John has served as vice president of the New Mexico Dairy Producers board and as secretary for DFAs Southwest Area Council, where he has been active on the corporate Fluid Marketing and Public Policy Committee, as well as the hauling, membership, finance and plant committees. In addition, he farms more than 3,000 acres of crops on a pivot irrigation system. Ron has served as treasurer for the Mountain Area Council for 16 years. We comply with the Federal Trade Commission 1998 Childrens Online Privacy Protection Act (COPPA). We have an incredible team of employees who bring our mission to life every day. May 2006 - Present16 years 9 months. &,WfbO?Euk@xB|cW^~$=xa+fUnlekDYk[TKJg++? [3], In January 2019, the federal government of Canada gave $2.7 million to the organization. Senior Vice President of Finance and Chief Treasury Officer. Jennifer works with her parents, brother and three full-time employees on the farm. Coop equities and retains are generally taxed in the year of issuance of the patronage dividend or product sales. He currently serves as chairman of the Piedmont Soil and Water Conservation District and the Amelia County Planning Commission. Per-unit retains can be issued as capita l certificates , permitting the coo perative to retain The sale of both raised breeding livestock and purchased breeding livestock as well as other assets can create two different types of capital gain (short-term or long-term), each have very different tax consequences. . Together, they milk 2,000 cows on three different dairies and farm 1,800 acres of corn, alfalfa and wheat. % The sale of different assets may require coming to an agreement with the other party on how to allocation the sale amount. They milk 3,800 cows and grow corn and hay on more than 3,500 acres. Dan also serves his church, as well as a variety of civic and charitable organizations. Sell the machinery and equipment that are used to make hay and silage once you have enough feed inventory on-hand for the remaining livestock. 0000000556 00000 n Fresh Milk Consumer willingness to pay for dairy products with the 100% Canadian milk label: A discrete choice experiment. He serves as chairman of United Dairy Industry Associations board, is on the National Milk Producers Federation board and is on the Innovation Center for U.S. They have a 400-cow-and-calf beef operation and raise 275,000 chickens. At Dairy Farmers of America, we're proud to share the simple pleasures of real dairy straight from our family farms. He currently serves as chairman of Newtrient, vice chairman for the Innovation Center for U.S. Dan and his partner, Clayton Winger, milk 3,600 cows and raise their heifers in southwest Kansas. Any unpaid principal is carried over to a future year and is taxed in the future. EBITDA including associate dividends and capital retains increased to $558 million based on Fitch adjustments in 2021 compared to EBITDA of about $520 million in 2020. He joined DFA in 2003 and has held various roles within the Western Area, including vice president of fluid milk operations and vice president of operations. Rick, along with his wife, Carol, and sons, Greg, Marcus and Wade, milk 7,000 cows at two locations and farm 4,000 acres of corn and alfalfa near Greeley, Colo. Rick and his family also operate a 4,000-head feedlot where they finish out the steers and crossbreds from the dairy. They are a West Virginia Century Farm. ""##$$%%&&%%%%%%%%%$$$$%&&((''''((()**++++***+,-/0..///00001111222222222211234455555555555444444455678889:;;:989999:::::::;;;;;:;;<<<<<<=====>>>>>>????@@@@@@@@AAAABBBBCCBBBCDDEDCBBCDEBBBBAAAAAAAAAAAA@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BBCCBA@@AABBBBAABAAAA@@@? Alex joined DFA in 2006 andhasservedin numerous roles during his tenure, includingpreviously serving as DFAs chief legal officer. xWLuxNzQnu)Y"!fd`D(. LA@8H&0(L4e" (fQ#[3~]?w{y{ dP vD c_labI=@]n)Uo?i4?YCGsye@$U4%Ytelnt3>Ou>V Since joining DFA in 2008, Jackie has led the Cooperatives public policy efforts and has played an active role in member services and community initiatives. Dairy farmers are having to consider a number of life changing decisions that they never thought would come. Travis is also a member of DFAs Executive Committee. Once the feed inventory is reduced the remaining herd may be sold and then you may consider selling or renting the land as it is no longer required. Whey A part of DFAs management team since 2007, he previously served as executive vice president of DFA and president of council operations and Ingredient Solutions. In determining the site for the new facility, St. Johns was selected due to the growing supply of milk in the region, the transportation infrastructure in the region, proximity to customers, and the positive business environment and strong local workforce reputation in the region. The sale of purchased breeding stock (heifers, cows and bulls) are covered by IRS U.S. Code Sect. But this technique should only be done if it is financially feasible and does not place the operation into further debt or loss situations. In his current role as chief operating officer of the Southwest Area, Tim is responsible for the overall business operations of the Area. He previously served as a DFA delegate for 12 years, in addition to several industry leadership roles. At Dairy Farmers of America, we're proud to share the simple pleasures of real dairy straight from our family farms. Manufacturers He is also a member of DFAs Executive Committee. 