The 2017 Tax Cuts and Jobs Act created what was known as the “grain glitch” through the creation of the new Section 199A deduction. That provision allows for a 20 percent deduction from income earned by a “pass through” business. “Pass through” refers to small and medium-sized businesses organized as sole proprietorships, partnerships, and S corporations, which “pass” their business income through from the business’ activities to the entrepreneur who owns the entity. The income is then taxed at the personal tax rate. About 93 percent of all farms in the U.S. are pass through business tax filers. But the glitch came from the provision’s inclusion of a 20 percent deduction on &ldquo...
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...