PRESIDENT'S COLUMN
By Al Averitt
NAICC President
Influence in Washington Growing
It seems I'm getting used to traveling to our nation's capital these days, what with two recent trips and another on the agenda. I'm pleased to say that our hard work is paying off, as we're gaining more attention among policy-makers and influencers. Below is a recap of my trips, as well as an update on our recent Fall Board Meeting.
Also, by the time you read this, Robin Spitko will have attended an EPA workshop on Risk Assessment, while Ray Young and I will have attended a USDA Summit meeting hosted by Deputy Secretary Jim Moseley on Technical Service Providers and their role in implementing the conservation title of the current Farm Bill.
Survey Results Delivered On September 23, Ray Young and I went to Washington, D.C., with several objectives for our two-day trip. As our ancestors taught both of us, when you have occasion to go to town you make the most of the trip. We also do our best to spend your dollars wisely, for as Paul Harvey says, "You don't just run to town for a gallon of milk."
The primary reason for our September trip to Washington was to present EPA with the results of the survey they'd requested last spring. (The goal of the survey was to quantify various qualifications and to learn more about specific safety practices of independent crop consultants.)
Lynn Henderson of Doane Ag Services agreed to meet us in Washington and to present the results of the survey they helped conduct earlier this year. (As you may recall, Doane agreed to conduct the survey for us.)
Steve Johnson, Lois Rossi and nine other EPA employees attended the survey presentation. I would classify their response to the results as pleased; I think they found the information very enlightening in a positive way. One comment was made about the surprising use of teenage field scouts (though the number of scouts this age is low). I stated that a portion of them are family members and that most firms like my own have a policy requiring at a minimum a high school education, with a preference for college students and/or graduates studying the life sciences.
The comment was made that the EPA staff didn't expect us to be able to respond so quickly to the survey request and they were complimentary of our efficiency. Someone in the group stated that they were accustomed to this type of research taking
several years!
Look for the survey results to be presented during the Annual Meeting's business session.
Research Consultant Exemption and Crop Monitoring Profile.
On this trip we heard from Kevin Keaney, with EPA's Certification and Worker Protec-tion Division, who said that the Contract Researcher Certification was very close to final approval. He stated that we should receive a letter indicating that the CPCC-Researcher designation would be recognized for exemption from portions of the Worker Protection Standard exemption as is the CPCC-I designation. Congratulations to the Legislative Advisory Committee and the contract research consultants for their work on this issue.
Kevin also stated that EPA is awaiting a proposal from us concerning the development of "Crop Monitoring Profiles." I plan to appoint a task force to think through the process of profile development and from that process develop a proposal. Most likely the members of this task force will include representatives from the group that developed the IFAFS Grant proposal in 2000 as well as some members of the LAC.
Independence Issue Addressed.
While we were in town, we also set up visits with USDA NRCS' Melissa Hammond, head of the NMP third-party process, and Mark Berkland, head of the EQIP programs and the Conservation Security Act. With these visits in mind, we contacted our good friend at the USDA-Office of Pest Management Policy, Harold Coble, Ph.D., prior to our trip. With him we discussed our position on "independence" from product sales profits.
Burleson Smith, Special Assistant Pest Management Policy to the Deputy Secretary Moseley, accompanied us to both meetings. During our visit with Melissa Hammond, we made it clear that we were not advocating exclusion for any other potential TPV groups that might participate. We emphasized that we believe it is in the best interest of the taxpayers, the farmers, the Natural Resource and Conservation Service and the industry as a whole not to allow conflicts of interest when it comes to writing Nutrient Management Plans and Whole Farm Plans.
Melissa noted our concerns and expressed appreciation for our involvement in the process thus far. She also stated that she and her colleagues are very aware of the NAICC and of our contribution to the industry - particularly to the growers.
A question did arise about our member numbers. We were quick to explain that our numbers may appear low compared to other groups but our influence and reach are broad, as our members are employed by the most innovative and technically advanced growers, who in turn have strong influence among others in the industry.
