Utilizing Tax Reforms, Incentives and Credit

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Utilizing Tax Reforms, Incentives and Credit

• Samuel Funk, Administrator
• Kansas Farm Management Association Program
• Kansas State University
• Presented to the 2004 Virginia Agriculture Summit
• February 24, 2004
• Omni Hotel, Charlottesville, Virginia

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Goals

• Public Good
• Private Operations

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Public Goals

• Tax Revenue
• Job Creation
• Maintain and Enhance Opportunities for Success
• Open/Green Space
• BALANCE

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Basic Goals

• Agricultural Commodity Production
• Further Processing
• Marketing
• Infrastructure
• Financial
• Technical
• Providers of General Goods and Services
• Multi-Use Facilities

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Private Farm Enterprises

• Maintain Existing Levels
• Number of farms
• Volume of transactions
• Encourage Growth
• Size of Operations
• Number of Operations

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Seasons of Change

• Centers of Production
• Liquidity of Financial Resources
• Regulatory, Societal, and Marketing
  Considerations
• Easy to Lose
• Difficult to Attract

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Reducing Burdens

• Affluent society desires more from those who
  participate
• Environmental efforts while
• Maintaining low cost supply
• Maintaining high quality
• Direct benefit seen from investment
• Structural Changes
• Taxed out of viability
• Taxed according to societal benefits (or return)

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Moderation vs. Viability

• Short-Term Moderation
• Tax burden eased
• Allayed fears
• Long-Term Viability
• Investment encouraged
• Ingenuity rewarded
• Resource base sufficient to support comprehensive
  structure

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Non-Traditional Venues

• Enterprise Analysis
• Business Planning/Preparation
• Leverage Funds
• USDA Grants/Support
• Private Investment
• Public Support (directing resource assistance)

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Non-Traditional Agriculture

• Pharma Crops
• Direct Marketing Systems
• Business Development/Diversification

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Agricultural Business

• Processing
• Food
• Feed
• Industrial
• Marketing
• Exports
• Technology

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Not Your Parents Farm

• Nor is it the assistance they thought they
• might need.
• Marketing
• Technical
• Business
• Proactive, Relational, Legal, Supportive