Employers can be liable for a worker’s violent acts

A recent decision by the Ohio Court of Appeals examines the issue of employer liability for a worker’s harmful acts.  The Twelfth District Court of Appeals clarified when an employer could be liable for injuries caused by a worker’s violent behavior, whether the worker is an independent contractor or an employee.

Worker’s violent behavior leads to a lawsuit

2014 Ohio Forage Enterprise Budgets

by: Barry Ward, OSU Extension, Leader, Production Business Management, Department of Agricultural, Environmental, and Development Economics

Newly updated Forage Enterprise Budgets for 2014 have been completed and posted to the Farm Management Website of the Department of Agricultural, Environmental and Development Economics. Updated Enterprise Budgets can be viewed and downloaded from the following website:

http://aede.osu.edu/research/osu-farm-management/enterprise-budgets

Forage Enterprise Budget updated for 2014 include: Corn Silage; Alfalfa Hay; Alfalfa Haylage; Grass Hay.

OSU Extension Enterprise Budgets are compiled on downloadable Excel Spreadsheets that contain macros for ease of use. Users can input their own production and price levels to calculate their own numbers. These Enterprise Budgets have color coded cells that allow users to plug in numbers to easily calculate bottoms lines for different scenarios. Detailed footnotes are included to help explain methodologies used to obtain the budget numbers. Budgets include a date in the upper right hand corner of the front page indicating when the last update occurred.

OSU Extension Joins Effort to Revise Agricultural Labor Camp Rules

By:  Francisco A. Espinoza

In fall of 2013, Extension, through the Ag & Hort Labor Education Program, joined the Ohio Department of Health’s Agricultural Labor Camp Rules Review Committee.  The Committee membership eventually had representatives from Farm Bureau, ODJFS, ODH, ABLE Legal Services, county health departments, and agricultural employers from across the state.  Winter and spring Committee meetings were held, and suggested revisions were finalized by summer.  The following is a summary by Nolan Stevens, J.D., Public Policy Officer for the Ohio Commission on Hispanic/Latino Affairs. To read more click here.

Ohio's Small Business Income Tax Deduction Increases

Larry Gearhardt, OSU Extension Asst. Professor, Taxation

Ohio Governor John Kasich recently signed a bill that, among other things, increases the small business income deduction from 50 percent to 75 percent of the first $250,000 in net business income.

In an effort to grow Ohio’s economy, last year the Ohio budget bill included significant tax law changes to deliver a $2.7 billion tax cut to individuals and businesses, over the course of three years. The changes included:

2014 Ohio Beef Enterprise Budgets

By:  Barry Ward, Leader, Production Business Management,  Department of Agricultural, Environmental, and Development Economics

Newly updated OSU Extension Beef Enterprise Budgets for 2014 have been posted to the Farm Management Page of the Department of Agricultural, Environmental and Development Economics. Updated Enterprise Budgets can be viewed and downloaded from the following website:

http://aede.osu.edu/research/osu-farm-management/enterprise-budgets

Beef Enterprise Budgets posted for 2014 include:

Market Steer Budget – Days on Feed – 232 (Corn/Soybean Meal Ration)

Market Steer Budget – Days on Feed – 250 (Corn/DDG Ration)

Yearling Market Steer Budget – Days on Feed – 182 (Corn/Soybean Meal Ration)

Yearling Market Steer Budget – Days on Feed – 190 (Corn/DDG Ration)

Market Heifer Budget – Days on Feed – 220 (Corn/Soybean Meal Ration)

Cow-Calf Budget – Spring Calving

These enterprise budgets are compiled on downloadable Excel Spreadsheets that contain macros for ease of use. Users can input their own production and price levels to calculate their own numbers. Detailed footnotes are included to help explain methodologies used to obtain the budget numbers.

Authors of these beef budgets include Dr. Steve Boyles, OSU Extension Beef Specialist; John Grimes, OSU Extension Beef Coordinator; David Dugan, Extension Educator, Agriculture and Natural Resources, Brown, Adams and Highland Counties; Stan Smith, Extension Program Assistant, Agriculture and Natural Resources, Fairfield County; Mike Estadt, Extension Educator, Agriculture and Natural Resources, Pickaway County; Jeff Fisher, Extension Educator, Agriculture and Natural Resources, Pike County; Barry Ward, AEDE, Leader, Production Business Management; and Scott Baldosser, AEDE Undergraduate Student, Agribusiness and Applied Economics.

