Politics of Horses – starts for us with our state government
Here's a link to the 2007 Michigan Equine Survey recently made available. USDA
President Bush signed
into law the Economic Stimulus Act on February 13. The bill is intended to
provide a jump-start to the lagging
The first incentive would increase the so-called Section 179 expensing allowance for horses purchased and placed into service in 2008 from $128,000 to $250,000. This expensing allowance also applies to farm equipment and most other depreciable property. Once total purchases of horses, and other eligible depreciable property, during 2008 reach $800,000, the expense allowance goes down one dollar for each dollar spent on eligible property over $800,000.
The second incentive brings back 50% first-year bonus depreciation for horses and most other depreciable property purchased and placed in service during 2008. “Bonus depreciation was first passed in 2002 as a way to stimulate the economy. It phased out at the end of 2004,” noted Hickey. “It was a benefit for the industry then and it should be again.” It does not apply to property that has a depreciation life of over 20 years.
Also, as was the case when bonus depreciation was available in 2003 and 2004, the property must be new, meaning that the original use of the horse or other property must begin with the purchaser for the property to be eligible. “Original use” means the first use to which the property is put, whether or not that use corresponds to the use of the property by the purchaser. “There is no limit on the amount of bonus depreciation that can be taken, as there is with the expense deduction,” noted Hickey.
To illustrate the expensing allowance, assume a horse business purchases $750,000 of depreciable property in 2008, including $650,000 for horses. That business can write off $250,000 on its 2008 tax return and depreciate the balance. If instead, purchases were $900,000, the expense allowance would go down by $100,000. In either case, the amount of the purchases not expensed may also be eligible for bonus depreciation, as explained below.
To illustrate bonus depreciation, assume that in 2008 a business pays $500,000 for a colt to be used for racing and $50,000 for other depreciable property, bringing total purchases to $550,000. The young colt had never been raced or used for any other purpose before the purchase. The business would be able to expense $250,000 (as explained above), deduct another $150,000 of bonus depreciation (50% of the $300,000 remaining balance), and take regular depreciation on the $150,000 balance. Questions? American Horse Council
Preliminary Report Released at
Michigan Equine Conference, December 12-13, MSU Kellogg Center, Lansing
A Preliminary Report was released profiling the Michigan Equine Industry, gathered from surveys sent out to 6,000 recipients in a sampling (not census). With a very respectable 60% return, the research group has profiled today's Michigan equine industry person and horse. The last survey was taken in l996. The partnership that made the survey possible was Michigan State University, Michigan Horse Council, Michigan Equine Partnership and MDA/National Agricultural Statistic Service.
From the report:
There are 155,000 horses in Michigan, up from 130,000 in l996.
60% are in non-competitive environments
There are 440,000 acres in horse facilities.
There are 2,300 indoor arenas.
5.5 million miles were traveled by horse trailer in Michigan/year.
The largest number of horses per breed is in the American Quarterhorse (41,000);
second is the Paint (14,000);
third is Arabian (12,500);
4th is Standardbred (12,000);
5th Belgian 7,700):
6th Thoroughbred (7,100).
Principle Use:
57,500 Recreation; 21,500 Idle; 21,000 Breeding; 17,300 Trail riding; 12,600 Work; 5,700 Racing.
Greatest number by county: Oakland with 6,900. Washtenaw is next with 6,300. Livingston has 5,900. Jackson County has 5,700. Hillsdale has 5,500. Lapeer has 5,100.
I'll put up more of these statistics next week. This report will be available on the MEP website at end of January. Actual survey website and analysis wil be up June 2008.
MEP Conference publicized description:
"A united effort to create awareness, market and promote the many facets of Michigan's equine industry and examine the needs and desires of Michgian's equine industry members," describes Mitch Irwin, MDA director of the Conference.
Conference break-out sessions were on: Economic Develpment; Education; Promotion and Marketing; Land Use and Envrionment; Legislation and Regulation; Racing Revitalization; Research.
We can expect "the unveiling of the Michigan Equine Survey results and the feasibility study for an international equine park in Michigan, " promises MEP.
Keynote speakers: Wednesday evening, Pat Day, retired Hall of Fame jockey; Thursday keynote spekers: Mike Yoder, N. Carolina State U, and Cara Stewart, Kentucky Equine Education Project.
For more infor call Michigan Equine Partnership at 517-372-1500 or visit the website http://www.miequine.com.
