University of Nebraska Extension - Holt/Boyd News Column for the Week of September 22, 2024

NEBRASKA EXTENSION NEWS COLUMN

NEBRASKA EXTENSION EDUCATOR - HOLT/BOYD COUNTIES - LaDonna Werth
NEBRASKA EXTENSION EDUCATOR - HOLT/BOYD COUNTIES - Amy Timmerman
NEBRASKA EXTENSION EDUCATOR – HOLT/BOYD/GARFIELD/LOUP/WHEELER COUNTIES – Bethany Johnston
NEBRASKA 4-H ASSISTANT - HOLT/BOYD COUNTIES - Debra Walnofer

FOR WEEK OF: September 22, 2024

September 21-22: Nebraska State 4-H Archery Championships, Heartland Public Shooting Park, Alda, NE

September 28: Nebraska Youth Smallbore Silhouette Invitational Registration, Pressey Wildlife Management Area, Broken Bow, https://docs.google.com/forms/d/e/1FAIpQLSfPseKiNHZm_gCbW8evFVNnarVh-M1lObpCwrcy-YQ7KTN1Jw/viewform

October 1: DUE: Clover Kid Record Books, Achievement Award Application, Diamond Clover Awards, Club of Excellence, Outstanding 4-H’er Career Award, Leader/Member Certificates in County Office

October 1: In-Person Beef Quality Assurance (BQA) and Beef Quality Assurance Transportation (BQAT), 4:00pm - 6:00pm, Holt County Annex Building, https://bqa.unl.edu/training-events

October 5: State 4-H Air & Smallbore Pistol Championships, Custer County Fairgrounds, Broken Bow

October 6-12: National 4-H Week


Finding Focus – Start of the School Year

The school year has already begun which means the slew of afterschool activities and homework assignments have returned. As families are pulled in different directions for school, work and practices, time as a family comes at a premium. Making efforts to build the focus of your youth could decrease time spent on homework to free up more time for family activities. Creating a permanent, designated study space is one way to build your youth’s focus. Here are a few items to keep in mind when creating the study space:

  1. Make It Work For You – Every youth is different and has different needs. Some youth prefer a quiet corner in their room while other youth may prefer to be close to a parent for help at the kitchen table. Just make sure that the traffic and noise of other family members do not become a distraction.
  2. Manage the Senses – Lighting and noise issues are very common distractions. Tired eyes have more difficulty transferring new information into memory. To keep sharp, make sure to provide adequate overhead lighting to limit squinting. Also, check that electronic devices like laptops and tablets are set at a comfortable level.
  3. Make It Comfortable – Temperature and seating can make a difference in a youth’s ability to concentrate. Make sure that the study space keeps the youth relaxed, but alert. It is also important that the youth has adequate space to spread out books, papers and materials to make the space efficient. While a bed may make a great space for spreading out, it may prove too relaxing. Consider a cushioned chair with generous table space. Also, it is important that the chair fit the youth. Dangling legs and hunched shoulders can turn discomfort into a disruption.
  4. Keep It Organized – Another way to increase the efficiency of the space is to keep all supplies and materials readily available and easy to find. Any time spent looking for the lost blue marker is time spent away from the task and an opportunity for further distraction. Organized space provides a launching pad for organized study. Keep clutter at a minimum using cubbies, canisters and boxes. A calendar, planner or to-do list can also keep homework assignments and activities prioritized for on-time completion.
  5. Limit Distractions – While the computer and television can be excellent sources of educational content, they also provide limitless distraction. If the youth believes they can focus better with a little background noise, try some recorded music or search for white noise options.
  6. Make It Your Own – If the youth is expected to spend considerable time in the study space, let him or her decorate the space with posters, pictures or artwork. These items could provide creative inspiration for the youth’s next essay or art project.

For more information about positive youth development through Nebraska 4-H, visit 4h.unl.edu/pyd

Source: Jennifer Epp – 4-H Youth Development Educator (UNL For Families – September 22, 2024)


Ideas for Estate and Transition Planning: Life Insurance Backed Buy-Sell Agreement

Life insurance can be a key tool for farm and ranch businesses to provide tax-free death benefits at the death of the insured if the policy is structured correctly. This article will discuss using life insurance to fund a buy-sell agreement.

Sometimes farms and ranches want to limit who inherits farm or ranch assets at the death of an owner. Coming up with cash at the death of an owner can be difficult for the surviving parties. One solution to this issue could be the use of a life insurance policy to fund a buy-sell agreement.

To illustrate how this tool could work, we have two people. A parent and an on-farm child. The parent is the insured, and the on-farm child will be the owner and beneficiary of the policy.

The parent owns the majority of the farm assets. The on-farm child has siblings who are not involved in the operation. According to the parent’s estate plan, the on-farm child will have to “buy out” their siblings at the death of their parent.

