Letters

Letters Governor did his job in Spencer

To the Editor:

I would much rather take the word of one person caught in that horrifying experience of the tornado in Spencer than a politician trying to get votes!

The governor was there and did the job. Performance, not promises!

Midge Carlson

Vermillion

Make-A-Wish gives thanks

To the Editor:

Our heartfelt gratitude to Hy-Vee and KVHT Radio for the recent fundraising event held to benefit the Make-A-Wish Foundation of South Dakota.

Auctioning a NASCAR pop machine and other memorabilia generated $1,254.50 to help grant wishes to children, in South Dakota, who live with fear, anxiety and pain every day of their lives.

A special thank you to all those who participated in the event in any way and to those who purchased the items.

Hy-Vee and KVHT Radio and the Vermillion community can be truly proud of the efforts put forth to support children who have very few tomorrows.

In November, Make-A-Wish will be granting its 300th wish. Several sick children in the Vermillion area have been among the 300. It's with a the generosity of people like those at Hy-Vee and KVHT Radio that Make-A-Wish can continue its mission of granting wishes to children with life threatening or terminal illnesses with the probability of not surviving beyond their 18th year.

"We make a living by what we get, but we make a life by what we give."

With warm appreciation,

Mary Olinger, President/CEO and Staff and Board of Directors Make-A- Wish Foundation of South Dakota

Amendment "E" prohibits effective partnering

To the Editor:

Farming has always been a business of neighbor helping neighbor. For generations farmers have been partnering in various ventures to enjoy labor savings and economies of scale. Amendment "E" takes all of this away.

There are five business arrangements commonly used by farmers today, including general partnerships, sole proprietorships, cooperatives, Limited Liability Companies (LLCs), and S Corporations. Amendment "E" takes LLCs and S Corporations and makes them illegal (unless you are blood related). The other business arrangements have some significant pitfalls. Let's briefly discuss what they are.

Let's say that Joe and Bob are unrelated neighbors and they decide to purchase a line of machinery. Farm machinery is very expensive and the more acres covered per machine reduces the overall cost per acre. Joe and Bob form a general partnership and everything works well in the beginning. There is a structure in place and they both contribute equally. However, several years down the road, hard times fall on Bob and he incurs substantial personal debt. He defaults and the lender wants half of the machinery in the partnership to pay Bob's personal debt. Joe is now faced with the forced purchase of Bob's half of the machinery. If Joe cannot afford to purchase the machinery at this time, the partnership is forced to sell out and both farmers end up with no machinery. They need an alternative business arrangement that would keep Bob responsible for his business and Joe responsible for his, so that Bob's personal debt would not impact Joe.

Using the same situation, but this time: Joe and Bob decided to purchase machinery as sole proprietorships. There is no structure, therefore, who buys what? Does Joe buy a tractor and Bob buy the planter? They do not contribute equally so who pays the repair bills? What happens when the tractor needs a major repair during planting season and Joe cannot afford to repair? Where does that leave Bob? As you can see buying equipment as individuals has no structure and is often not equal and fair to both farmers.

Cooperatives, as we all know, involve many members and a substantial amount of assets. Unless Joe and Bob want to purchase millions of dollars of machinery and involve hundreds of other farmers this option is not viable.

What is viable? Limited Liability Company (LLC) or a S Corporation!! In these arrangements Joe and Bob know who is responsible for what and share accordingly in the costs and profits (if any). There is structure, and there is protection. If Bob incurs personal debt he cannot unfairly impact Joe's finances. If Bob decides to bow out, Joe can purchase the machinery over time according to the bylaws of the company. As you can see these business structures define responsibilities up front and have many advantages over general partnerships and sole proprietorships.

How does Amendment "E" affect this? Amendment "E" eliminates all Limited Liability Companies and S Corporations unless members are blood related. In the above case Joe and Bob are not related thus their options are not good. LLCs and S Corps. have been around for quite a while. They are the preferred choice for business structure in most businesses. If our friends in other industries can utilize this structure, why can't farmers? Amendment "E" is not fair. Vote NO on "E".

Sincerely,

Chet Edinger

Mitchell

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