Ohio’s Small Business Income Deduction Increases

By: Larry Gearhardt, Field Specialist, Taxation, OSU Extension

Ohio Governor John Kasich recently signed a bill that, among other things, increases the small business income deduction from 50 percent to 75 percent of the first $250,000 in net business income.

In an effort to grow Ohio’s economy, last year the Ohio budget bill included significant tax law changes to deliver a $2.7 billion tax cut to individuals and businesses, over the course of three years. The changes included:

  • A small business tax cut that enables owners/investors to deduct from taxable income 50 percent of the first $250,000 in net business income.
  • A 10 percent personal income tax cut to be phased in over three years. In 2013, Ohio tax rates were reduced by 8.5 percent.
  • New assistance for lower-income Ohioans in the form of an Earned Income Tax Credit (EITC) equal to five percent of the amount claimed for the federal EITC.

An improving economy is generating stronger than expected state revenue, resulting in additional tax cuts. The Governor’s Mid-Biennium Review (HB 483) included the following additional tax relief:

  • ADDITIONAL SMALL BUSINESS TAX CUTS – For tax year 2014, the personal income tax deduction on small business income will be increased to 75 percent of the first $250,000 in net business income. (Under current law, the deduction does not affect the school district income tax base).
  • ACCELERATING THE INCOME TAX CUT – Next year’s scheduled one percent cut in income tax rates is moving up to be effective retroactive to January 1, 2014. This change will give taxpayers the full 10 percent income tax cut that was not scheduled to go into effect until January 2015.
  • NEW TAX RELIEF FOR LOW-AND MIDDLE-INCOME OHIOANS – Ohio is doubling the EITC from 5 to 10 percent of the federal credit. In addition, the state is increasing the personal exemption for Ohioans earning less than $40,000 a year from $1700 to $2200, and for those with incomes between $40,000 and $80,000 a year from $1700 to $1950.

Business income is defined as income from the regular conduct of a trade or business, including gains and losses. It also includes gains and losses from liquidating a business or selling goodwill. The deduction applies only to the business income apportioned to Ohio under existing law.

The business deduction percentage reverts back to 50 percent for taxable years after 2014.

2014 Farm Bill Decisions: Payment Yield Update Option

By: Carl Zulauf, Ohio State University, and Nick Paulson, Jonathan Coppess, Gary Schnitkey, and Todd Kuethe, University of Illinois at Urbana-Champaign

 

The 2014 farm bill provides the owner of a Farm Service Agency (FSA) farm with a one-time option to update the farm’s payment yield for covered crops.  This article will discuss this decision.  It concludes by recommending that all producers consider updating yields if updated yields are higher than current yields; however, updated yields may be surprisingly low. To read the full article Click Here

Meetings Offer Insight for Farmers on 2014 Farm Bill

By: Sam Custer, OSU Extension Educator 

Farmers interested in learning more about the 2014 Farm Bill and its impact on commodity programs can hear from industry experts during meetings scheduled for August 18, 19 and September 16 who will provide insight into the legislation and its impact on agriculture.

The 2014 Farm Bill’s safety net requires farmers and landowners to elect which program design they prefer based on what they think will be most effective for their operation, particularly in conjunction with crop insurance.

OSU Extension is the outreach arm of Ohio State University’s College of Food, Agriculture, and Environmental Sciences and will be co-hosting the events in cooperation with Farm Credit Mid America, USDA Farm Service Agency and Farm Bureau.

Significant analysis is needed to compare the new programs and provide valuable information to the farm’s decision makers, who will be locked into the program choice for the life of this farm bill.

A panel discussion of the farm bill will include: Jon Coppess, clinical professor of law and policy at the University of Illinois and Carl Zulauf, professor of commercial agricultural policy and commodity futures and options markets at The Ohio State University. Adam Sharp, vice president of public policy with the Ohio Farm Bureau will moderate the meetings

The meeting will cover several issues including:

  • Crop safety net decisions
  • Commodity programs including dairy
  • Crop insurance

The meetings are scheduled as follows in the table:

Date Time Location Address
August 18, 2014 1:00 PM Fisher Auditorium, OSU OARDC 1680 Madison Ave.Wooster, Ohio 44691
August 19, 2014 9:00 AM George M. Smart Athletic Center, Defiance College 701 N. Clinton Street.Defiance, Ohio 43512
August 19, 2014 7:00 PM Boyd Cultural Arts Center, Wilmington College 1870 Quaker Way, Wilmington, OH 45177
September 16, 2014 2:00 PM Farm Science ReviewVice President’s Tent 135 Ohio 38, London, OH 43140

There is no cost to attend the meeting but registration is requested. An online registration form can be found at http://go.osu.edu/summer2014farmbill . The deadline to register is August 8. To download the Ohio Farm Bill Flyer Click Here

 

 

 

Farm Transition, Estate and Retirement Seminar

By: Sam Custer, Extension Educator

Do you have a concrete plan in place to transition the family farm to the next generation? OSU Extension, Darke County will offer a Farm Transition, Estate and Retirement Seminar on Wednesday, August 6 in Greenville. This event is for all generations involved with the family farm.

The purpose of the program is to offer tools and education to farm owners who are preparing to transition the farm to the next generation. Topics include trusts, gifting, protecting farm and personal assets, federal estate taxes, insurance options, retirement income and security, family communication and much more.

Speakers include Robert Moore, Attorney, Wright & Moore Law Company; Todd Durham, Second National Bank and Sam Custer, OSU Extension Educator Darke County.

Seminar check-in begins at 8:30 am with the program scheduled from 9:00 am until 3:00 pm. Cost of registration is $15 per farm family and includes lunch and a resource notebook. The seminar is made possible with generous support from Second National Bank.

The program will be held at the Second National Bank Conference Room, 499 South Broadway, Greenville, Ohio 45331. Click here for the 2014 Transition Estate and Retirement Seminar Flyer 

Registration and payment is required by July 29. Registration forms are available online at www.darke.osu.edu.

Contact Sam Custer, OSU Extension, Darke County, for more information at 937.548.5215 or custer.2@osu.edu.

One Perspective on High Yield for 2014 U.S. Corn and Soybeans

by: Carl Zulauf, Professor, Ohio State University, July 2014

Overview:  With U.S. corn and soybean conditions near record good-to-excellent levels and the June acreage report behind us, market discussion is turning to the possibility of a high yield (see June 16 farmdoc article by Darrel Good, “Potential for U.S. Average Corn and Soybean Yields, available http://farmdocdaily.illinois.edu/2014/06/potential-for-us-average-corn-and-soybean-yields.html). This article will try to add perspective to this discussion.  While most will focus on the numbers, the author’s focus is to illustrate methods that use historical yield data to assess what are high yields.  It is important to understand that these methods will give different estimates of high yields over different periods of data.  In short, the methods are data sensitive.  In addition, other methods exist.

Data: This study uses harvest yield per acre for states and the U.S. over the 30 crop years from 1984 through 2013.  Selection of the study period is a critical factor.  A longer period means more observations and thus, usually, better statistical properties for the analysis.  But, it also tempers the importance of more recent yields, which may contain more information about current yield technologies and weather patterns.  Trade-offs exists and reasonable analysts can select different periods.  The author likes 30 years as a balance between statistical properties and the potential information value of more recent yields.  Source for the yields is the U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS) Quick Stats website, http://www.nass.usda.gov/Quick_Stats/

Methods:  The base method starts with estimating a linear trend line yield using linear regression techniques.  Figures 1 and 2 presents the annual U.S. harvested yield per acre for corn and soybeans, respectively, from 1984 through 2013.  The figure also contains the linear trend line estimated by regression.  A key attribute of a trend line is the slope of the line.  For this particular analysis, the slope is interpreted as the annual rate of increase in yield from 1984 through 2013 given a linear time line and the use of regression techniques.  Given these assumptions, the U.S. yield of corn increased 1.73 bushels per acre per year while the U.S. yield of soybeans increased 0.43 bushels per acre per year (Figure 3).  The yield of corn increased 4 times faster than the yield of soybeans over this period.

High Yield Estimate 1:  The first set of estimates is based on asking what the existing record U.S. yield is.  They are 164.7 bushels per harvested acre for corn and 44.0 bushels per harvested acre for soybeans.  Both occurred in 2009.

