Cranberries - The National Cranberry Magazine, 2003-06

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ranberriesSince 1936June 2003 Vol. 67 No. 5Our 67th year.
COMMODITY CHECKOFFS4 Generic Promotion Programs Face FirstAmendment ChallengesA tidal wave of legal challenges bring mandatory producerfunded generic promotion programs under scrutiny.
BUSINESS PLANNING8 Risk ManagementConsider this part of your business planning process.
BRITISH COLUMBIAII Kudos for "The Cranberry Lady"
A cranberry farm reaps top provincial honor.
RESEARCH12 Fruit Rot Fungicide Studies in Massachusetts, 2002by Frank L. CarusoTAXES16 Saving Taxes on Cost Share PaymentsThanks to a recent ruling, some government payments areeligible for special treatment under the IRS code.
WISCONSIN19 Museum Names DirectorGrowers approve a unique educational and promotionalfacility.
BOOKS20 A Berry Challenging LifeCover:Jim Coogon holds in his hand, Clarence the Cranberry Who Couldn'tBounce. (See story on page 20.)
Cranberries June 2003 Page 3

Generic PromotionPrograms Face FirstAmendment Challenges"got milk?"
You know, that ubiquitous milk moustache painted on nearly every ce-
lebrity in the media? "Behold the Power of Cheese ... " Recognize that?
How about: "Beef. It's what's for Dinner", those commercials narrated bySam Sheppard set to the soundtrack of Aaron Copeland's "Rodeo"?
You probably recognize these ad campaigns. What they all have in com-
mon is that they are mandatory producer funded generic advertising pro-
grams, and they are highly successful, with some programs reaching 90%
consumer recognition. (See the Got Milk? And Cinderella of the Food WorldSidebars.)
Unfortunately, the other thing these programs have in common is thatthey are all in danger of extinction. Recent legal challenges have been filedagainst many of these programs by the very producers these programs wereintended to benefit, who contend that checkoff funded promotion programsviolate the First Amendment to the Constitution.
Authorized by Congress, run by agricultural producers, and overseen bythe U.S. Department of Agriculture (USDA), more than a dozen checkoffprograms for various agricultural commodities are funded through manda-
tory assessments on farmers and ranchers based on a portion of their sales.
The beef checkoff, for example, raises more than $80 million annually frombeef producers who are assessed $1 per head of cattle sold. In fact, the 12largest commodity promotion boards collect nearly $700 million per year inassessments for these generic collective advertising programs.
Watershed caseThe tidal wave of legal challenges was unleashed in 2001 in the case ofUnited States v. United Foods, Inc., where the Supreme Court held that thefederal statute requiring mushroom growers to pay for generic mushroomadvertisements violated the First Amendment by compelling speech by pro-
ducers who disagreed with the program.
The opinion, penned by Justice Anthony Kennedy, stated that "FirstAmendment values are at serious risk if the government can compel a par-
ticular citizen, or a discrete group of citizens, to pay special subsidies forspeech on the side that it favors. ...Just as the First Amendment may pre-
vent the government from prohibiting speech, the First Amendment mayprevent the government from... compelling certain individuals to pay subsi-
dies for speech to which they object."
In the wake of the United Case, lawsuits are now in progress against thebeef, table grape, and dairy, which are materially indistinguishable from themushroom program.
Page 4 June 2003 Cranberries

DefenseIn defense of these programs, the government now places its strongestemphasis on the novel argument that checkoffs may be constitutional if con-
strued as an extension of the government's own speech. The future of com-
modity checkoff programs may now hinge on whether the speech fundedthrough the programs is, in fact, government speech.
The outlook for this defense is bleak, however, since the governmentspeech immunity defense for checkoff programs has never been accepted bythe appellate courts. Two cases have already dealt with the issue; the U.S.
Court of Appeals for the Third Circuit held that the Beef Act, establishingthe beef checkoff, is not government speech. Likewise, the U.S. Court ofAppeals for the Ninth Circuit held that the almond checkoff program is notgovernment speech.
Washington Apple CommissionThe most recent case to succumb to the First Amendment axe is theWashington Apple Commission's (WAC) checkoff.
The March 31 ruling by U.S. District Judge Edward Shea in Richlandcalls into question the future of the 66-year-old WAC. Welcome Sauer, presi-
dent of the commission, said "I think this is a very sad day for the Washing-
ton apple industry."
The checkoff for the Washington Apple Commission, one of the nation'soldest and largest commodity commissions, was 25 cents per 42-pound boxof apples for the 2002-2003 season. With the state's 86-million-box crop,
that's $21.5 million in assessments, or about 90 percent of the commission'sannual budget.
Ironically, the Wenatchee-based WAC initiated the lawsuit against itselfin 2001, hoping for an affirmation of its right to collect the mandatory as-
sessments. The case, filed in the commission's hometown Superior Court inChelan County started small, with a hand-picked pair of Washington applegrowers as defendants. The commission had agreed to pay their legal bills.