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Pigeon River restrictions on riding - input is still possible for horse riding. Waterloo Hunt representatives report on 11/13/2007 that the "DNR wishes to restrict snowmobilers, mountain bikers and horsemen to specific areas of the Pigeon River Country, notably barring all three from cross country (“small trail”) riding. All three activities will be permitted on county and state forest roads; this will be the extent of snowmobile use. Horses and mountain bikers will each have dedicated trails with a limited amount of sharing. Following these changes, horses will have access to roughly 300 miles of roads/trails, though many are not loop rides, and the majority are roadway miles which expose horses to vehicular hazards. This is the first effort to revise the concept management plan for PRC’s 180 square miles in 30 years, and has been three years in the making. Review of the concept management plan was timely because 1) technology has evolved/we have scientific knowledge and data not previously available 2) the area around the forest has developed substantially since 1973 and 3) patterns of recreational use have changed significantly.
"A driving force behind this effort is to position Pigeon River as an area for wild life management (elk herd, particularly) and to maintain its wild character for hunters and anglers. Key to this is the original funding source/s for the property, which were state fish/game dollars and matching Pittman-Robinson money from the federal government."
According to Boynton and Herrick, Waterloo Hunt Club reps at the meeting, most h orsemen believe that the access allotted to them is dangerous as road riding is extremely dangerous and that perhaps a grass berm could be developed. They believe they contribute financially to trail maintenance and should be allowed more trail access to the Pigeon River region. Horsemen are prepared to pay a special tax perhaps through special-purhcase bridle tags to establish their right to ride.
Contact the DNR, your legislators (see legislative locator on this page.), the Michigan Horse Council and other interested riding groups in our state. 11/13/2007
Want to save on taxes? Ask your Congressional Representatives to support the Equity for Our Nation’s Self-Employed Act. This bill, HR 3660, is co-sponsored by Congressman Ron Kind (D-Wisconsin) and Congressman Wally Herger (R-California). Its passage would benefit the self-employed in the horse industry, and there are lots of those people!
What is it?
Today, most companies can treat the premiums they pay for health insurance as an ordinary business expense for all their employees, including the owners. This means that the cost is paid with pre-tax dollars that are not subject to FICA taxes.
But self-employed individuals (that is, sole proprietors or Schedule C filers) do not receive this benefit. Their premiums must be paid with dollars that are subject to the 15.3 percent FICA tax.
Health insurance premiums average almost $12,000 per year for family coverage. So HR 3660 would save a self-employed individual about $1700 annually.
What to do
Urge your Representative to support HR 3660. One especially easy way to do this is to visit http://www.copyrightdefense.com/congress.html. This useful site, created by Professional Photographers of America (PPA), makes it simple to send an email to your Representative on this issue. You get a model letter that you can — and should — customize for greater impact.
This is the future of political action for horse people: where fairly large geographical areas get together to promote land use and equestrian access: get involved:
CONNECTING ~ WHITE LAKE ~ HIGHLAND ~ MILFORD
WITH TRAILS ~ GREENWAYS ~ CONSERVATION EASEMENTS
MONDAY, OCTOBER 29, 2007 ~ 6:30 PM DINNER RECEPTION
WITH SPECIAL SPEAKER PRESENTATIONS
HIGHLAND STATION HOUSE ~ 205 W. LIVINGSTON ROAD ~ HIGHLAND
Discover how the non-motorized Trail Network and Greenways will affect our area, lives and
businesses while positively impacting real estate values. Learn about the new Government Tax
Incentives and opportunities for landowners and developers looking to preserve family farms and
natural resources using conservation easements. Delve with us into the vision for our future….
We can leave a legacy of clean air, earth and water for future generations to enjoy!
LIMITED SEATING ~ PLEASE RSVP BY OCTOBER 18 TO SHARON ~ 248.887.3970
OR HighlandEquestrianConservancy@gmail.comHighland Equestrian Conservancy
New equine education and research center opens at the U of Minnesota.
The comprehensive Equine Center has been designated as a Program of Excellence at the College of Veterinary Medicine and is squarely aligned with the University's goal to become one of the top three public research universities in the world," said University of Minnesota President Robert Bruininks. "But more than that, it meets a growing need of our state: Minnesota ranks among the top 10 states in horse population and the equine industry contributes almost $1 billion annually to the state economy, sparked by the passion and support of horse lovers like us." "This state-of-the-art facility will become a home for the Minnesota equine community," said Dr. Stephanie Valberg, DVM, PhD, Director of the Equine Center. "No other facility has been designed to give such compassionate, comprehensive care and to give so much back to horse owners.
