Unveiling the Progress of New Wastewater Mains Construction
Project Overview
Approximately 4,300 feet of 30-inch diameter wastewater main is set to be constructed. The pipelines will be installed through tunneling, a complex yet efficient process. Dallas Water Utilities (DWU) took the initiative in 2022 by issuing a public notification letter, and an update letter regarding the project's completion was provided earlier this year in July. This shows the commitment of the authorities towards the timely completion of the project.
As of November 15th, around 60% of the pipeline installation has been completed. However, due to the demobilization of a subcontractor after disputes regarding payment, the construction efforts had to be put on hold. Now, the City is in the process of hiring a new contractor to ensure the smooth continuation of the project.
Upcoming Council Review
On Wednesday, December 11th, the City Council will be examining the authorization of the construction services contract with the new contractor. This is a crucial step as it will determine the timeline for the completion of the project. If the contract is approved, the contractor is expected to mobilize for construction in late January/early February 2025, with the aim of completing the project by summer 2025.
The existing site and open shafts have been deemed secure and will continue to be monitored by DWU staff. This ensures the safety of the construction area and surrounding environment during the waiting period.
Unraveling the Farm Bill Dilemma and State Agricultural Efforts
At the Federal Level
The Farm Bill is a crucial bipartisan package of legislation that typically undergoes reauthorization every five years. It regulates and funds various food and farm programs, ranging from USDA conservation initiatives to the Supplemental Nutrition Assistance Program. However, the 2018 Farm Bill, which was extended in 2023, expired in fall 2024 and now awaits an uncertain fate as the congressional lame-duck session approaches.
Larew explained that coming into 2023, there was an intention to learn from the pandemic and create better provisions to safeguard farmers and the U.S. food system. But as deadlines passed, perspectives shifted, and now there is a strong likelihood of another extension, bringing uncertainty for the next year. He emphasized that passing a Farm Bill is challenging even in a normal year, let alone when it is low on the priority list of a new administration. Larew hopes the president-elect's plans to cut government spending do not affect the Farm Bill and will continue to advocate that it cannot be balanced on the backs of farmers.
As Part of the "Farm Bill Limbo" Panel
Larew joined DTN Progressive Farmer Ag Policy Editor Chris Clayton and Cheryl Tevis, an ag-focused writer with the Iowa Writers' Collaborative, on the "Farm Bill Limbo" panel. The other panelists shared similar concerns about potential changes in agriculture policy from the upcoming administration, including tariffs, mass deportations, and the conflicting interests of Robert F. Kennedy, Jr. and Brooke Rollins. Tevis expressed doubt that Congress would reach an agreement on the Farm Bill before the end of the year.
Before the panel, Iowa Farmers Union members shared their experiences with USDA programs such as cover crops subsidies, conservation easements, energy programs for freezer upgrades and solar panel installations, and local food procurement funding. Shaffer Ridgeway, a union member and vegetable farmer from Waterloo, highlighted the challenges faced by specialty crop farmers in utilizing these programs on their smaller-scale farms and expressed concern that their removal in the next Farm Bill could lead to increased skepticism among farmers.
At the State Level
Iowa Farmers Union President Aaron Lehman began the Saturday sessions by providing an overview of the union's achievements in 2024. Membership growth has been consistent over the past 12 years, and Lehman commended union staff and members for their opposition to the sale of a nitrogen fertilizer plant to Koch Industries and their successful Farmers Union Day at the state fair.
Lehman also emphasized the union's efforts to oppose a lawsuit aimed at dismantling a federal provision that protects wetlands. By becoming intervenors in the lawsuit along with other groups, the union is ensuring its presence at the table to defend important environmental protections. Additionally, Lehman highlighted the union's success in securing the first-ever state-funded procurement of local food in collaboration with the Iowa Food System Coalition. Union members were invited to the local food policy summit to discuss their work and future plans to grow the Iowa local food economy.
Lehman concluded by stating that there is much more work to be done in the coming year. It requires collective efforts at the countryside level, around community tables, and on farms to make a real difference from the ground up.
Unraveling the Complexities of Farm Estate Planning
Problem: A Family in Good Position with a Growing Estate
D.O. and their spouse find themselves in a favorable situation. They have a substantial family, with three kids and eight grandkids. One son actively farms with them, while the others work outside the farm. Their business is structured through a C corporation that holds various assets, including machinery, grain, livestock, and a bit of land. However, their estate is expanding beyond their immediate needs, leading them to consider gifting $18,000 of corporate stock to each child annually around Christmas. This raises the question of whether this is the right approach to begin the transfer of the farm.It's a complex situation that requires careful consideration of the pros and cons. On one hand, they want to involve their children and start the process of passing on the family legacy. On the other hand, they need to ensure that their financial well-being is not compromised.
Solution: The Merry and Bah Humbug Aspects of Christmas Gifting
Annual stock gifting through the C corporation presents both advantages and challenges. The merry side includes reducing the taxable estate, making the children feel involved, and allowing for the stewardship of the gift while still maintaining control and income. The corporation can continue to pay salaries and rent personal ground, while the gift simply shifts a portion of equity. Additionally, it may qualify for valuation discounts, benefiting the gift and estate strategies.However, there are also the bah humbugs to consider. C corp stock is not as straightforward to gift as other entities. Profits remain within the company, and to get money to shareholders, various options such as salaries, dividends, or loans need to be considered. Salaries require material participation and FICA tax, while dividends generate corporate and personal taxes. Loans to shareholders can pose risks to the business and must be repaid with interest.
Gifting Strategies for Non-Participants
In my professional experience, giving C corp shares to non-participants often leads to complications. It's not a recommended approach. If this decision is made, it's crucial to have a well-defined "instruction manual" for the gift. The operating agreement should outline management rules, voting requirements, and funded buy-sell agreements at discounted values.Alternatively, exploring options like gifting stock to the farm heir and cash to others or gifting land in an LLC can provide more flexibility and avoid potential constraints. Planning the estate distribution strategy first and aligning the gifting strategy with it ensures that annual gifts contribute to the long-term plan rather than causing problems.