But in the year and a half since the suit was filed, the case took on a lifeof its own and moved to federal court, revealing a number of divisions withinthe industry. A group of organic apple growers and a warehouse triumviratewere allowed to intervene with class action claims.
Since the ruling the WAC agreed to a settlement that may allow thecommission to operate on a greatly pared down budget with a four-cents-per-
box mandatory assessment that would generate about $3.5 million for thecommission this crop year. According to a release from the commission, theassessment would be used for funding industry organizations, foreign tradeactivities, filing for Market Access Program funds, and research and educa-
tion funds. Advertising activities would be restricted.
Judge Shea ordered the parties to meet to discuss refunds and damages.
It could take months to resolve the settlement as the different parties of theclass action suit negotiate the particulars. The defendants are seeking closeto $50 million in refunds, and Brian Leighton, a Clovis, Calif., lawyer whorepresented organic apple growers in the class-action lawsuit, said he believesthe state could be forced to pay them.
Cranberry Industry:
Industry leaders are now examining what effect these recent court caseswill have on programs in the cranberry industry. David Farrimond, Cran-
berry Marketing Committee general manager believes that the CMC's ge-
neric promotion should escape any challenge because it has a regulatoryprovision under the Federal Marketing Order.
(Continued on page 22.)
Cranberries June 2003 Page 5

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BUSNES PANINRisk ManagementWhat's your plan when the *@$& hits the fan?
R ISK MANAGEMENT is a popularbuzz phrase in business thesedays. In fact, many largecompanies have entire departmentsdevoted toward dealing with risk.
Planning for adversity, is not entirely thedomain of large companies. Everybusiness, regardless of size should have itsown integrated risk management plan.
This is especially true for agriculture,
which tends to be one of the more high-
risk business ventures.
Integrated Risk ManagementPlanningRisk management is the process oflimiting, and developing contingencyplans for, negative events. Many farmbusinesses deal with risk indirectly bypurchasing some insurance and hopingfor the best. While insurance andoptimism are important tools, effectiverisk management planning goes muchfarther: It should consider the business asa whole and be integrated with thebusiness's overall planning process.
There is no "one size fits all" when itcomes to risk management plans. Severalkey decision-making criteria play into therisk management planning process,
including the owner's goals and riskattitude, and the risk bearing ability ofthe farm.
Integrated risk management planninginvolves three steps:
* Identifying areas of risk exposureand taking steps to lessen the chancesthat unfavorable events may occur.
Page 8 June 2003 Cranberries* Developing contingency plansahead of time to reduce the negativeimpact of unfavorable events.
* Periodically reviewing and revisingthe plan to adjust to an ever changingbusiness environment.
Professional helpA key to developing a useful riskmanagement plan is assembling a team ofexperts to address specific areas ofplanning. This team may includeconsultants, insurance agents, attorneysand accountants. Also consider hiring aconsultant to function as the generalcontractor to help identify risk areas,
develop mitigation and avoidancestrategies, and bring in appropriateexperts to address specific parts of theplan.
Agricultural risksMany experts divide risk areas inagriculture into five primary risk areas.
These include:
* Production. The variability ofyields from factors such as weather, pestpressures, etc.
* Marketing. Risks in the market-
place include price fluctuations, loss ofmarkets, and the financial failure ofbusinesses buying your product.
* Financial. Risk in this area includeloss of assets from a casualty, dramaticincreases in operating costs, interest rates,
or lack of available capital. Adequateliquidity and capital are areas of focuswhen dealing with financial risks.
* Legal. Challenges can range frombeing sued for just about anything, finedand/or imprisoned for criminal viola-
tions.
* Human resource. HR risks canarise from disputes with and claims ofemployees and the resulting lawsuits, andthe death, disability or departure of theowner/operator of key employees.
Planning considerationsRisk tolerance and financial posi-
tioning. The owner's risk tolerance is thefoundation for the business's riskmanagement planning. How much risk agrower chooses to hold or avoid is animportant basis for the plan.
Another key consideration is thefarm's financial position. Does it haveenough equity, or liquidity to withstandnegative changes in the business environ-
ment? Good risk management planningwill tailor financial plans to maintainadequate capital and liquidity. Think ofbuilding financial reserves as self-
insurance: A risky business, where theowner chooses to hold a good portion ofrisk should be stronger financially withmuch more liquidity than a business in amore predictable operating environment.
Insurance. Insurance is a riskmanagement tool that basically involvesI

paying someone else to share a portion ofthe risk. Commodity tailored cropinsurance is important for farmers. Besure the proper beneficiaries are desig-
nated, and the riskiest eventualities areinsured against, be it fire, flood, wind,
earthquake, etc. For cranberry growers,
hail risk must be insured against in aseparate policy. Crop insurance programsalso include ways to insure revenues andnot just crop loss. Pollution insurance isalso very important for farms, especiallycranberry growers.