We discussed the likelihood that in some areas of the country, standards for particular geographic regions may not be widely accepted by consultants and growers alike. Discrepancies may be due to the dating of the research or lack thereof, and we stated our desire for the establishment of an appeal process to deal with such conflicts.
Melissa agreed and promised to address this recommendation as well. She encouraged us to make our membership aware of the rule when it is published and to encourage everyone to provide feedback during the 90-day comment period. We will notify you when that begins and ask that you make your feelings on independence well known to the NRCS.
Our meeting with Mark Berkland was to discuss EQIP funding and, again, the independence issue. He, too, stated that awareness of our efforts to allow our members to participate in the programs had grown. Mark indicated that the EQIP funding could potentially have funds earmarked for IPM.
While I heard the comment on several occasions that my face was becoming very familiar to the parties we visited this last year most likely the converse is true with my clients! I will be needing steady employment come 2003. Scary thought, isn't it? Allow me to be clear...I have no regrets. Just know your Board, staff and many, many NAICC members work very hard and make individual sacrifices for the good of the whole. Many thanks to those who have gone before me and will continue to do so when I am history.
Fall Board Meeting Productive
More recently, I enjoyed the genuine Texas hospitality of Bob and Barbara Glodt, who hosted the NAICC Fall Executive Board Meeting in Lubbock. It was a good meeting and we covered a number of issues:
- On the agenda was the discussion of by-law changes allowing the treasurer to be re-elected to a second term and the adjustment of quorum requirements for the Annual Meeting business meeting. Check your mail for more information on these issues; included with the information will be ballots for the 2003 Executive Board elections.
- We decided to begin selling NAICC apparel! You'll get a preview at the NAICC Annual Meeting, where you'll be able to place orders.
- The Alliance is investigating E&O insurance for our members. The next step is for the Membership Services Committee to review the insurance information.
- The Board voted to hold the 2005 Annual Meeting in Los Angeles, CA.
- A large part of our time during the Executive Board meeting dealt with legislative issues facing NAICC. A full Legislative Advisory Committee report can be found on the NAICC Web site.
Many thanks to all who attended and to our hosts; it was a full agenda as we head toward our Annual Meeting in Virginia!
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Turduckhen Found Company at the Auction
The much-anticipated live auction, held every two years at the NAICC annual meeting, will again be hosted by the NAICC and the Foundation for Environmental Agricul-ture Education at the 2003 meeting.
The live auction will take place immediately following the close of the silent auction on January 16. And while it may seem early, the meeting is right around the corner, so the sooner we know what your donation will be, the better!
To donate or to learn more about the auction, please contact the NAICC headquarters at (901) 861-0511 or JonesNAICC@aol.com or complete and return the following form at this web site.
R&D Research Farm, Inc., has graciously donated a Turduckhen - a boneless turkey stuffed with a boneless duck stuffed with a boneless hen, seasoned to perfection. For a while this was the lone donation to the auction. Luckily Ms. Dorothy and Mr. Ray Young have generously donated an Ameri-cana coverlet and pillow shams. The Turducken is in good company now. Both LA members challenge you to let the NAICC HQ know in advance what you will donate to the silent and live auction in January!
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Send in Your Nomination for Consultant of the Year!
It's not too late to nominate a colleague or yourself for the 2003 Crop Consultant of the Year awards. Three deserving individuals, each representing a different geographic area, will be selected to receive the award, sponsored by the NAICC and BASF.
Rewards for the three Consultants of the Year will include a plaque and special recognition during the BASF Consultant of the Year Alumni dinner and during the NAICC's President's Lunch and Awards Ceremony (both events held in conjunction with the NAICC Annual Meeting).
The winners will also receive editorial recognition in Crop Decisions magazine and in NAICC News. As part of the award, meeting travel, hotel, meal and registration costs for the 2003 annual meeting will be covered for the winners.
Applications can be downloaded from this Web site. (All applications will be reviewed by the NAICC awards committee, and five finalists will be selected. A committee of NAICC members and representatives from BASF and Crop Decisions magazine will then select the three winners.)
