NEWS & VIEWS continued from page 10


the quality, innovation and expertise they expect of us.” Quoted in the same release is President and CEO of Southern States Cooperative, Jeff Stroburg: “We are pleased with the opportunities this partnership with a fellow cooperative brings to Southern States. Our [Southern States] members will continue to receive the same level of service from our retail locations while benefi ting from Land O’Lakes’ feed business, Purina Animal Nutrition and their knowledge and experience in manufacturing the quality feed our customers expect.” Land O’Lakes, Inc., a major international


agribusiness and food corporation, is a member- owned cooperative, with 2015 annual sales of $13 billion, making it one of the nation’s largest cooperatives (ranked 215 on the Fortune 500). Brands include LAND O LAKES® Dairy Foods, Purina Animal Nutrition and WinField® United. Established in 1923, Southern States is


a Virginia-based farm supply and service cooperative, and is now one of the largest ag cooperatives in the U.S. with more than 200,000 farmer members in the south and mid-Atlantic area and 1,200 retail locations in 23 states. Products and services include fertilizer, seed, livestock feed, pet food, animal health supplies and petroleum products, as well as other items for the farm and home. T e purchase is expected to be completed in


January 2017.


Estate Tax Changes - by Sarah Everhart for aglaw.umd.edu Is your farm business organized as a family- owned business entity such as a corporation, limited partnership, or LLC? If so, you need to be aware of the proposed change in U.S. treasury regulations to Section 2704 of the IRS Code, which could become fi nal by the end of 2016. If fi nalized, the regulations will signifi cantly reduce the availability of valuation discounting on certain intrafamily transfers of interests in family-owned entities. T e regulations will also aff ect anyone holding a purchase option that calls for the purchase or sale price to be determined using valuation discounts. Many farm families establish business entities to lessen estate tax burdens and to help with transitional planning. After the business entity is created, interest in the entity is often gifted to family members, allowing the majority owner to reduce his or her taxable assets. It also serves as an eff ective way to slowly transition ownership of an operation to the next generation. Currently, it is common to apply a discount to interests of a family-owned entity. In other words, interest in the family entity can be gifted at less than fair market value. T is is benefi cial because a person is limited by the federal estate tax exemption (currently $5.45 million per person, increasing to $5.49 million in 2017) in


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the total amount he or she can gift during their life before triggering estate tax consequences. T is type of gifted interest can be discounted because of its relative lack of marketability and/ or the lack of control in the entity it bestows. Under the proposed regulations, these types of discounts would be largely eliminated for intrafamily transfers. T e U.S. Treasury Department requested comments from the public on the proposed regulations until November 2, 2016. T ousands of organizations and 41 Senate Republications wrote to Treasury Secretary Jacob Lew opposing the proposed regulations.


In their letter, the


Senators expressed concern about the negative eff ect the regulations will have on family farms. While a public hearing is scheduled for December 1, 2016, the regulations could be fi nal in early December. If your family has this type of corporate


structure and makes intrafamily transfers, you should call your attorney and/or tax adviser and discuss whether to utilize valuation discounts in your transitional planning before the law is changed.


Maryland Flat Track Days Increased


T e Maryland racing calendar will expand to 162 days of racing at Laurel Park and Pimlico Race Course in 2017, up from 154 days this year, the Maryland Jockey Club announced. State racing offi cials called the calendar a


promising marker for the health of Maryland racing, given that many tracks around the country are cutting dates. “It is an improvement,” Maryland Racing Commission chairman John McDaniel said. “T is is what we want, to continue to increase racing days.”


Maryland Million Stats Up


T e 31st annual Jim McKay Maryland Million on October 22 saw an increase in both the total handle and attendance this year over 2015. T e total handle went up by 18.5% to $4.476 million, compared to $3.778 million in 2015. Attendance this year was at 21,722, which is an increase of 7.4%. “It was an incredible day full of exciting racing and memorable events,” said Maryland Jockey Club president and general manager Sal Sinatra.


HD CT Arrives at Leesburg Hospital T e newest edition to the diagnostic


technology at the Marion duPont Scott Equine Medical Center in Leesburg, VA is the Pegaso High-Defi nition Computed Tomography (CT) scanner, the fi rst of its kind on the East Coast. T is new CT machine allows horses to be standing or recumbent while being scanned.


New Level for Eventers


With the start of the new eventing calendar on December 1 comes a new modifi ed


level between the traditional Training and Preliminary levels, created as a stepping stone between Training and Preliminary and dubbed “Modifi ed” level. T e U.S. Eventing Association Board of Governors approved the new level in October. As of press time, only two facilities in the U.S. have stated they will off er Modifi ed levels in 2017: the Heart of Carolinas (NC) and Coconino (AZ). T e new level is open to horses who are four


years old or older. Riders must have achieved two National Qualifying Results (NQRs) at the Training level in order to compete at the Modifi ed level. T e cross-country and show jumping courses will have fences set at no more than 3’5’’ (Training level is a maximum of 3’3’’ and Preliminary is 3’6’’). Cross-country courses must be designed


by an “r” certifi ed course designer and may include angled lines, corners, varied terrain and combinations with water or narrow fences. In show jumping, two doubles or one double and one triple combination are required. T e dressage test, which is held in a small arena, will include leg yields, medium gaits and changes of lead through the trot. What do you think of this new level? Email thoughts to editor@equiery.com.


New Stallion Comes to Maryland T e T oroughbred stallion Norumbega


has arrived at Bonita Farm in Darlington to stand at stud. A six-year-old son of Tiznow, Norumbega was bred by Jockey Club chairman Stuart Janney III and won the 2014 Brooklyn Handicap G2. He won or placed in eight of 19 starts, earning $521,645 in his career. Norumbega’s dam is Meghan’s Joy, a stakes- placed daughter of A.P. Indy.


Time To Ride


T e third annual nationwide Time to Ride Challenge awarded $100,000 in cash and prizes to stables, clubs and businesses that introduced new people to horses. A total of 38 hosts earned cash prizes. T is year’s Challenge ran from June 1 through September 30 and saw a record number of 1,004 events. A total of 28,175 newcomers were introduced to horses. Rolling Hills Ranch in Port Deposit placed second in the Medium Division of the national Time To Ride Challenge, winning $5,000 in prize money. Oak Crest Farm in Harwood was in third place in the Large Division, earning $2,500 in prize money. Rolling Hills introduced 2,170 people to horses; Oak Crest introduced 1,482.


November Correction On page 51 of the November Equiery, Eileen


Pritchard Bryan should have been listed as the Chief FEI Steward at the Plantation Field International.


DECEMBER 2016 | THE EQUIERY | 75


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