High Yield Estimate 2:  A related question is what would U.S. yield be if every state attained its record yield at the same time?  This question builds upon an observation made by Gary Schnitkey in his March 25, 2014 farmdoc article, “Causes of High U.S. Corn Yields: Evaluation of County Yields,” available http://farmdocdaily.illinois.edu/2014/03/causes-high-us-corn-yields.html).  Gary observed, “corn yields have to be above average across the vast majority of the corn-belt counties for the U.S. to have a corn yield significantly above trend.”  Thus, the historical record high yield in each state was identified and this yield was then multiplied by the state’s harvested acres projected for 2014 by USDA, NASS in the June 30 Acreage report.  The estimated production was then summed across all states and divided by the number of U.S. harvested acres projected for 2014.  Yields of 169.8 and 46.9 resulted (Figure 4).  These yields are almost 5 and 3 bushels per acre higher than the record U.S. yield for corn and soybeans, respectively.  This difference illustrates that it is very unusual for all of the U.S. to have the same weather, in the case record yield weather.  Given this observation, it is worth noting that the highest share of corn rated very poor and poor is only 10% in Minnesota and 9% in Kansas in the June 30 Crop Progress report.  For soybeans, the comparable shares are 11% for Louisiana, 10% for Minnesota, and 9% for Arkansas.  Thus, while some areas in the U.S. are not favorable due to dryness or excessive moisture, the current crop conditions report suggests the U.S. record yield estimate based on record state yields is a relevant consideration.

High Yield Estimate 3:  As noted above, the record U.S. yields for corn and soybeans occurred in 2009.  But, it seems reasonable to assume that the entire yield distribution is trending upward, not just the average yield.  One assumption is that record high yields are trending up at the same rate as average yield.  To illustrate for U.S. soybeans, the high yield is 44.0 bushels per harvested acre in 2009 (Figure 4).  Since U.S. soybean yield is increasing 0.43 bushels per year, the trend adjusted record U.S soybean yield for 2014 is 46.1 bushels (44.0 + 5 years times 0.43) (Figure 5).  For U.S. corn, the comparable yield is 173.3 bushels per harvested acre.  The same type of adjustment can be made to each state yield using its record yield adjusted for its trend and brought forward to 2014.  For example, for Illinois corn, record yield is 180.0 bushels in 2004 and its trend yield increase is 1.75 bushels per year.  The resulting 2014 trend adjusted high yield estimate is 197.5 bushels (180 + 10 years times 1.75).  The U.S. high yield estimate that results from applying the trend adjustment to state record yields is 177.7 for corn and 49.3 for soybeans (Figure 5).  It is important to underscore the assumption that record yield is increasing at the same rate as average yield.  Disagreement exists about this assumption, but disagreement exists on both sides — that record high yields are increasing faster and are increasing slower than average yields.  Whatever your view on this issue, it is important to understand the role of this assumption in deriving the third set of high yield estimates.

High Yield Estimate 4:  The fourth high yield estimate utilizes only information from the trend line regression.  It is common to forecast a trend line into the future.  For example, for 1984-2013 yields and using a linear regression, the 1984-2013 trend line projects a trend average yield of 158.5 for U.S. corn and 44.2 for U.S. soybeans.  Since the trend yield is the middle of the yield distribution, trend yields have a 50% chance of occurring.   Higher yields have a smaller chance of occurring.  We can utilize the estimated variation around the trend yield, called its standard error, to obtain estimates of the probability of yields higher than trend yield.  I have calculated the yields that have a 2.5% and 16.5% chance of occurring.  For corn, the variation of historical corn yields around its trend line suggests there is a 16.5% chance of a yield equal to or greater than 170.4 and a 2.5% chance of a yield equal to or greater than 182.4.  For soybeans, the variation of historical yields around its trend line suggests there is a 16.5% chance of a yield equal to or greater than 46.8 and a 2.5% chance of a yield equal to or greater than 49.4.

Summary Observations:  The current crop conditions report suggests that yields are likely to be above trend line.  History and statistical methods can give us some idea of what high yields might be.  It is important to use a variety of methods and data.  When the different methods and data used in this report are combined, the 30 years of U.S. and state yields from 1984 through 2013 suggest that, with good weather throughout the growing season over most of the U.S., a U.S. corn
yield in the low-to-mid 170s and U.S. soybean yield in the 47-48 range is attainable.  Higher yields could occur but the odds of such yields based on historical yields is very small. 

This publication is also available at http://aede.osu.edu/publications.