Paladeni named Tree Farmer of Year

The Clark County Farm Forestry Association, an organization of timber farmers and related industries, named John Paladeni of Yacolt as Tree Farmer of the Year during an annual meeting held Feb. 24 at the Battle Ground Community Center.

Dick Easter, speaking for the Tree Farmer of the Year selection committee, said Paladeni’s farm stood out because it is well managed, thinned and pruned, and because “it was easy to tell that a lot of effort and a lot of thought had gone into its management.”

Paladeni was selected from 10 nominees and four finalists.

“It’s important to have a management plan in order and to be certified,” said Easter, referring to the Paladeni farm.

Paladeni said he started buying property in the Dole Valley area in 1968 and now owns about 200 acres, not all contiguous. In 1990, he purchased 80 acres that his parents, Quinn and Mildred Paladeni, once owned. After his father died in 1959, his mother sold the acreage.

“It changed hands a couple of times before I bought it,” said Paladeni. Mildred died two years ago.

Paladeni retired three years ago from the concrete business and now manages the tree farm by himself, working “not every day.” He is assisted by logger and forester Steve Krueger. There are no alder trees on his lands, said Paladeni, and very little brush.

Paladeni clear cut 21 acres six years ago, and thinned part of his stand two years ago. Some of his trees date back to a 1929 fire that burned through Dole Valley.

Tax attorney speaks

Cynthia Worth, a tax attorney from Tumwater, was keynote speaker for the annual potluck gathering which attracted about 150 people.

Worth said farmers, including tree farmers, need to do a better job of estate planning.

“Farmers don’t plan to die,” said Worth, meaning that farmers don’t make arrangements to transfer land and other assets to their survivors or to deal with estate and other taxes. “So farmers in general pay higher taxes because they do nothing (in estate planning).”

“It doesn’t matter what you do (in estate planning),” said Worth, “just do something.”

Worth discussed the benefits of forming a Limited Liability Company (LLC) for farm management. Such a company requires the creation of an operating agreement—a set of rules dealing with such things as how decisions are made on farm management, and how partners remove themselves from the company.

Worth said an LLC maximizes tax flexibility and lowers the estate tax bill.

Worth said Washington is a good state in which to live because it has no income tax, no gift tax, and a $2 million exemption for estate taxes. In addition, she said, Washington has a low fee for the probate process and “doesn’t make money off of death.”

Worth noted that, with the expiration of the so-called Bush tax cuts, the federal tax on capital gains will increase from 15 percent to 25 percent on Jan. 1, 2013, and the top federal income tax rate will go up from 35 percent to 44.8 percent on the same day.

The Clark County Farm Forestry Association will conduct its annual public tree sale on Sat., March 17, 8 a.m.-noon, in the Albertson’s parking lot behind The Reflector building on W Main Street, Battle Ground. Tree sale chairman John Straub said the Association will offer 13,000 seedlings during the sale.

Members of the Association have ordered 36,500 trees for planting on their farms this spring.

Clark County commissioner Marc Boldt attended the meeting and spoke about plans to update the rural elements of the county’s comprehensive plan. He said the update will take place later this year.

U.S. Rep. Jaime Herrera Beutler sent a representative to the meeting.

Ken Edwards, president of the Clark County Farm Forestry Association, presided over the meeting.