Grand Opening of the University of Minnesota's Leatherdale Equine Center , October 15, St. Paul, Minnesota more
Mark your calendars for Dec. 12-13 to attend the Michigan Equine Conference. It's the beginning of a horse industry coalition for political recognition and developmental strategy to strengthen the horse industry in Michigan. The first Governor’s Conference on the horse industry was held in 1982 followed by the Michigan Conference on the Horse Industry in 1994. These conferences confirmed a commonality of goals and interests of horse enthusiasts, regardless of breed or discipline. The 2007 steering committee has been working diligently to ensure the best speakers and most important industry topics will be addressed for this years’ conference. contact MEP
2008 USDA Appropriations Bill passes using the old language relating to cutting off funding for activities related to the slaughter of horses. Now normal export, import and international transport of horses is unaffected. Health papers, quarantines, inspections remain under USDA control and function as before. (8/3/07)
Bad wording: (7/23) re funding for 2008 USDA: an anti-slaughter provision has been added that is so poorly written it would eliminate funding for import/export functions of USDA - such as health certificates, inspections and quarantines. Please be careful what you support in the next 30 days. Efforts by the AHC to clarify the situation are underway. See American Horse Council about Section 738 of the USDA '08 House Appropriations Billl. Call Kathie Luedeke at AHC.
The Immigration bill - the Y and Z Visas. See American Horse Council or The New York Times, June28
Farm owners, help shape U.S. wildlife conservation laws in 2007 House and Senate Ag Committes are NOW crafting next Farm Bill
A few 2007 AHC stats on horses in America:
The number of horses used primarily for recreational purposes is by far the largest segment of the horse population by more than one million. According to the Economic Impact Study, there are more than 1.4 million Quarter Horses being used specifically for recreational activities. Another 228,290 Thoroughbreds and an astounding 2.3 million horses listed under “other breeds” are involved in equestrian recreation.
We can break this information on the recreation industry down even further by specifying the effect by horse breed. Thoroughbreds have a $1.3 billion direct effect and a $3.4 billion total effect (including indirect and induced effects) on the GDP. Quarter Horses have an even larger impact with a $4 billion direct effect and $10.6 billion total effect. The rest of the breeds – classified in the “other” category – have a $6.6 billion direct effect and $18 billion total effect.
The American Horse Council’s Economic Impact of the Horse Industry on the United States study contains all of these statistics and more. The comprehensive study also analyzes racing and showing. industries.http://horsecouncil.org/pressreleases/2007_april_econrec.html
Who represents you in Washington?
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Here is a letter sent to me from Senator C.S. Brown regarding the Michigan Ag budget.T.E., Editor
Dear Tania:
Thank you for your interest in the Michigan Department of Agriculture (MDA) budget.
This is perhaps the most challenging of all budget cycles that I have had the opportunity to experience as a lawmaker. The states economy and the budget shortfall defy easy answers. Please know I will do my best to advance budget recommendations that protect and promote the safety and well-being of Michigan residents, protect our natural resources, and advocate for Michigan's farm community.
Due to the $942 million shortfall in the budget for FY 2006-07, the subcommittee's action on the 2007-08 budget has been temporarily delayed in order to first address the immediate deficit. To help address the shortfall, Senate Republicans adopted the Governors Executive Order, which included reductions to the MDA budget. To become effective, the Executive Order must also be adopted by the House of Representatives. As part of the reductions, staffing for the agricultural statistics service would be reduced, and this could affect the completion of the equine industry survey. Please keep in mind that the budget process is fluid and discussions are ongoing.
For the 2007-08 MDA budget, the subcommittee held three hearings on the MDA budget. One of the hearings focused on the equine industry in regard to horse racing and other equine related activities. The agriculture equine industry development fund is facing a decrease in revenue due primarily to the decrease in revenue from the 6 percent wagering tax on casinos. This is because permanent casinos in Detroit are expected to become operational before or during FY 2007-08. When a casino becomes operational, the tax drops to 1 percent with that revenue going to the city where the casino is located. I am working to ensure that the agriculture equine industry development fund receives all the revenue it should as defined in statute as long as the casinos are not operating.
I hope you find this update helpful. Please let me know if I can be of further assistance.
Sincerely,
Cameron S. Brown
State Senate District 16
Location: Northville Downs, Northivlle, Mi. Meeting 5:00 Dinner 6:30 Auction 7:30
Governor Granholm plans big cuts to equine industry -She would like to eliminate the Equine Industry Survey funding; cut 4h grant of $20,000; and more. Speak out. Tell Senator Cameron Brown (St. Joseph County) in upcoming 3/1 hearing. sencbrown@senate.michigan.gov
full story
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There are only 3 facilities in the U.S. for bringing in horses to the U.S. permanently. The USDA publised an updated proposal on De. 13, 2006 to permit permanent, privately owned quarantine facilities. How does this affect Michigan borders?
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The bill known as the "AGjobs Bill." will expedite the process of hiring foreign workers in the horse industry.
