The American Horse Council is continuing its effort to collect information on access issues equestrians are experiencing on federal lands. The center piece of this effort is an online form equestrians can use to report their personal experiences regarding trails that have been closed to them or other access issues on federal land. This online form is located at https://www.horsecouncil.org/survey.php.

Shortly, the AHC will be publishing a 2010 Report on Equestrian Access on Federal Land. It is vital that all equestrians report their experiences on federal land good and bad. Equestrians need to relay their 2010 experiences to the AHC by the end of the year so they can be included in the 2010 report. This information is vital to AHC efforts to protect equestrian recreation on federal land.

Last February, the American Horse Council released its first Report on Equestrian Access on Federal Land. The 2009 report provided a brief overview of the responses the AHC received from equestrians to its ongoing access survey in 2009.  The report can be viewed and downloaded on the Recreation Issues page on the AHC website or by clicking here.

The American Horse Council began its effort to collect information regarding equestrian access issues on federal lands in July of 2009.   This effort was prompted by a growing concern among recreational riders around the country that they were seeing a reduction in the number of trails and trail heads open to equestrians on federal land.

Hundreds of thousands of Americans use horses and pack stock to enjoy America’s great outdoors each year.  However, it is an experience that cannot be enjoyed without access to public land, trail systems, and trailheads.

The AHC uses the survey and the year end report to illustrate some of the challenges facing recreational riders. Our federal land mangers work hard to provide recreational opportunities and we need to make sure they have adequate information about what some equestrians are experiencing.   The annual Report on Equestrian Access on Federal Land is just one part of our efforts to ensure equestrians continue to have recreational opportunities on federal land.

The AHC asks all recreational riders now and in the future to visit the AHC website and report any access issues they have had using this electronic form. https://www.horsecouncil.org/survey.php

The Future is in Your Hands, Take the Reins!

Congress has passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. President Obama signed the $858 billion package into law almost immediately. The Senate passed the bill on December 15 on a vote of 81 to 19. The House followed on December 16, 277 to 148, with 112 Democrats and 36 Republicans voting no.

Passage of the legislation avoids tax increases, scheduled to go into effect automatically on January 1, 2011, on everyone’s individual income, capital gains, and dividend income and on estates. The bill also includes other tax benefits for the horse industry supported by the American Horse Council.

After a bit of brinksmanship over extending the Bush-era tax cuts following the November elections, President Obama and Republican leadership sat down and hammered out the legislation. There was some opposition in the House to extending the cuts for those making more than $250,000 a year and exempting estates valued at up to $5 million from the estate tax, but it was not strong enough to allow a tax increase on all Americans to go into effect on January 1.

Tax Rates

Under the legislation, individual income tax rates will remain at current levels for two more years, through 2012. The marginal rates will stay at 10% to 35% depending on one’s income bracket. The rate structure is indexed for inflation. Had the bill not been passed and the current rates allowed to lapse, tax rates would have risen about 4% for each bracket.

The tax rate on capital gains will remain at 15% for another two years, rather than rising to 20%.

The tax rate on dividends will remain at 15% for another two years, rather than being taxed at the same rate as a taxpayer’s ordinary income, which could be as high as 35%.

Payroll taxes for all workers will be reduced 2% from 6.2% to 4.2% for 2011 on wages up to $106,800. This will put up to $2,136 extra in the pocket of every U.S. worker.

Estate Tax Rate and Exemption

Effective January 1, 2011, the top estate tax rate will be 35% with an exemption of $5 million for individuals and $10 million for married couples through 2012. This means that only estates valued at over $5 million ($10 million for married couples) will be subject to the tax.

Expensing Allowance Increased to 100%

Under current law, anyone who purchases a horse or other property for his horse business and places it in service in 2010 can deduct up to $500,000 of the cost. This applies to horses, farm equipment and other depreciable property used in a business. This limit will be eliminated for 2011 allowing horse owners and other horse businesses to write off the entire cost of most capital assets when purchased and placed in service. This provision is retroactive and will benefit any business involved in the horse industry that purchases and places depreciable property in service after September 8, 2010 and through 2011.

