Farm Employers and the “Pay-or-Play” Mandate

farm health care

The “pay-or-play” mandate is a key element of the Patient Protection and Affordable Care Act, often called “Obamacare”. It is a new law aimed at expanding health care coverage by requiring certain employers to make a choice: pay or play.

The mandate applies to “large employers” only, meaning farms, ranches, vineyards and the like who employed an average of 50 or more full-time employees – or full-time equivalent employees – per month in the calendar year prior, or for new employers who intend to employ that many in the current calendar year. The choice these large employers must make is simple: offer minimum essential coverage to all full-time employees, or pay an excise tax.

Below is some useful information for farmers and ranchers concerning the “pay-or-play” mandate and the health insurance requirements going into effect on January 1, 2014.

The Difference Between Full-Time Employees and Full-Time Equivalent Employees

  • The “full-time equivalent,” or FTE, concept is intended to dissuade employers from replacing full-time employees with additional part-time employees in an effort to side step the “pay-or-play” mandate.
  • A full-time employee is anyone who works at least 30 hours per week, or 130 hours per month. So, the FTE is calculated by adding together all of the hours worked by part-time employees in one month and then dividing that number by 120. This means an employer who has 12 part-time employees working a total of 1,200 hours per month between them (100 hours per month per employee) is considered to have 10 full-time employees, and thus is using 20 percent of the 50 full-time employee total.

The Rules Regarding Seasonal Employees

  • Seasonal employees do not count toward the 50 full-time employee total.
  • Seasonal employees are employees who worked 120 days or fewer in one year.

Time Constraints and Requirements

  • Hiring and firing decisions made in 2013 by applicable large employers may affect the necessary coverage required on January 1, 2014.
  • The IRS allows large employers to use a measurement period of 3 to 12 months of employment history to determine whether or not a certain employee is full-time.
  • Any new employees are subject to an administrative period. This allows applicable large employers up to 90 days to determine whether or not the new employee is eligible for coverage.
  • After January 1, 2014, all eligible employees must be provided coverage.

If a large employer chooses not to provide health insurance coverage to any or all of their full-time employees, fines could total $2,000 or $3,000 for each full-time employee.  However, there are many factors and situational differences that can affect a large employer’s decision to “pay” or to “play”. For example, the first 30 employees are excluded from the total when penalties are calculated, so it may be economically beneficial for a large employer to choose to “pay”. This is because sometimes the health insurance coverage for the year totals more than the fine itself.

If you fall into the large employer category, seek the advice of a tax professional or insurance broker for specific details on your unique situation.

Which Fence Is Right For Your Ranch?

With so many fencing choices out there, how are you supposed to decide which is the right one for your needs? Do you require a fence that prevents livestock from escaping, or are you simply in need of a perimeter fence to mark the boundaries of your property? This article will provide a brief overview of some different fence types, with information ranging from budget to form and function.

3-Rail or 4-Rail Pipe Fence

The benefits of a pipe fence include minimal upkeep, durable construction and reliable stability; however, some folks may consider the expense of a pipe fence to be too high, therefore making it impractical to implement. These steel rail ranch fences are ideal for keeping cattle and other adult livestock safe and secure within the confines of the enclosed space. Commonly, 3-rail and 4-rail pipe fences come in pre-fabricated sections, making installation quick and easy. They often come standard with a protective finish too, such as polyester powder or polyurethane, so there is no need to paint. This makes for an economical and worry-free product, with the power to withstand the elements and the long-lasting stability that you require.

Barbed Wire Fencing SonomaBarbed Wire Fence

Because of its “do-it-yourself” nature, barbed wire is an economical approach to large-scale fencing projects. You need only a few tools and, of course, your choice of wood or metal posts. Be sure to research common techniques and trouble shooting guides before deciding to take on the project yourself; there are many tips and tricks to be learned that will help prevent errors and save you time and money in the long run.

3, 4 or 5-Rail Wood Fence

Wood fences are known to offer the strength and effectiveness considered necessary in a fence, but the biggest downside is routine maintenance. Wood fences must be weather-proofed, painted and updated and replaced regularly, which adds to the cost and the hassle. If you decide to go with a wood rail fence, you can affix welded wire to the wood pieces to keep smaller animals in or out if desired.

Electric Wire Fence

If you need to protect your orchard, vineyard, garden or any other prized landscape, an electric wire fence may be exactly what you’ve been looking for. Most electric fences come standard with both high and low electric wires. This means all animals, large and small, will be prohibited from entering or exiting the property. One disadvantage to electric wire fencing is the amount of upkeep required. The wires often come loose, so routine maintenance is needed to ensure the success of this inexpensive and easy to install product.