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Pay Dues On-Line - it's not too late to renew!
It's that time again! Please don't forget to pay your membership dues and your certification renewal fees (you now have the option of paying online at our Web site, naicc.org). This is an important investment in the future of your business and in your credibility as a consultant, researcher or sustaining member. NAICC appreciates your support!
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What every wife wishes her husband knew about estate planning...
and the IRS hopes you never find out by Lance Wallach, CLU, ChFC, CIMC
When U.S. Senator Robert Kerr of Oklahoma died, he left an estate valued at $20 million. The IRS immediately demanded $9 million from his astonished heirs. But market conditions at the time meant they would have to sell various stocks and real estate at a substantial loss - just to pay the sudden estate taxes.
They liquidated what they could, but could raise only $3 million. So they had to borrow the other $6 million. (You read that right - they had to borrow the money.) In the end, most of the estate went to interest payments and the IRS - not to the beloved but very frustrated heirs.
If this can happen to the $20 million fortune of a U.S. Senator (and long-standing member of the Senate Finance Committee), you and I are certainly fair game. You just know that for every high-profile case like this, thousands of "smaller fish" are getting fried.
What's more, recent massive changes to the estate tax law have created new pitfalls and made many commonly-used strategies obsolete. If you have a will, it is critical that you review it as soon as possible (precise and accurate wording is more important than ever). But the good news is that these changes have also opened up huge new loopholes and other opportunities to pass on every dollar you've accumulated - intact and exactly as you see fit.
The estate tax is here to stay
While there was a lot of talk about getting rid of the estate tax, it will go on looting our assets for the next eight years. True, the amount of money that's exempt from federal estate taxes will rise over the next few years. And the estate tax is scheduled to "expire" in 2010.
But here's the catch...
To balance the budget, a "Cinderella" provision magically brings the full tax back to life on January 1, 2001. In addition, Congress left the "gift tax" virtually un-touched. Plus, unless you plan properly, your estate could also get hit with massive new capital gains taxes on stocks and real estate that have risen in value - even if no other taxes are due. All this makes good planning more important - and more rewarding - than ever.
Another reason for good estate planning is how easily your nest egg can get wiped out these days by medical or long-term care expenses. (Can you believe it? The cost of nursing home care is over $100,000 a year in some areas!) A good estate plan keeps you and your family financially secure - whether you need long-term care years from now, or an unexpected turn of events puts you out of commission tomorrow.
Do you want to be absolutely certain that you and your loved ones will be provided for, no matter what happens? Do you want to pass on your wealth without insane interference from the courts, creditors or disgruntled relatives - and without the government grabbing the lion's share?
Then you owe it to yourself and your loved ones to at least get some advice from an advisor who understands estate taxes, VEBAs1 and 412(i) plans2. The problem is that very few advisors know how to implement these plans.
Life Can Change in the Blink of an Eye
In the prime of his life and career, the actor Christopher Reeve suffered a tragic and paralyzing horseback riding accident that changed his life. With his earning power severely limited, he and his family suddenly faced bills for medical care and physical therapy in the millions of dollars -well beyond the limits of most health insurance.
Fortunately, thanks to good planning, Mr. Reeve was able to receive the expensive care he needed and still remain financially secure. Could you?
With that special advisor, you'll be the one person in a million who knows the
critical dos and don'ts of creating or revising a will.
You'll understand the new tax laws as well as (or better!) than most accountants and lawyers today. You'll be absolutely sure you're doing everything you can to maximize and preserve your wealth - both for your heirs and for your own retirement and special needs as you grow older. And you'll start saving thousands of dollars in taxes right away.
Whether or not you've ever done any estate planning, here are a few important benefits a good advisor will provide to you:
- Pay zero estate taxes - no matter how much money you have. You can enrich your heirs or the U.S. Treasury.
- Make sure all your wishes are carried out, and that your wealth goes to exactly who you want. In the way that you want. When you're not around, all sorts of people may pop out of the woodwork to demand a say in how your estate is handled. Act NOW to shut them out.