To ensure the on-farm child has enough cash at their parent's death, the on-farm child will do two things. First, they will enter a formal buy-sell agreement with their parent, stating that at their parent’s death, they would buy any farm/ranch asset from the estate, that they do not inherit, for a specific price. Second, the on-farm child will purchase a life insurance policy on the parent. The on-farm child will be the owner and beneficiary of the policy. At the parent’s death, the on-farm child would receive the death benefit, tax-free (if the policy is structured correctly), and purchase the farm from the estate.

Things to consider:

Know exactly what is being included in the buy-sell agreement. In the scenario above, the on-farm child is only purchasing farm/ranch assets that they do not inherit.

Is it legal? Get a properly written buy-sell agreement. Make sure the agreement clearly outlines who has the right to purchase, what assets that are included, any conditions of the sale, when the sale can be made (at death), and how the purchase price is determined. Make sure the agreement is dated, signed, notarized, and placed with the other estate documents.

Is it affordable? The crucial question is if this tool is even feasible. The cost of a life insurance premium is based on the age and health of the insured, the amount of the death benefit, and the type of policy. For many families, the owner generation is an advanced age by the time they set up or share their estate plan. Sometimes the owner generation is simply not insurable. In other cases, the cost of the insurance is so high, this is an unusable tool. It should also be noted that some policies require the payment of the premium for the life of the policy. This is a long-term expense to the policy owner.

What is the purchase price? One of the biggest struggles families face when using this tool is determining the purchase price in the buy-sell agreement. This is difficult because it is difficult to determine the true value of the assets at the time of the insured’s death, which could be decades from now. Often, we will use a future appraised value, or tax assessed value.

What type of policy? There are many different types of life insurance policies. Work with a professional who understands the purpose of the agreement. They will help you select the right product for your needs. Term policies often don’t work in this scenario, because they expire after a certain amount of time either at a specific age or after a number of years.

Are there more than two people involved? Life insurance backed buy-sell agreement as illustrated in this article works well when there is an owner and on-farm heir or two partners in business together. However, if there are more people involved in the ownership of the farm or ranch assets, these buy-sell agreements can get significantly more complex.

How will the life insurance be owned? Recently, buy-sell agreements became more complicated with Supreme Court case Connelly v. US. Ownership of the policy for the purpose of buy sell agreements can be included in the estate if not structured properly.

Life insurance backed buy-sell agreements can be a useful tool. As always, work with a trusted attorney and insurance agent to develop these agreements.

Source: Jessica Groskopf is a Regional Extension Economist with the Center for Agricultural Profitability at the University of Nebraska – Lincoln. Cindy Bojanski, CFP®,RICP® is a Financial Advisor at Coordinated Planning. (Center for Agricultural Profitability – August 23, 2024)


Hold the Net Wrap and Twine

Net wrap is an efficient forage binding method and significantly reduces harvest and storage losses compared to twine. According to a forage binding survey conducted by South Dakota State University (SDSU), net wrap was the most preferred method of forage binding (67%) compared to twine (26%) or both (6%) depending on the crop harvested or livestock being fed.

Oftentimes, to save time and labor, net wrap or twine is not removed prior to feeding hay to cattle. The SDSU forage binding survey reported 54% of producers removed net wrap or twine when feeding bales whole, but only 11% of producers removed it when grinding bales.

Whether it occurs by accident or simply out of boredom, cattle can consume some of this net wrap or twine, which then accumulates in the rumen. The buildup of forage binding material in the rumen can result in cattle weight loss, diarrhea, and other symptoms similar to hardware or Johne’s disease.

Research by North Dakota State University (NDSU) has shown that the rumen microbes do not digest plastic net wrap or biodegradable twine. Sisal twine does get digested but at a much slower rate compared to hay. In another NDSU study, steers were fed net wrap in a ration until 14 days prior to harvest to determine if the material would pass through the digestive system. However, there was still a significant amount of net wrap remaining in the rumen after 14 days.

In non-related livestock mortality cases, 26% of SDSU survey respondents had postmortem exams conducted by a veterinarian and 30% of those recovered net wrap from the animal.

Cows fed ground, net wrapped hay for 140 days in an SDSU study accumulated a softball-sized mass in the rumen consisting of 0.8 to 1.1 pounds of net wrap. The entangled mass of net wrap and feed measured around 3 feet in length when stretched out. Based on the amount of net wrap offered through the diet, about 53% of the net wrap was recovered through rumen evacuations. Research by Montana State University has shown similar results where 47% of the net wrap offered to cows was recovered from the digestive tract.

While grinding net wrapped bales may reduce the particle size compared to feeding intact net wrap, health issues can still occur. It is important to consider how failing to remove forage binding materials may affect rumen function and capacity of the cattle being fed long-term. Due to differences in diet and the amount of baled forages consumed, cows are likely to be more at risk than feedlot cattle. There is no treatment available for the buildup of forage binding materials in the rumen, so prevention is key to avoiding any health issues.

Source: Erin Laborie - Nebraska Extension Educator (BeefWatch – September 16, 2024)