California Help & Tax Relief Act

California Help & Tax Relief Act plus Food Forethought. I’m Greg Martin with today’s Northwest Report.

California’s farmland has been suffering from a severe drought but now it appears that drought-stricken central California farmers may find some consolation in an announcement by Governor Arnold Schwarzenegger.

SCHWARZENEGGAR: My administration has been working very hard with Secretary Salazar and with the federal government to do everything we can to get more water flowing to our businesses, to our residents and to our farmers.

Members of the House Ways and Means Committee last week introduced H.R. 3905, the Estate Tax Relief Act of 2009. The bill would phase in a 5-million dollar exemption, with a 35-percent tax rate, over 10 years. The current estate tax exemption is 3.5 million dollars per person with a tax rate of 45 percent. Farm Bureau says this bill - brings us one step closer to its goal of permanent repeal and a continuation of a “stepped-up basis,” which adjusts the value of property for inflation at death. According to American Farm Bureau Federation President Bob Stallman, 80 percent of farm and ranch assets are land based. When estate taxes exceed cash and other liquid assets on hand, surviving family members can be forced to sell land, buildings or equipment needed to keep their businesses operating. Sadly, Stallman points out, - it takes two and a half years of farm returns for a moderate-sized farm operation to pay off the estate tax owed.

Now with today’s Food Forethought, here’s Lacy Gray.

The confusion over “all natural” products and “organic” products continues to rage on. The most recent battle over the blurry line between organic and all natural is between Cornucopia Institute, an organic watchdog group, and Target. CI has filed a complaint with the USDA against the red and white bull’s-eye block store over misleading advertising for Silk Soymilk. Strangely there isn’t a legal definition of what constitutes a “natural” food. The Food and Drug Administration holds policy that foods labeled natural cannot include added color, flavors, or any synthetic substance. Food producers use the term natural loosely, meaning for all intense and purposes preservative free with a minimal amount of processing. Natural foods can include organic, but not all “natural” foods are organic. Totally confused yet? Don’t feel bad, so are the majority of American consumers. Just remember, “organic” is a food certification system overseen by the USDA; “natural” is a labeling claim that for the most part is not overseen by any one government agency.

Thanks Lacy. That’s today’s Northwest Report. I’m Greg Martin on the Northwest Ag Information Network.