An appropriate amount of liabilityinsurance protects against financial lossfrom lawsuits. For small farm businesses,
life insurance and disability insurance arecritical, since the death or disability ofthe operator could spell the end of thebusiness. For all insurance, having honestand knowledgeable agents is vital.
Production. Besides crop insurance,
production-hedging strategies to lessenthe chance of catastrophic losses from asingle event include longer term planningsuch as crop and varietal diversification,
geographic field separation and the like.
Marketing. Most businesses need acertain minimum price to meet theirfinancial obligations for their productivecapacity. Many agricultural commoditiescan minimize their price risk by hedgingin the futures market. Although cran-
berry growers can not hedge, they canmanage marketing risks in other ways.
For an example of managing marketingrisk, see the sidebar.
Cost of Inputs. Identifying andlocking in major costs for the operationis a way to avoid being hurt by dramaticchanges in price. Consider pre-purchas-
ing fuel and/or fertilizer when prices arefavorable. Also, fixing all or a portion ofthe interest rates on loans could befinancially beneficial.
Legal risks: The business's choice ofoperating entity (sole proprietorship, cor-
poration, partnership or LLC) effects law-
suit risks, but is not the only consideration.
Distribution of asset ownership among le-
gal entities is also an important way to limitliability exposures.
Human resource risks. Having jobdescriptions and employee handbookscan limit exposure to suits by employees.
Another key area is succession planning.
If a key member of the business dies orleaves, can the business survive?
Final wordsToday's successful growers arebusiness managers first, and producerssecond. Success in the risk-laden world ofagricultural production will be deter-
mined mainly by the ability to anticipateand prepare for the future. To accom-
plish this, a farm's risk management planshould be integrated with the goals andstrategic plans of the business, andshould be periodically reviewed andupdated to meet changing conditions.
On-line resourcesAgricultural Risk Management atCornell University:
http://agrisk.cornell.edu/
This user-friendly web site is a portal to acollaborative effort between CornellUniversity, New York State Departmentof Ag and Markets, and USDA's RiskManagement Agency.
USDA Risk Management Agency:
http://www.rma.usda.gov/
National Ag Risk Education Library:
www.agrisk.umn.edu/
USDA Fruits and VegetablePrograms, PACA Branch:
www.ams.usda.gov/fv/paca.htmPACA law, as amended throughDecember 31, 2000:
www.senate.gov/~agriculture/Legislation/
Agricultural%20Law/AgMisc/Paca30.pdfWrCranberries /une 2003 Page 9

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www.cranbarrier.comKudos for"The Cranberry Lady"
Stan Hagen, B. C. Minister ofAgriculture, Food & Fisheries,
and Minister of Sustainable Resource Development handedover the "Golden Rooster"award to 'The Cranberry Lady".
Lorraine Tilson's farm was recognized by agriculturalindustry leaders as the province's top working farm.
Abbotsford, B.C. -"The Cranberry Lady", Lorraine Tilson,
was saluted for her "showcase farm" at sold-out awards gala inFebruary as part of the Pacific Agriculture Show in Abbotsford,
BC. Her 110 acre cranberry farm won a provincial competitionfor the "best showcase farm".
The award pays tribute to a working farm that is not regularlyopen to the public but uses other means to spread the word aboutthe innovation, technology, culture, lifestyle and business of farm-
ing. Tilson, or "The Cranberry Lady" to her customers, is thesole owner of a cranberry farm that serves juice and puree proces-
sors, pharmaceutical companies, the baking and retail industryin Canada, the U.S. and Japan. She stays connected to the publicwith updates on her farm, tours, practices and products. Spon-
soring the event were the Pacific Agriculture Show and RamadaInn & Conference Centre, Sun-Rype, Farm Credit Canada, Agri-
Digest and Country Life in BC.
Cranberries June 2003 Page I I

Fruit Rot Fungicide Studies inMassachusetts, 2002by Frank L. CarusoCranberry Experiment StationUniversity of Massachusetts, East WarehamThe following studies will be discussed: (1) Screen of new andpresently registered fungicides; (2) Long-term fungicide applica-
tions possibly leading to resistance: and (3) Timing of fungal in-
fection based on fungicide timing. The data and their conclu-
sions are most appropriate for Massachusetts and New Jersey wherefruit rot is an annual problem for most growers, and where thefungal pathogens are very similar. However, the results and con-
clusions may also be useful in other growing areas.
Fungicides that are registered against fruit rot are designatedby their trade names. Unregistered fungicides are referred to as aparticular "Product". AboundTM recently obtained a national la-
bel on cranberries for use against fruit rot, cottonball disease andLophodermium twig blight. However, not all states have approvedthe label as of the writing of this article. Please make certain thatit has been approved by your state before using Abound. No en-
dorsement of any of the registered materials is implied by the dis-
cussion that follows. Anyone needing further information or de-
tails on the trials should contact the author (508-295-2212, ext.