330-670-7800. Bill and his wife, Sandy, have four children Brett, Beth, Doug and Greg and nine grandchildren. ;s]}1)Y_u^uoLhJ]MgszzuY(f=1UC?N1xqO1k Today, they milk 350 cows and grow their own haw and corn for feed on the farm. The rent income typically can offer needed stable income for years to come. Glanbia nutritionals John served on the Corporate Resolutions Committee for 11 years and served on the Northeast Area Council for three years. Brian owns and operates Tuleview Holsteins with his family. Therefore, the sale of feed and crop inventory, feeder livestock, milk, and supplies are all taxed as ordinary farm income and is also subject to self-employment (SE) tax which is typically at 15.3 percent up to $132,900 of taxable income. /Type/XObject Long-term capital gains are gains on the sale of assets that were held for more than a year. In addition, Fitch has placed the 'F2' Short . Nerd Herd. The variety of creative exit options can be dramatically different from one another depending on your needs, flexibility and the prospective buyers/renters needs and capabilities. & Hobb, J.E. Jerrel is active in dairy promotion and other dairy-related boards. The sale proceeds can be used to pay down existing debt obligations. They are revolved back to members after a certain period of time. The sale of buildings and improvements with a 20-year depreciable life or longer are covered by IRS 26 U.S. Sect. These are difficult decisions to make and the process can be daunting. The per-unit retain is a distribution based on the volume or value of product marketed through the cooperative by the patron. Take a minute to discover what makes our culture so special and check out our open positions. Careers. David, in partnership with his brother and son, milks 500 cows and grows grass and corn silage on 1,100 acres. Description Mayfield Dairy is a farmer-owned brand of Dairy Farmers of America (DFA), a dairy marketing cooperative owned by more than 12,500 family farmers. Often the gain on the sale of machinery and equipment will be recaptured depreciation and taxed as ordinary gain. Jay currently serves on a number of industry leadership groups and company boards. We are positioned to move forward, addressing together the challenges of an increasingly dynamic, volatile and global industry. The 4-H Name and Emblem have special protections from Congress, protected by code 18 USC 707. Additionally, the Krebs raise 350 beef cows and 160 sheep. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. A gross profit is calculated as the sale price minus the cost basis including recaptured depreciation on the complete sale. Options can include the sale of everything at once to partial sales or even to the sale of some items while leasing such assets as the milking herd. ""##$$%%&&%%%%%%%%%$$#$$&&((''''((()*+++++))*+,./0..///00001111222222222222234555555555655554444556788889:;;:989999:::::::;;;;>>>>>?????@@@@@@@@AAAABBBBCBBABBDDEDCBBCDEBBBBBAAAAAAAAAAA@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BCCCBA@@AABBBBAABBAAAA@@?? For 2022, Fitch projects DFA's EBITDA around $540 million, slightly lower than 2021, reflecting inflationary cost pressures. Pete is in partnership with his two brothers milking 2,500 cows and farming 1,700 acres of alfalfa, corn and rye at Hillside Dairy, which has been in business for over 100 years. The sale of machinery, equipment and single purpose buildings & improvements with a GDS class life of 15 years or less are covered by IRS 26 U.S. Code Sect. A merger between Dairy Farmers of America and Dean Foods could impact hundreds of thousands of dairy . Larry is a board member for American Dairy Association Mideast and Ohio Dairy Producers Association. Dairy Farmers of America, Inc. 3.2 . This accelerated amount is deemed recaptured depreciation and is taxed as short-term ordinary gain. John and Nancy were awarded the Mideast Young Couple award in 1998. Larkin operates Oakmulgee Dairy in partnership with his two sons, Jeremy and Brandon, who are both active in DFAs Young Cooperator program. Dairy Farmers of America, Inc. (DFA) operates as a dairy cooperative. Brian Phelan, CEO of Glanbia Nutritionals, said, As we enter this key commissioning phase and begin production at the plant, I would like to thank the entire Glanbia Nutritionals team, and in particular the onsite team, whose expertise and focus have kept the project on track and on budget particularly during the challenges of the last seven months. He has held senior positions in finance, operations, marketing, strategy, mergers and acquisitions, sales and general management. Ask for help, there are many individuals and agencies willing to assist. Dennis serves as president