Game-Proof Fence

Also known as a high fence or a deer-proof fence, game-proof fencing offers the height necessary to keep in what you need to keep in and keep out what you need to keep out. They often feature galvanized, painted steel and can be installed with automatic gate openers if necessary. Due to their size and scale, these are typically more expensive than many other fence types.

Wire Mesh Fence

Wire mesh is recommended for farmers and ranchers who need to keep horses and cattle of varying sizes contained. The advantage is the small openings in the wire mesh that prevent even small colts from getting their hooves stuck, thus preventing unnecessary injury in farm animals. They are durable, secure and keep livestock from climbing.

Cable Fence

Cable fencing offers the durability and strength of pipe fencing with the added bonus of saving a little money. Some of the benefits of cable fencing include easy installation, aesthetic appeal and minimal upkeep. So, consider the cost effective, safe, strong and secure cable fencing for those smaller fencing jobs.

Hopefully, the information presented above helped shed some light on different fencing types, including the advantages, disadvantages and overall practicality of the most common varieties. Once you decide on the proper fence type for your specific land requirements, you’ll need to consider the amount of site preparation needed before getting started with the installation.

12th Annual Sustainable Winegrowing Field

Napa VineyardThe 12th Annual Sustainable Winegrowing Field Day will be held Thursday, August 9, 2012, at Santa Rosa Junior College’s Shone Farm in Forestville. The event begins at 7:30 a.m. and is co-sponsored by the Sonoma County Winegrape Commission, Santa Rosa Junior College Agriculture and Natural Resources Department and the California Sustainable Winegrowing Alliance. There is no cost to attend and the event is open to the public, although pre-registration is required.

According to the Sonoma County Winegrape Commission’s website, the agenda includes:

  • Carbon Sequestration by Vineyards by Dr. David Smart, UC Davis
  • Scientifically Addressing Spray Coverage by Dr. Franz Niederholzer, UC Cooperative Extension
  • PD-Resistant Grapevines and Winemaking Quality by Dr. Andy Walker, UC Davis
  • SARE Grant, Water Management, Conservation and Irrigation Initiative by Dr. Mark Greenspan, Advanced Viticulture
  • Integrated Pest Management Season Highlights by Laura Breyer
  • Presentations by Allison Jordan and Lisa Francioni of California Sustainable Winegrowing Alliance on CSWA’s carbon projects
  • A performance metrics program
  • Small Grower Certification Pilot Program

The Sonoma County Winegrape Commission represents 1,800 vineyard owners. The group advocates sustainable vineyard and winegrowing practices through monthly meetings and educational outreach programs, and their website features a plethora of resources to promote and assist with first-rate vineyard procedures. Highlights of their respective actions include informative environmental and organic news, a video featuring the life of a grape, a live online vineyard cam and much more. The SCWC also hosts a 3-day Sonoma County Grape Camp in which participants can pick grapes and blend their own wine, all while learning the intricacies of food and wine pairing and vineyard techniques. Visit their website here: http://www.sonomawinegrape.org/

Santa Rosa Junior College Agriculture and Natural Resources Department, another event sponsor, enrolls more than 2,000 students annually, making them the largest community college agriculture program in California. Shone Farm, their outdoor educational laboratory and the location for the 12th Annual Sustainable Winegrowing Field Day, is a 365 acre property featuring work spaces for students pursuing viticulture, wine studies, equine studies, animal science, sustainable agriculture and environmental education. Click here to visit SRJC’s Agriculture and Natural Resources website: http://www.santarosa.edu/instruction/instructional_departments/agriculture/

Finally, the California Sustainable Winegrowing Alliance offers workshops to help establish the highest standards of sustainable practices through education, as well as community outreach efforts directed at enhancing mutual respect between winegrowers and vintners. Their California Sustainable Winegrowing Certification program is intended to “enhance transparency, encourage statewide participation and advance the entire California wine industry toward best practices in environmental stewardship, conservation of natural resources and socially equitable business practices.” Visit the CSWA website here: http://www.sustainablewinegrowing.org/

This yearly event is sure to be a special occasion, and anyone from grape growers to wineries to hobbyists and enthusiasts will undoubtedly walk away with plenty of new and exciting information.

Don’t wait! Participants are asked to register by August 3 at www.sonomawinegrape.org/fieldday. Registration check-in begins at 7:30 a.m. on August 9, and the presentations will run from 7:55 a.m. to 12:30 p.m.

For more information, call Karen at 707-522-5862 or by e-mail to ipm@sonomawinegrape.org.