18 or fcaruso@umext.umass.edu).
Screen of new and presently registeredfungicidesThis trial tested the usual three-fungicide application program,
with Bravo WeatherStikTM being the workhorse fungicide in fourtreatments. Bravo was utilized as the first two applications, withBravo as the third application compared with three new fungi-
cides, Abound, Product A and Product B. Product B may be reg-
istered for use against fruit rot in 2004. Plots were established inthe cultivar 'Early Black' in State Bog. Fungicides were appliedon:
June 10 (8% bloom)
June 21 (65% bloom)
July 3 (100% bloom, 18% fruit set)
Berries were harvested from Sept. 12-17, counted and evalu-
ated for the presence of field rot at five days after harvest. Soundberries were sorted and stored at 38°F for eight weeks. Standardcup counts and 100 berries were weighed to determine whetherthe treatments had any effect on berry size or weight. Storage rotwas evaluated at eight weeks by separating out rotted berries andcounting them. The data are shown in Table 1.
Table I. Field and storage rot for screen of new and presently registered fungicides.
Treatment/rate Harvest Eight week Mean berryfield rot storage rot wt (oz)
Bravo -Bravo -Bravo WS, 5.5 pt 7.4 d 2.3 b .04 aBravo -Bravo -Abound, 5.5 pt/15.4 oz 17.1 cd 4.5 b .04 aBravo -Bravo -Product A, 5.5 pt/14 oz 27.6 bc 4.4 b .04 aBravo -Bravo -Product B, 5.5 pt/6 oz 18.1 cd 4.2 b .04 aBravo -Bravo -Abound, 5.5 pt/6 oz/ 15.4 oz 32.6 b 7.8 a .04 aUntreated control 81.8 a 7.7 a .04 aMeans followed by a different letter are significantly different,
Student-Newman-Keuls Test, P=0.05.
Using Bravo for the thirdfungicide application made asignificant difference, as thebest control of field rot andstorage rot was achieved by thistreatment. However, the sub-
stitution of either Abound orProduct B did not result infield rot or storage rot that wasstatistically greater than thethree Bravo application treat-
ment. The substitution ofProduct B for the second BravoPage /2 June 2003 CranberriesRESEARCH

application resulted in significantly more field rot and storagerot. None of the treatments adversely affected berry size (data notshown) or berry weight.
Long-term fungicide applications possiblyleading to resistanceAbound and Product C are fungicides of new chemistry, onesthat affect a single site in the pathogenic fungi that cause fruitrot. Consequently, because of this narrow effect on the targetfungi and because they have some limited systemic activity, thefungi may eventually develop resistance to these fungicides. Tri-
als were established in the cultivars 'Early Black' and 'Crowley'on State Bog in 2001 to determine whether these fungi wouldstart to evolve resistance to continual application of these fungi-
cides at full rates over consecutive growing seasons. Three appli-
cations of Bravo, Abound and Product C were sprayed in eightreplicated plots (as described for the earlier trial) in both 2001and 2002. Two other treatments varied the fungicide applications:
Abound-Bravo-Product C (2001)/Abound-Bravo-ProductC (2002)
Abound-Bravo-Product C (2001)/ Product C-Bravo-
Abound (2002)
Table 2. Field and storage rot for long-term fungicide applicatioTreatment/rate Harvest Eilfield rot stcBravo WS -Bravo WS -Bravo WS, 5.5 pt 5.8 d 2Product C -Product C -Product, 4 oz 10.7 d 4Abound -Abound -Abound, 15.4 oz 45.1 bAbound -Bravo -Product C 16.1 be cProduct C -Bravo -Abound 12.8 cd 5Untreated control 80.3 aMeans followed by a different letter are significantly different,
Student-Newman-Keuls Test, P=0.05.
Tble 3. Field and storage rot for long-term fungicide applicatioTreatment/rate Harvest Eilfield rot stoBravo WS -Bravo WS -Bravo WS, 5.5 pt 4.0 dProduct C -Product C -Product, 4 oz 4.3 dAbound -Abound -Abound, 15.4 oz 23.7 bAbound -Bravo -Product C 17.2 bcProduct C -Bravo -Abound 7.1 cdUntreated control 65.8 aMeans followed by a different letter are significantly different,
Student-Newman-Keuls Test, P=0.05.
Trials were carried over from 2001 into 2002 using the exactsame plot areas, and these areas will be treated in 2003 for a thirdseason.
Fungicides were applied to the 'Early Black' plots on:
June 10 (8% bloom)
June 20 (60% bloom)
July 2 (99% bloom, 15% fruit set)
Fungicides were applied to the 'Crowley' plots on:
June 17 (15% bloom)
July I (90% bloom, 8% fruit set)
July 10 (100% bloom, 40% fruit set)
Methodologies were as described previously. 'Early Black' ber-
ries were harvested Sept. 19-22; 'Crowley' berries Sept. 25-28. Thedata are shown in Tables 2 and 3.