and chief executive officer. This type of property is treated similar to machinery & equipment for tax purposes. /Height 611 Jon has spent his entire career in the dairy industry with more than 30 years in dairy plant processing and sales, including working for Kroger and Hiland Dairy. The value of all assets need to be agreed upon such as tile, wells, irrigation, buildings, machinery and equipment, livestock, feed supplies, growing crops, etc. She also has served on her town council for 19 years as an agriculture advocate. In 2014, he was recognized for his leadership in the Missouri dairy industry with the Missouri Dairy Legacy Award, and was named Director of the Year by the National Council of Farmer Cooperatives. KANSAS CITY, Kan., Sept. 15, 2022 /PRNewswire/ -- Dairy Farmers of America (DFA), a national dairy cooperative with more than 11,500 family farmers, has been selected to receive up to $45 million . The most common ethnicity at Dairy Farmers of America is White (69%). Greg is a Mideast Area Legislative Committee member and an American Dairy Association Mideast board member. Short-term capital gains are taxed at yourordinary income tax rate for assets generally held less than a year. MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential. As president and chief executive officer, Alan leads the executive leadership team to ensure the overall health of DFAs Dairy Brands Division. Brian has been active on many boards, currently serving on the National Milk Producers Federation board and as chairman of DFAs Mountain Area Council. Kevin has been in the dairy industry his entire life. REQUEST A DONATIONfrom the DFA Caresfor your local food bank. This may not necessarily coincide with the sale of a farm and exiting the business. Member equity/retains. Sandy operates Stauffer Farms in partnership with his two sons. DFA is America's leading dairy cooperative. Farms with his wife, Holly, and son, Luke. The family practices 100% no-till and cover-crop farming. Brian is a fourth-generation farmer and has been active in DFAs Young Cooperator and Emerging Leaders programs. Canadian dairyfarmersare naturally committed to sustainability and the environment. Dairy Farmers of Canada invests in scientific research to foster innovation in the Canadian dairy sector. Dairy. Alex also has leadership responsibility for executing certain enterprise-wide decisions and initiatives, which drive DFAs culture and performance. Dairy Farmers of America Inc. (DFA) is a national milk marketing cooperative in the United States. He also previously served as a special agent with the Kansas Bureau of Investigation. He has held various positions at DFA including roles in transportation, membership services and procurement, and most recently as senior director of dairy procurement for the Dairy Brands Division. Renting or leasing the equipment will not trigger depreciation recapture and will allow for a continued income for years to come. First-generation farmers, the Woelbers grow 1,000 acres of feed and raise their own replacements on their 2,800-cow operation. 0000004678 00000 n A detailed balance sheet should be developed for each business entity. Stronger asset sale values will be maintained as they will not be sold at distressed sale values. He began his dairy cooperative career in 1986 with Associated Milk Producers in Tulsa, Okla. He serves as treasurer of DFAs Board of Directors, is a member of the Executive Committee and is chairman of the Northeast Area Council. Prior to joining DFA, Andrew practiced law at the international law firm now known as Bryan Cave Leighton Paisner LLP, and began his career at The Boeing Company. It works to influence public policies that will maintain the viability of Canadian dairy producers and promotes the health benefits of dairy products. ""###$$%%&%%%%%%%%%%$$$%&&(''&&''('()**+*****+,-//..///00001111222222221111233444444444444433333345667789:;;:989999:::::::::;;;:;;<<<>>>>????@@@@@@@@@@AAAABBCCCBCCDDEDCCCCDEBBBBAAAAAAAAAAAA@@@@@AAABBAAAA@@@@AAAABBBBAAAA@@BBBBBA@?AABBBBAAAAAAA@@@@@AABBAABCDCAAABAAAAAAAAAAAAAAAABBAABBCCCCCCCCCCBBBBBBBBCCCCCCCCCCCCCDDDCCCCCCCCDDDDDDDDDDDDDDDDDDDDDCCCBBAAABBCDDDCCCCCDDDDEEEEFFFEEEEDFFFFFFFFGGGGGGGGFFFFFFFFFFFFFFFFFFFEEEEDEEEEEEEEDDDDDCCCDDDDDDDDCDDEEDDCCCCBBBBABAA@?>>=? Many of the options can be integrated with one another dependent on the needs and requirements of the buyer and seller. General inquiries. All policy, marketing, nutrition and market research activities were regrouped under the newly formed organization, which retained the name "Dairy Farmers of Canada". Jeff serves as chairman of the Mideast Area Council and is on DFAs Executive Committee. In addition to his role at DFA, Brent sits on the operations committee for Dairy Cooperative Marketing Agency and Common Marketing Agency. The sale price of an asset minus the current tax-basis equals the gain. He currently serves on the Membership and Farm Services committee. It is strongly advised to work with your trusted legal and tax professional as soon as you begin serious consideration to a farm sale or conversion. Property used in the trade or business and involuntary conversions. 