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...
What You Need to Know Today: USDA reports are delayed until Tuesday due to the federal holiday on Monday. Over the weekend, President Trump announced a ceasefire between Russia and Ukraine. Russia warmly welcomed and confirmed this ceasefire by conducting more strikes against Ukraine. Specific...
On Saturday, 10 October, at a campaign rally in Clarksville, Tennessee, President Trump said that the U.S. and Mexico would come to terms on a new trade deal, and he said Canada does not need to be part of the deal. Trump called the coming agreement with Mexico “great” but gave no d...
Key Takeaways: The United States has steadily lost global wheat export market share since the 1970s, falling from the world's leading exporter to a projected fifth place in 2026/27. The rapid expansion of Black Sea wheat exports, driven by improved productivity and export infrastructure, has r...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.