Results in the two trials were similar. Three Bravo applica-
tions once again resulted in the best control of field rot and stor-
age rot. Product C, as it did in 2001, provided very good field rotcontrol and slightly inferior storage rot control. Three applica-
tions of Abound provided poor fruit rot control in both 2001and 2002; this fungiciden study (Early Black'). should always be used in com-
bination with other fungicides.
ght week Mean berry The two combination treat-
orage rot wt (oz) ments provided decent control.2 b .04 a of field rot but lesser control.4 ab .04 a of storage rot. These plots willreceive a third year of the full7.6 a .04 arate of these new fungicides in).5 ab .04 a 2003. Isolates of fruit rot fungii.2 ab .04 a will be cultured from rotted3.0 a .03 a berries in July and August andadded to previously culturedfungi of these genera in ourculture collection. They willbe screened on agar containingvaried amounts of Aboundand Product C to determinen study ('Crwley'). whether there has been anychange in the sensitivity of theght week Mean berry fungi to these fungicides dur-
rage rot wt (oz) ing the course of the fungicide2.5 b .06 a applications.
4.3 ab .06 a(Please turn page.)
6.0 ab .06 a6.4 ab .06 a3.6 b .06 a6.9 a .06 biCranberries June 2003 Page/3

Timing of fungal infection based on fungicide ttimingThis trial was a portion of a larger project funded by the fUSDA/CSREES Northeast IPM Program. This project is a two- fyear study that is determining the source(s) of the overwinteringinoculum for the four major fruit rot fungi in the four areas wherecranberries are grown -Coleophoma empetri (cause of ripe rot),
Colletotrichum gloeosporioides (cause of bitter rot), Phyllosticta vaccinii s(cause of early rot), and Physalospora vaccinii (cause of blotch rot). cIt involves exhaustive sampling and culturing of cranberry leaves sand stems and spore trapping (airborne and waterborne) during 1Table 4. Fungicide schedules used in the fungicide timing stuTrt #1 #2 #3 #4 #5 #6 #7Table 5. Field and storage rot for fungicide timing studyTreatment/rate Harvest Eight week Mean berryfield rot storage rot wt (oz)
Untreated control 8.4 a 4.6 a .06 aJune 10-June 17 1.6 b 3.0 ab .06 aJune 17- June 24 0.5 b 1.5 b .06 aJune 24-July I 1.4 b 2.3 b .06 aJuly I -July 8 0.4 b 1.8b .06 aJuly 8 -July 15 0.7 b 2.1 b .06 aJuly 15-July 22 1.2 b 1.6 b .06 aJuly 22 -July 29 1.0 b 2.5 ab .06 aJune 10 -June 20 -July I 0.7 b 1.9 b .06 a:he course of the growing season. The other key focus of thisproject is to determine when these fungi (and other pathogenicfungi) are infecting the flowers and developing berries, and whenfungicides are best applied for optimal control of the disease.
Plots were established in the cultivar 'Ben Lear' on State Bog.
The different fungicide schedules are shown in Table 4. The firstipplication was made at 8% bloom. The first application of eachubsequent treatment was sprayed one week later. Each treatment:onsisted of two sprays seven days apart, except for the 'standard'chedule of three applications roughly spaced 10 days apart. Theatest treatment had its first fungicide spray applied at a pointwhere the berriesd were set and sizingy up nicely (far beyondthe point when fun-
#8 #9 #10 % rotgicides are usuallyG applied in a commer-
cial setting). Meth-
odologies were asdescribed previously.
Berries were har-
vested Sept. 5-7. Thedata are shown inTable 5.
There was sur-
Ju129 prisingly little fruitrot in the plots. Con-
sequently, all of theschedules (employ-
ing two or three ap-
plications) equallycontrolled field rotand storage rot com-
pared with the un-
treated check. Therewere no deleteriouseffects on berry sizeor weight. The trial-~ 0 -- ---
will be repeated in these same plots in 2003with (hopefully) more fungal inoculumpresent. In addition, a smaller version ofthis trial will be conducted in the high in-
oculum 'Early Black' section, where thesedifferent treatments should sort out muchbetter.
AcknowledgementsFunding for these trials was provided bySyngenta Crop Protection, Inc. and theUSDA/CSREES Northeast IPM Grant Pro-
gram. I wish to thank Jane Mika, NoraCatlin, David Janas, Nick Caruso and LizWade for their hard work throughout thevarious phases of the research.
