World Perspectives

Co-Op Tax Deduction Fix Coming

Gary Blumenthal and Bob Kohlmeyer both discussed the history of co-ops and the changes in their tax treatment under the recent tax reform bill this week. Following is a summary of the previous provision; the change made by the tax reform bill; how the implementation process might unfold; and the outlook on how the new co-op deduction might be revised. First, the old co-op tax provision (see Ag Perspectives, 3 November), known as the Section 199 provision, is highly prized by farmer cooperatives with manufacturing operations. It was established in 2004 and provided a 9 percent deduction (phased in over the years from 3 percent and then 6 percent). The deduction is calculated on the lesser of taxable income or gross receipts from manufacturi...

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From WPI Consulting

Accountability and a comprehensive approach to export programming

WPI’s team helped construct a strategic approach to develop, implement, and track promotional activities in 8 key regions across the globe for an agricultural export association. With continued progress measurement and strategic advisory services from WPI, the association has seen its ROI from investments in promotional programming increase by 44 percent over the past 5 years. Not only does this type of holistic approach to organizational strategy provide measurable results to track and analyze, it fosters top-down and bottom-up organizational accountability.

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