Under the new 199A deduction, farmers can sell their production to a coop and take a tax deduction for net earnings at up to 20 percent of the gross value of their sales. By contrast, if they sell to a non-coop business, their maximum deduction is 20 percent of earnings. The profit implications are huge, and this will strongly encourage farmers to sell to coops rather than to other private or publicly traded agribusinesses. In fact, some of the manipulations being considered to exploit or maneuver around the new law include:
Accountants are advising family farmers to convert their farm structure into small coops. Since coops (especially in the South) cannot handle the volume of trade soon to be diverted their way, they are considering h...
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...