- Prevent squabbles and misunderstandings among your beneficiaries. This happens much more often than you might think - and it's always heartbreaking.
How two states laid waste to a multimillion-dollar estate
Make a mistake on your estate planning - or fail to plan altogether -and everything you've worked for could go up in smoke. Just ask the unlucky heirs of John Dorrance, former head of the Campbell Soup Company.
When Mr. Dorrance died, New Jersey and Pennsylvania circled his estate like vultures. (He lived in Pennsylvania, but spent a small part of each year in New Jersey.) So both states claimed they were owed taxes on his assets. The courts agreed, and by the time the bureaucrats were done dividing up the spoils, there was virtually nothing left for those he had hoped to leave his assets.
It's true; even states you lived in years ago, or merely own property in, can lay claim to huge portions of your estate. And the greedier states tax estates that are too small for even the IRS to pursue. In fact, because of a change in the new tax law, states are now becoming more aggressive about getting a share of your estate. Plus, the government is abolishing the credit for state estate taxes. Unless you're careful, you could actually wind up paying more in total estate taxes in the coming years than before the 2001 estate tax cuts.
A good advisor will show you the very best ways to avoid state estate taxes altogether.
A good advisor will show you how to avoid a tax bite of over 70 percent on your retirement accounts and how to find the right lawyer to prepare your will. An incompetent one (and there are plenty out there) can accidentally disinherit your loved ones, send your estate into probate, trigger a costly lawsuit or cost you thousands of dollars in unnecessary taxes.
So what are you waiting for? You've worked hard for your money. It's bad enough that Uncle Sam is taking too much from you now. When you and your spouse die they will take again. Don't let the IRS take every last drop!!!
Lance Wallach, CLU, ChFC, CIMC, of Plainview, NY, speaks and writes extensively about VEBAs, estate planning, pension plans and tax reduction. For more information and additional articles on the subject or the names of knowledgeable advisors, call (516) 938-5007 or (516) 935-7346 or visit vebaplan.com.
The information provided above is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
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A Corn Field Baptism
By Earle Raun
In August, an irrigated corn field in Nebraska is a couple feet taller than your head and frequently muddy underfoot. Away from the road - in the middle of 160 acres - walking through it often reminds me of the years I studied mosquitoes in Florida jungles. The mosquitoes can be just as bad, with the same kind of humidity and temperatures. The big difference is the lack of dangerous wildlife, such as rattlesnakes.
Toward noon one hot August day, I had completed checking a field for insects. The pickup, a cool drink of water and my lunch were a half mile away, on the other side of the field. Walking fast, parting the corn leaves at each step, visibility permitted me to see barely beyond the next step.
Suddenly I skidded to a halt and jumped back, but I was too late. A step-and-a-half in front of me, all four feet planted menacingly and with tail up, was a beautiful black, furry creature...complete with a white stripe! Sure enough, liquid "perfume" was headed my way.
For the next several days my boots had an identifiable aroma, which followed me faithfully. I was most fortunate that my jump back took me beyond the "perfume's" trajectory, and only my boots received that baptism.
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FieldNotes Steering Committee Meets
The FieldNotes Steering committee met on Tuesday October 15, 2002 at the Astrix Technology Offices in Edison, New Jersey. This years meeting was certainly much less stressful than last years meeting which occurred on Sept 11, 2001.
A few of the important statistics mentioned are:
426 FieldNotes Licenses sold to date, of these 155 licenses have been purchased by Field Research Organizations.
335 FieldNotes users have called Astrix Technical Support through Sept 30,2002. Telephone support hours are up this year despite a decrease in the number of trials. The causal agents for this increase were unknown but did increase the telephone support significantly over last year. Total support call volume extrapolates to a total volume of 2020 hours of technical support in 2003. Someone commented that 2080 hours constitutes a years worth of work. Obviously, they do not work in the agriculture industry as that represents only a plan-ting or harvest season certainly not a year.