Contribution of Property for Conservation Purposes

Owners of horse farms and ranches are interested in the tax benefits available to those who contribute property for conservation purposes. Conservation easements are one way that owners can keep their property available for farming, rather than selling it for commercial purposes, while getting a tax benefit. Under legislation passed a number of years ago, a landowner with 50% of more of his/her income from agriculture could get a deduction for the contribution of a conservation easement up to his/her full income, with any unused amount carried forward for 15 years. This provision had expired and the deduction was limited to 30% of income.

The tax bill reinstated the conservation easement benefit for two years, through 2012, for contributions made in taxable years after December 31, 2009.

Terry Johnson, Region 17 Arabian Horse Association Director from Surrey, BC, Canada, has been named to the Arabian Horse Foundation Board of Directors. The Foundation is the philanthropic arm of AHA and funds youth scholarships, equine rescue and rehoming, and equine research. Since the Foundation was re-launched in 2007, the charitable agency has given out over $75,000 in grant money.

A member of the Arabian Horse Association since the mid 1970’s, Johnson has been a professional horse trainer since 1978, focusing on amateurs at various levels of competition. Since 1986, she has been an AHA recognized judge and has judged national and international competitions. She has been Region 17 Director since 2008 and chairs the AHA Competitions and Advisory Committee.

“I am excited to become a part of the Foundation,” Johnson says. “The fact that the Foundation has had such an impact on equine rescue and on equine research, particularly in the areas of Lavender Foal Syndrome and Cerebellar  Abiotrophy, sends a strong message that the Foundation board members spend funds wisely. While directing funds to new areas of need, the board remains committed to providing scholarships to young people.”

Johnson is the first Canadian to serve on the board. Other board members are Jim Cada, Nancy Harvey, Lollie Ames, Frank Galovic and Larry Kinneer. The Foundation is a 501(c)(3) entity which means that donations are tax deductible.  For more information about the Foundation, visit the web site at www.arabianhorsefoundation.org.

AHA is a major equine association serving 33,000 members across North America. It registers and maintains a database of more than one million Arabian, Half-Arabian and Anglo-Arabian horses and administers approximately $3 million in annual prize money. AHA produces championship events, recognizes close to 600 Arabian horse shows and distance rides and provides activities and programs that promote breeding and ownership. For information about Arabian, Half-Arabian and Anglo-Arabian horses, call 303-696-4500, e-mail info@ArabianHorses.org or visit ArabianHorses.org

House Announces Committee Chairs
Last week The House Republican Caucus announced who will chair committees in the 112th Congress that will begin in January.  Committee chairmen have a great deal of influence on the bills their committees have jurisdiction over. Committee chairmen largely determine what bills committees bring up for consideration and are sent to the full House.  For the next two years these chairmen will have great power over any bill that impacts the horse industry.

One of the most powerful Committees is Appropriations which has jurisdiction over all spending bills in the House.  Representative Hal Rogers (R-Ky.) beat out several other contenders the post.  Rogers won of the Rolapp Award in 2001 for outstanding service to the horse industry.

In other highly contested campaigns for the gavels of important committees   Representative Fred Upton (R-Mich.) will take over the Energy and Commerce Committee, and Representative Spencer Bachus (R-Ala.) will be chair of the Financial Services Committee.

Representative Frank Lucas (R-OK) will chair the Agriculture Committee.  This committee will have responsibility for drafting the next mulit-year farm bill that will be very import to the horse industry.

A listing of all new committee chairs is below.