This bill was recently re-introduced inCongress by Sen. Dianne Feinstein (Dem) of California and Larry Craig of Idaho (Rep).
“The issue of comprehensive immigration and guest worker reform is very important to all segments of the horse industry,” said Jay Hickey, president of the American Horse Council (AHC). “Horse breeders, ranchers and farms depend on seasonal foreign workers to fill labor demands not met by American workers. This bill would solve a lot of the problems our industry has in employing legal foreign workers.” AHC@horsecouncil.org
Read up on the temporary worker programs
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for more information, see the Horse Farms and Equine Populations in Michigan article by M. Jean Ligon, Chair, Environmental, Legislative, and Land Use Committee, Mi. Horse Council March 2006 http://www.michiganhorsecouncil.com/HORSE%20CENSUS%20DATA%20-%20USDA.pdf
Legislative Locator
This is a visual aid for those of us who like maps. On this map, Michigan is mapped by county. You click on the county and you get a pop-up of the representatives and senators, emails and phone numbers. Want to write about the destruction of riding trails by snowmobiles up in Marquette where you were last summer? Go to this map.
MEP makes it possible
to find a legislator. Visit the map
Legislative Locator
Politics of Horses starts with the Bill
Sometimes you don’t know what’s at stake in the legislature regarding horses in our region. But there’s a way to find out. Go to a site called Michigan Votes (http://www.michiganvotes.org) where every bill that affects horses is described in layman’s terms. Once you get to Michigan Votes, on the home page look for the category “animals” and scroll through this category for bills related to horses and horse farms.
http://www.michiganvotes.org/SearchLegislation.aspx?Category ID=5&op=Search
For example, here are two bills, who introduced them, when and what’s happened. Both of these have been signed into law by Governor Granholm. The first one repeals a law of 1897 that allows a horseshoer to take a horse if a horseowner fails to pay his shoeing bill. The second one re-classifies horse boarding and training facilities so that they pay fewer taxes.
2005 House Bill 4366 (Repeal the horseshoer's lien act )
Public Act 219 of 2006
[History, Amendments & Comments] [Text and Analysis] [Add to Watch List]
- Introduced by Rep. Bill Caul on February 22, 2005, to repeal the horseshoer's lien act of 1897, which allows a blacksmith to place a lien on an animal when its owner does not pay his or her horseshoeing bill.
- Passed in the House (107 to 0) on April 26, 2005. [Vote Details and Comments]
- Received in the Senate on April 27, 2005.
- Passed in the Senate (36 to 0) on June 8, 2006, to repeal the horseshoer's lien act of 1897, which allows a blacksmith to place a lien on an animal when its owner does not pay his or her horseshoeing bill. [Vote Details and Comments]
- Signed by Gov. Jennifer Granholm on June 24, 2006.
2005 House Bill 4072 (Tax break for horse boarding and training facilities )
Public Act 376 of 2006
[History, Amendments & Comments] [Text and Analysis] [Add to Watch List]
- Introduced by Rep. Dave Hildenbrand on January 27, 2005, to classify horse boarding and horse training facilities as agricultural real property, rather than commercial. Agricultural property is exempt from the local 18 mill school operating expense property tax, and is exempt from the Proposal A taxable value "pop-up" upon a transfer of ownership if it will still be used for agriculture.
- Passed in the House (82 to 23) on November 1, 2005. [Vote Details and Comments]
- Received in the Senate on November 2, 2005.
- Passed in the Senate (31 to 6) on June 1, 2006, to classify as agricultural real property, rather than commercial property, horse boarding and horse training facilities, game bird hunting preserves, and farming operations that harvest cervidae (deer, moose, or elk) born as part of the farming operation. Agricultural property is exempt from the local 18 mill school operating expense property tax, and is exempt from the Proposal A taxable value "pop-up" upon a transfer of ownership if it will still be used for agriculture. [Vote Details and Comments]
- Received in the House on June 6, 2006.
- Passed in the House (80 to 23) on August 30, 2006, to concur with the Senate-passed version of the bill, which expands the agricultural tax status to also include game bird hunting preserves, and farming operations that harvest cervidae (deer, moose, or elk) born as part of the farming operation. [Vote Details and Comments]
- Received in the Senate on September 5, 2006.
- Passed in the Senate (29 to 8) on September 7, 2006. [Vote Details and Comments]
- Signed by Gov. Jennifer Granholm on September 22, 2006.
All photographs, illustrations, text and design on this site are the exclusive property of Tania G. Evans. Duplication or usage of content on this site is prohibited by U.S. and International Copyright Law. Usage is denied without express written permission of Tania G.Evans. © 2007Tania G Evans. All Rights Reserved.