Al Davis, President

Diver Says KARL Delivers

KARL and the graduate program is the learning method of “say-see-do” on steroids.
The KARL program encourages participants to freely share ideas and opinions in an open civil environment, while touring a variety of businesses and agencies throughout the state. I’m sure each class member can recall one seminar that had the greatest impact on their KARL experience. Taking the international tour allows exposure to foreign culture and to increasing global connections.
Prior to my participation in the KARL program, my leadership was focused on single, local issues, i.e. school board, and or the township roads.
I’m now using the skills provided through the KARL training in my role as county commissioner. KARL training has been very beneficial in addressing the broad range of issues facing county governments.
The graduate program offers learning opportunities and networking through ongoing seminars and domestic/ international travel. This allows spouses to become actively involved in the KARL family. The camaraderie on the graduate trips is awesome. Driving yourself around a foreign country does not remotely compare to riding the “KARL bus.”
I encourage all KARL members to expand their community involvement and support future KARL classes.

Fred Diver, Class VII – KARL Ambassadorimage

KARL Gets Help from HPJ and KBUF

Pulling off the OWF is a big enough challenge but adding a concert is a new wrinkle. The Western Kansas Broadcasting Center has stepped up to the plate to assist the committee. They are running ads and a contest with ticket give-a-ways on 4 of their stations, KBUF, Q97, KULY, Mix 94 . Lory Williams, Farm Director at the Center says, ” We are the sound of Rural SW Kansas and beyond. People count on us for not just music but good information from all over Kansas.” Listen to the Commercial by clicking the sound bar.

Long time KARL supporter High Plains Journal pitched in a great ad in their June 27 issue. High Plains Journal President Tom Taylor says “High Plains Journal has been a proud, long time supporter of KARL.  It’s mission of developing exceptional leaders for agriculture parallels our own strategy, with several of our employees having professionally benefited from KARL’s leadership development experience.  High Plains Journal applauds KARL’s vision of growing Kansas rural leadership and we look forward to partnering in the future.” The High Plains Journal has been a KARL Supporter since 1994. Al Davis, KARL President said,”They recognized early that the development of leaders in rural communities is a must for sustainability. THE HPJ has been a good friend to KARL and we look forward to growing that relationship into the future.”

For more on the High Plains Journal, please check out their webpage at http://www.hpj.com/.

 

 

KARL Alumnus Runs for US House

KARL has been known to develop leaders for all levels of responsibility in our community. KARL has developed such leaders as Steve Baccus and Rich Felts Farm Bureau past and Current Presidents, Don Schroeder, Susan Concannon and Ken Rahjes Representatives in Topeka and Mike McClellan former school board president.

Miranda Allen KARL Class XII Graduate from Kiowa, Kansas will be taking a chance at the 4th Congressional District.