Members of the GLP associated groups of BAYER, BASF, and Astrix staff as well as NAICC members Dan Ramsdale, Michelle Mitchell, David Rigsby and Bill Tarter, Jr. attended the Steering Committee Meeting. Also in attendance were Rob Hoag, Bayer Crop Science Field residue Program manager and Allied Industry Committee Chair-person Daryl Wyatt now of Bayer Crop Sciences. Richard Johnson represented BASF USA.
Topics of discussion ranged from Sponsor Validation, Principal Field Investigator Soft-ware Verification, Annual Maintenance Fees, Continued Reduction of GLP Work-loads, Projected Availability of Updates as well as Enhanced PI Verification of Software Builds or Releases.
Rich Albert, President of Astrix Technology Group reported that current plans are to release a FieldNotes update in early December of 2002 to fix a few bugs discovered during the 2002 season. He further indicated that the GLP market place has matured and Astrix expects little to no growth in the number of contractors who purchase the software.
One of the bugs to be corrected is a real jewel. It combines FieldNotes, Windows XP and the transition to Daylight Savings time. Somehow, the FieldNotes software may think it is not properly installed on the machine and needed the KEY CODE to be reinstalled. The solution is keep your key code somewhere on the desktop of the same notebook you have FieldNotes on. If you are fouled up on Daylight Savings Time, the code is handy and available to reenter. You can then go on about your trial. By the time you read this Astrix should have sent out an email regarding this issue, just a little reminder is case you missed it. Several horror stories of laptops lost, stolen or destroyed reinforced the need for consistent timely and high quality backups.
Astrix anticipates releasing a significant upgrade, resulting in a new version, in early September of 2003.
The projected new release should have several new features:
- 32 bit capability that should produce better screen quality and sizing.
- Greater flexibility of application types.
- Archiving module capable of archiving to a CD burner.
- Improved capacity to handle seed treatments, transplanted crops and greenhouse single plant per pot studies.
- Better site record handling outside of
a trial.
Utilizing the same Test Substance container for multiple trials has presented record keeping problems in the past.
This should be rectified in the December 2002 release.
A significant amount of time was exhausted discussing the annual maintenance fee charged to field contractors. Of the $600.00 fee, Mr. Albert indicated that approximately $400.00 of the maintenance fee goes to development costs for product upgrades while $200.00 was allocated for telephone support. It was determined that the annual maintenance fee would remain unchanged, one of the few constants in our ever changing industry.
The sponsor representatives present indicated their need for a more thorough Field Investigator verification of new software builds or releases. As a result of this, Astrix will post the BAYER SOP for PI verification on their website. It is strongly recommended that all contractors plagiarize to their hearts content and implement within their own shop.
A very positive aspect of the Steering Committee was the desire of the sponsor companies BASF and BAYER to standardize what they want from FieldNotes and how to achieve those ends. This will certainly make our jobs as PFIs a little easier.
The were numerous issues specific to our European colleagues which we discussed. Their ideas of GLP calibration procedures and frequency continue to amaze this researcher. THEY ARE NOT RIGHT OR WRONG, JUST VERY DIFFERENT.
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New Member profile
Melody Edwards, Ag-Quest Inc.,
Lacombe, Alberta
Melody Edwards is one of NAICC's newest members. She is a principal investigator in pesticide regulatory research for Ag-Quest Inc., of Canada. Melody is in-volved in conducting GLP residue trials, environmental fate trials, C14 plant metabolism studies and non-target studies, as well as plant variety and efficacy trials.
Melody has a Land Resource Manage-ment diploma from Olds College, where she was a double major in Soil and Water Con-servation and Soil Classification and Recla-mation. She began her employment with Ag-Quest in 1995 as a research technician in Minto, Manitoba. She transferred to Lacombe, Alberta, in 1998 and was promoted to principal investigator in 2000.
When asked why she joined the NAICC, Melody responded, "To give me a chance to meet people in our industry, keep up-to-date with current issues affecting the industry, to see how others are dealing with issues and to learn as much as I can." She says she wants to "learn more about the NAICC and their influence on the industry this year as a new member."
Regarding her position within the industry in the future, Melody says, "I hope over the years I can become more influential on the changes that are happening in our industry".
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