Page /4 June 2003 CranberriesI S A M P L I N2 C O N T R O L3 Jun10 Jun174 Jun17 Jun245 Jun24 Jul0I6 JulOI Jul087 Jul08 Jull58 Jull5 Jul229 Jul2210 Jun10 Jun20 JulO IJun0O -8% bloomJunl7 -40% bloomJun20 -50% bloomJun24 -85% bloom, I% fruit setJulO I -99% bloom, 18% fruit setJul08 -100% bloom (20% remaining), 70% fruit setJull5 -100% fruit setJul22 -100% fruit setJul29 -100% fruit setMeans followed by a different letter are significantly different,
Student-Newman-Keuls Test, P=0.05.

Cranberry Vines for SaleGryglesii #1 or Pilgrim: $2,500/tonStevens or Ben Lear: $1,500/ton20% discount on orders of 15 tons or more.
Weight on delivery used to compute amount due.
Bog Farm, Inc.
Eric JonjalP.O. Box 38 * Minong, WI 54859-0038Tel: (715) 466-4714 * Fax: (715) 466-4718Email: slott9318@aoo.comOUR AD ISN'T THE BIGGESTBUTWE GUARANTEE OUR INVENTORY IS!
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n the past year, many cranberrygrowers have taken advantage ofgovernment payments under theEnvironmental Quality Incentives Program(EQIP) and the Wetlands Reserve Program(WRP). (Please see the article on EQIP pay-
ments on page 15 in the September 2002 issueof Cranberries.) Proper reporting of thesepayments is essential to ensure that grow-
ers do not overpay taxes.
Most tax practitioners are familiar withthe treatment of conservation expendituresfor farming. This familiarity may lead tothe erroneous treatment of payments un-
der EQIP and WRP. Because they look andsmell like conservation programs and ex-
penditures, some tax professionals may in-
clude cost sharing payments from these pro-
gram in income, and then report the cor-
responding expenditures as conservationexpenses on Schedule F. The problem withthis treatment is that deductions for stan-
dard conservation expenses are limited to25% of a farmer's gross income from farm-
ing for the year, and any expenditure inexcess of this amount must be carried overto future years.
Since EQIP and WRP payments maybe substantial, often far in excess of 25%
of gross income, this type of treatmentcould lead a farmer to paying much morein taxes than necessary.
In a recent ruling, the IRS determinedthat payments under the EQIP Programand the WRP program are eligible for spe-
cial treatment under Section 126 of theInternal Revenue Code. EQIP and WRPpayments are excluded from income, andexpenditures reimbursed by these paymentsare excluded from expenses. These are sub-
ject to some limitations beyond the scopeof this article, but the important thing isPage /6 June 2003 Cranberriesto be able to point your tax preparer in theproper direction. Excluding these projectsfrom both income and expenses avoids the25% of gross income limitation and thepossibility of overpaying income taxes.
BackgroundEQIP was established under the 1996Farm Act, and administered by the FarmServices Agency. The program providescost sharing for improvements and modifi-
cations to water resources, including irriga-
tion, small watersheds, etc. Cost sharingSaving Taxes onCost Share PaymentsCHARLES W. HARRIS CO. INC.
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under the EQIP program usually rangesbetween 50 to 75% on eligible projects.
The WRP, authorized under the FoodSecurity Act of 1985 and reauthorized bythe 1996 Farm Act, and is also adminis-
tered through FSA. This is a voluntary con-
servation reserve program designed to re-
store and/or protect wetlands on privateproperty. Participating landowners may sella conservation easement on their propertyto the federal government or cost share cer-
tain wetlands restoration projects.
What to doThese two programs have been recentlyapplied to the cranberry industry and manygrowers may have already signed up. Grow-
ers who received payments under eitherprogram should refer their tax professionalto Section 126 of the Internal RevenueCode, as well as IRS Ruling 1997-55.
The ruling can be accessed by the fol-
lowing link: http://www.unclefed.com/
Tax-Bulls/1997/Rr97-55.pdf 0TAXES

cranberryreal estate sales & appraisals, lIcDealing Exclusivelywith WisconsinCranberry MarshSales and AppraisalsP.O. Box 997Wisconsin Rapids, WI 54495-0997Telephone: 715-423-8357 Fax: 715-423-93035'fayaen §Mfag.
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As a thank you for trying Acephate 97UPTM, UPI will rebatedirectly to you $.50 for every 1 Ib. can and $5 for each 10 Ib.
bag. To qualify, you must purchase a minimum of one caseof 12x1's or one 10 Ib. bag of Acephate 97UP between May1, 2003 and August 31, 2003.
To collect your rebate, simply mail your receipt and the UPCcode from the Acephate 97UP package to: High Returns forCranberry Growers, c/o Buz Spaulding, 2 Mayo Shores Lane,
Center Harbor, NH 03226 or Email us at buz@upi-usa.comAcephate 97UPTM -Expect the Benefits of Savingswithout Sacrificing QualityUnited Phosphorus, Inc.