Agriculture: Frank Lucas (OK)
Appropriations: Hal Rogers (KY)
Armed Services: Buck McKeon (CA)
Budget: Paul Ryan (WI)
Education and Labor: John Kline (MN)
Energy and Commerce: Fred Upton (MI)
Financial Services: Spencer Bachus (AL)
Foreign Affairs: Ileana Ros-Lehtinen (FL)
Homeland Security: Peter King (NY)
Judiciary: Lamar Smith (TX)
Natural Resources: Doc Hastings (WA)
Oversight and Government Reform: Darrell Issa (CA)
Science and Technology: Ralph Hall (TX)
Small Business: Sam Graves (MO)
Transportation and Infrastructure: John Mica (FL)
Veterans: Jeff Miller (FL)
Ways and Means: Dave Camp (MI)

If you have any questions please call the AHC.

OKLAHOMA CITY ‐ Horses considered as gypsy cob, gypsy vanner and other similar types are now eligible for registration with the Pinto Horse Association of America.

Relaxing the rules on draft characteristics, the PtHA is offering a new classification of equines. According to the new rules, horses showing feathers on their legs are now acceptable as long as they are registered with an approved outcross breed association as determined by the PtHA Rule Book and meet the standard color requirements for horses.   

These horses will be classified as “utility” and will show only with other utility horses and not other types of Pintos. Classes for these flashy equines will be available in all of the PtHA established disciplines for horses, including, English and western riding, color, halter and driving.

Approved outcross breeds include Gypsy Cob and Drum Horse Association, Gypsy Horse Association, Gypsy Horse Registry of America, Inc., Gypsy Vanner Horse Society, The Gypsy Cob Society (Ireland) and The Gypsy Cob Society (United Kingdom). Other associations and registries will be evaluated on an individual basis.

For more detailed rules, see the registration section of the 2011 Pinto Horse Association Rule Book at www.pinto.org/rulebook or contact the PtHA Registration Department at registration@pinto.org or 405.491.0111 ext. 214.

Incorporated in 1956, the Pinto Horse Association of America was formed to encourage the promotion of quality horses, ponies and miniatures with color and to establish a registry for maintaining their pedigrees and records. Currently, the association serves aregistered Pintos.

The Arabian Horse Association (AHA) is proud to name Kelsey Kimbler of Aberdeen, S.D. the 2010 AHA Youth of the Year. Kimbler was presented with the Youth of the Year perpetual trophy at the 2010 AHA Annual Convention on Nov. 20 in Orlando, Fla. A quote by Randy Pausch is one of Kimbler’s favorites, “The brick walls are not there to keep us out, they are there to give us a chance to show how badly we want something.” And shown us, she has. Kimbler’s achievements and contributions to the Arabian horse industry and her community met, and in some cases, exceeded the expectations of the Youth of the Year sub-committee, boasting an AHYA leadership position, record-breaking endurance ride finishes, and a 4.136 GPA.

Kimbler’s involvement with Arabians and Half-Arabians began 11 years ago when her older sister Kirsten (the 2007 AHA Youth of the Year) received her first Arabian horse. Shortly after, Kelsey experienced her dream-come-true with a four-legged Christmas present named Kota—big red bow and all—and began showing at local Region 6 Arabian shows. Kimbler’s volunteer AHYA experience began early, attending Youth Nationals and participating in the Parade of Regions, the Stick Horse Contest and representing Region 6 as a voting delegate at the AHYA Convention. Kimbler has been a member of several winning Youth Team Tournament teams and attended U.S. Nationals as a member of a judging team in 2005.

Serving as AHYA Region 6 Director for 2010, Kimbler also serves as an ambassador for the Arabian breed through her involvement in events outside the breed specific boundaries. Kimbler competes with her Arabians in 4-H and most visibly while pursuing her true passion—endurance. In 2006 and 2007 Kimbler was the recipient of the American Endurance Ride Conference (AERC) Junior National Hundred Mile Award, given to the junior who completes the most 100-mile races in a year. In 2007 Kimbler attempted seven 100-mile races, completing five and winning one, making her the only junior rider to have five 100-mile rides in one year. Kimbler has finished the world-renowned Tevis Cup twice. “I have ridden many miles alongside Kelsey…she has ridden through some very rugged trails under the most unpleasant conditions and never complained or wanted to give up,” says Myna Cryderman, President of the Distance Riders of Manitoba. Kimbler was also the nominee selected by the Endurance Association for the United States Equestrian Federation (USEF) Youth Sportsman’s Award in 2009.