0000015308 00000 n Dairy Farmers of America Inc. (DFA) is a national milk marketing cooperative in the United States. They raise all their replacement heifers and grow alfalfa, corn and oats. He currently sits on the board for Harvesters. Kristine and her husband, Mark, began dairying in 1994 with 60 cows in a rented barn. The family also has a large maple sugaring operation. Doug is chairman of the Central Area Council and a member of DFAs Executive Committee. Randy previously served on the National Dairy Promotion and Research Board, as well as 20 years on his church council. It is important to understand that each farm and situation is unique so this short article will discuss points in general terms. Then the gross profit percentage, as a percentage of the total sale, is then applied to any principal (not interest) received during the year to calculate the taxable income. Deans Handyhills Farm is an eighth-generation bicentennial farm, owned and operated as a joint venture with his brother, nephew and their wives. . We believe that local fare makes for most delicious meals and unforgettable get-togethers. In addition to his role with DFA, Tim sits on the boards for Dairy Products Institute of Texas, Southwest Cheese and Southwestern Cooperative Marketing Agency. He also serves on the National Milk Producers Federation board, is vice chairman of American Dairy Association North East and is chairman of the Pennsylvania Dairy Promotion Program board. DFA's business profile benefits from the substantial national scale as the largest U.S. dairy cooperative and its integral market position in the dairy supply chain based on DFA's expansive logistics, distribution and commercial processing capabilities that connect key customers and farmers. Consideration of the installment sale treatment of certain assets and leasing of other assets based on how they are taxed may warrant some consideration. Angela works with these groups to grow and develop leaders at every level who deliver excellent business and people outcomes; attract and hire industry talent; and deliver optimal workforce productivity and performance through effective and efficient teams, structure and employee and labor relations. When some assets are sold for a profit, a capital gain/(loss) is generated. This information is for educational purposes only. The equities and retains are tax-free when distributed back to the farm in later years assuming they were taxed when issued. %%&&&&&%%$%%%%%%%%%%%%%&&&%&&&'((()))*********,-./../0121111223333333332333344444555566554333444444566788899999::;;;;<==<<==>>>>=====>>??@@@?@???@ABBBBBCCCCDCCCBCCDEFFFFFGGGEEDCBBAA??? We are a purpose-driven cooperative, working to enrich communities and consumers' lives through all the possibilities of dairy. In addition, I would like to thank the State and City authorities for their continued support and of course our great partners, DFA & Select Milk Producers. , Rance Miles, CEO of Select Milk Producers said, This partnership began two decades ago with the creation of the Southwest Cheese JV by bringing dairy farmers, processors and local communities together to achieve beneficial results for all. He is also a member of DFAs Executive Committee. 681 0 obj<> endobj 14% of Dairy Farmers of America employees are Hispanic or Latino. Farm income averaging (Schedule G) can be considered to fill back years lower bracket amounts and possibly keep the current years income from being taxed in higher tax brackets. In 2015, Andrew was recognized in Ingramsmagazines 40 Under Forty list, and in 2011, he was included in its 20 in Their Twenties list. Cheese, See Previously, he served as senior vice president of human resources, where he held strategic responsibility for the human resources function, with a primary focus on shared services. MWC, a $470m cheese and whey plant in St. Johns, Michigan, began receiving milk this week from local farmers, marking the first day of operations for the facility and beginning of the commissioning phase. In 2017, Danelle was recognized in Ingrams magazine 40 Under Forty list. Senior Vice President and Chief Government and Industry Relations Officer. They now milk 700 cows and farm 1,000 acres. Melvin has been dairying since 1981 on the farm started by his father. (2016). Keeping lenders well informed of the plans is always a must. A joint venture between Glanbia Nutritionals, Dairy Farmers of America, Inc. (DFA), and Select Milk Producers Inc., MWC was designed and built over a two-year period. /Width 840 Forbes-Brown, S., Micheels, E.T. On the farm, they raise all of their own replacement heifers, double-crop 850 acres with corn and winter forage and farm 300 acres of almond trees. His responsibilities include oversight of DFAs Cooperative-owned transportation fleet, leading milk marketing activities and business operations management and management of Mountain Area Council operations. 816-801-6455. . He was also a managing partner of two dairy farming operations, which were both DFA farms.