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Always read and follow label directions before buying or using this productRaymond St. Jacques, Sales; David St. Jacques, OfficeTel. (508)-295-0497 * 1-(800)-294-0497 * Fax: (508) 291-257750 Carver Road, West Wareham, MA 02576www.cranberryharvesting.comVISA & MASTERCARD accepted

Advanced EngineRebuilding, Inc.
Rebuilding pumps and enginesfor the cranberry industry.
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References.
176 Main StreetWareham, MA 02571tel. (508) 295-2288toll free: 1-800-427-2688CRANBERRYGROWERSREALTYListings of buyers and sellerswelcomed on cranberryacreage and upland.
Appraisals.
DOUGLAS R. BEATONE. SANDWICH, Mass. 02537(508) 888-1288CROP POLLINATION&
CRANBERRY HAULINGfor Wet Harvest"We appreciate yourbusiness."
2 EC HERBICIDE* Controls both annual and perennial grasses* Costs less than competing grass herbicides* Concentrated, lower use rates required* Packaged in convenient, 1-gallon containers* Labeled on both bearing and non-bearing cranberriesVAUi" Products That Work, From People Who Care TMS Valent U.S.A. Corporation February 2003 03-1111Walnut Creek, CA 94596-80251-800-6-Valent (682-5368) -www.valent.com © 2003 Valent U.S.A. CorporationFull service Certified Public Accountantsand Business Advisors serving the needsof the Agriculture community.
CARLIN, CHARRON & ROSEN LLPCertified Public Accountants and Business AdvisorsWorcester, Boston, Middleboro, Providence, NewtonAnn Hudson, CPA, Partner508-926-2234 www.ccrweb.comS (781) 293-3218I*-I ^EIER EARTHMOVING, INC.
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Petr .eirPrsidnt63SothSteet-Hliax-M 033D4LGP * Lazer Equipped * 225 ExcavatorLand Clearing * Pond & Canal ConstructionCranberry Bog Construction20 years experienceSPeter K. Meier, President63 South Street, Halifax, MA 02338

Museum Names DirectorExpansion plans approvedBernadine Arena, director, CranberryMuseum and Gift ShopThe Cranberry Museum (CMI) ofWarrens has named Bernadine Arenadirector for the Cranberry Museum andGift Shop. She replaces Jessica Potter,
who is leaving after two years to operateher family's cranberry marsh.
Previously Arena was director of theSparta Convention and Visitors Bureau,
with experience in promotional, tourism,
retail and on-line activities.
"We are extremely pleased abouthaving Bernadine join our team at theCranberry Museum and Gift Shop," saidTom Lochner, Wisconsin State Cran-
berry Growers Association executivedirector. "Her experience in the tourismand retail business is ideal for theposition as we will be focussing onincreasing our marketing efforts. Herwork in marketing and promotion of thearea is definitely a big asset for us."
"I am really excited about expandingthe Cranberry Museum and Gift shop sothat we can provide the public withinformation on the industry," Arenasaid. "I am looking forward to buildingthe business at the current site andworking with the Warrens CranberryFestival and CMI Board of Directors torelocate to the new site in the Village ofWarrens."
In April the Cranberry Museum, Inc.
board of directors approved a businessplan which would lead to the creation ofa Wisconsin Cranberry Discovery Centerin the former Union Cranberry Ware-
house in the Village of Warrens. Thebuilding is currently owned by theWarrens Cranberry Festival. The festivalboard has approved remodeling thefacility to accommodate the DiscoveryCenter.
The $500,000 remodeling project isexpected to start this summer. Plans areto have a retail outlet in place for theSept. 26-28 Warrens Cranberry Festivalwhich attracts some 100,000 visitors. Theprojected completion date of the Discov-
ery Center is April next year.
"We are committed to the develop-
ment of a unique facility in the commu-
nity which can serve as a platform for ourefforts on public education and promo-
tion," said Greg Fanning, CMI president.
"The Wisconsin Cranberry DiscoveryCenter will consist of an enhancedmuseum, a Wisconsin Cranberry TasteTest Kitchen, a retail shop and a libraryand archives area. "Since Wisconsin is aworld leader in cranberry production, webelieve that such a facility is appropriateto reflect that leadership," he added.
The Cranberry Museum and GiftShop is currently located four miles eastof Warrens, WI. It is open for businessseven days a week from 10 a.m. through4 p.m. through November 1 or byappointment. yCranberries June 2003 Page 19Phone (715) 627-4844FAM BUREAU COOPERAi TIVE a (800) 807-9900PO. BOX 54 ANTIGO, WISCONSIN 54409-0054 ANTIGO Fax (715) 627-2956SUPPLYINGAGRICULTURAL CHEMICALSBRAVO * SEVIN * ORBIT * ORTHENE * EVITAL * CASORONGUTHION * DEVRINOL * DIPEL * COPPER-COUNT-NANDDELIVERING A COMPLETE LINE OF FERTILIZERWITH FRIENDLY SERVICE!