As a senior at Aberdeen Central High School, Kimbler “bleeds blue and gold.” Kimbler keeps busy with Students Against Destructive Decisions (SADD), is a member of the cross-country team, which helped her prepare for her first marathon, and is a member of the Keystone National Honor Society. As a member of this society, Kimbler will complete over 30 hours of community service and maintain a GPA above a 4.0, taking honors, advanced placement, and college courses.

Off the trail and outside the classroom Kimbler still manages to find time to pursue other interests. Kimbler will test as a professional dancer later this winter and hopes to help cover college costs by teaching dance while she’s in school. Kimbler has served as Junior Miss Aberdeen and ran against 20 talented speakers for Keynote Speaker and won in a mock government exercise, giving her several opportunities to perfect speaking to an audience of over 400 peers.

As Youth of the Year, Kimbler will represent AHA during 2011 and is automatically nominated for the 2010 USEF Sportsman’s Award. Kimbler will also receive a $1,000 scholarship from the Upper Snake River Valley Arabian Horse Club of Southeastern Idaho. “What can we say? We are just so proud of Kelsey,” said AHA Region 6 Director, Cecile Dunn. “We’re so happy her achievements have been recognized and know she is an excellent representation of youth involved with Arabians.”

AHA is a major equine association serving 33,000 members across North America. It registers and maintains a database of more than one million Arabian, Half-Arabian and Anglo-Arabian horses and administers approximately $3 million in annual prize money. AHA produces championship events, recognizes close to 600 Arabian horse shows and distance rides and provides activities and programs that promote breeding and ownership. For information about Arabian, Half-Arabian and Anglo-Arabian horses, call 303-696-4500, e-mail info@ArabianHorses.org or visit ArabianHorses.org

1099 Reporting Requirement Amendments Fail

Last night the Senate failed to approve either of two amendments to the FDA Food Safety Modernization Act that would have repealed the 1099 paperwork mandate. The amendments offered by Senator Max Baucus (D-MT) and Senator Mike Johanns (R-NE) both would have repealed the 1099 paperwork mandate. However, the Johanns amendment would have offset the projected cost of repeal with unused stimulus funds.

The 1099 paperwork mandate was a provision of the health care bill passed earlier this year that imposes new tax reporting requirements, on every business in the U.S., including those in the horse industry, beginning in 2012.

In September, Senator Mike Johanns (R-NE) offered a similar amendment that also failed.

The AHC supports repeal of the 1099 reporting requirement.

Background

The Patient Protection and Affordable Care Act (“Health Care Bill”) that was signed into law earlier this year includes a provision broadly-expanding 1099 IRS form reporting requirements. Current law requires 1099s to be sent to any independent contractor that receives $600 or more from a business in a year. The new requirement expands that mandate to require that all businesses issue 1099 forms to any individual or corporation from whom they purchase a total of $600 or more in goods or services in the year. Its stated purpose is to identify unreported taxable income, fraudulent tax deductions, and increase tax compliance.

This new requirement will greatly increase the administrative burden on all businesses, particularly small businesses, including those in the horse industry. For example if a horse farm buys $600 worth of hay and grain from a particular retailer, or purchases buckets and bridles for a total of $600 from a tack shop, or an event buys office supplies of $600 from a supply store over the course of the year, or an individual buys a computer for $700 from a local store, they are required to issue each a 1099 form that must be completed and returned to the IRS. This reporting mandate places an added burden on each business involved. The horse businesses would have to collect information and tax identification numbers for every entity they do $600 worth of business with and mail them forms and the business receiving the forms must complete them.

This new requirement would impose a heavy administrative burden on small and large businesses.

It is expected that Both Senators Baucus and Johanns will continue to look for an opportunity to repeal the 1099 requirement.

The AHC continues to support repeal of the 1099 reporting requirement. www.horsecouncil.org