WISCONSIN

A Berry Challenging Life:
A children's story on bouncing back.
by Lisa Shilo ChaseBrewster, Mass. -In the middle of abog in this lower Cape town, a big red cran-
berry stood out among his peers. He wasspotted one weekend in 1978 by the bog'sowner, Jim Coogan, and was promptlynamed by his six-year-old daughter, Katie.
After completing his weeding and work-
ing on the bog's drainage system in prepa-
ration for the harvest, Coogan returned hotwith Katie, and his two other children, JiiCLARENCEThe Cranberry Who Couldn't BounceWritten and illustrated by Jim Coogan$9.95 from Harvest Home Books(508) 385-4929meCarolyn. Later that evening Coogan decided to write a story aboutthe big red cranberry and sketch accompanying illustrations forhis children.
Now, almost 25 years later, Clarence's story, with his chal-
lenges and triumphant ending, has been published for the gen-
eral public in a children's book geared for ages three to nine.
"The story's key message is you have to work hard to over-
come problems to be successful," Coogan explained. "Don't giveup. Clarence's biggest challenge is that he couldn't bounce. Butcranberries have to bounce to be good. So Clarence went on adiet and began to exercise, and in the end was successful, whenhe had to be."
The story also teaches children about the growing and har-
vesting of cranberries.
"The response from cranberry growers who have already readthe book has been very positive so far," Coognan said. "It wasfun being a parent of three young children and being able toconnect to the cranberry."
Coogan taught history for almost 30 years at the Dennis-
Yarmouth Regional High School in Yarmouth, Mass. He had asmall bog, and raised cranberries as a hobby for about 10 years.
In 1986, he sold it to Bill Flagg, who turned into into a "modelcommercial bog".
"Clarence" was first read to the Coogan children by their fa-
ther about two weeks after spotting the big red cranberry on thebog. They liked it, and over the next couple of years, brought thestory and illustrations into their classes so their teachers at theEzra Baker Elementary School in Dennis could read it to theirclassmates. Some of the children drew pictures of Clarence whichthe Coogan kids would bring home to their day.
The children grew up and moved out of the house, andPage 20 June 2003 Cranberries"Clarence" was placed in an orange binderin a file drawer in the Coogan cellar. ThenSone day last year, Katie, now 30 andmother of three-year-old Aria, came for avisit and asked "Where is Clarence?"
"I had to look a bit to find him, but Igot out the original and my grandchildrenreally liked the story," Coogan said. "Mydaughter said 'Dad, you ought to publishthis.' So, I did, and thus Clarence made it tothe bookstores."
Coogan is a popular lecturer and writer on Cape Cod his-
tory, and has written two other books: Cape Cod Companion andCape Cod Voyage. -
The alternative to buying all newequipment in troubled times is to repairyour old equipment.
HAYDEN MANUFACTURING COMPANYdates back to 1892, giving us theexperience and knowledge to repairalmost anything. Also in that time we'vecompiled a lot of stock, some of which isover 100 years old. So come in and have alook around and see if we have whatyou're looking for. We can do your repairsor with our replacement parts you can doit yourself. We'll be right here at:
50 Carver RoadWest Wareham, MA 02576Call us at 1-800-294-0497or 508-295-0497On the web:
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* CHECKOFFS (Continued from page 5.)
The Wisconsin Cranberry Board'scheckoff is being examined for fallout fromthese First Amendment cases. The WCB is"structurally different" from the Washing-
ton Apple Commission said Tom Lochner,
Wisconsin State Cranberry Growers Asso-
ciation executive director. "We have ourbudget and contracts approved by the [state]
Department of Agriculture," he said.
The WCB approved 18 projects total-
ing $209,452 at its budget meeting onMarch 31. Over half of the budget is dedi-
cated to health and medical researchprojects. Generic promotion accounts foralmost 20 percent of the budget, with theremainder for on- going crop research.p-
For Sale2 Hayden SeparatorsI Bailey Separator508-789-6003Classified Ad Rates$22.00 for first 16 words. $.50 extraper additional word and for bold orunderlines.
Deadline: 30 days before publicationdate. Send check/money order to:
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South Dennis, MA 02660John Sennott, Owner16 4*otAgricultural * Lawn * Commercial GolfPLEASE CALL FOR YOUR FREE ESTIMATE508-385-7403 or 508-430-7493FAX: 508-385-7538Valuing Cranberries Since 1976Arthur E. Clapp ARACLAPP APPRAISALSAPPRAISALS * CONSULTINGPost Office Box /16 * Tolland, Connecticut 06084Telephone: (860) 872-2373 * Fax: (860) 872-3480" .Susan Meharg" RealtorREALTO Residential Land Commercial* A lifetime of experience in the cranberry industry *
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SCRANBERRY HIGHWAY * WEST WAREHAM, MASSACHUSETTS 02576ason, IN. (508) 295-1553G.A.F. Engineering Inc.
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