World Perspectives

More on the Impact of Section 199A Deduction

The “glitch” in the new Section 199A tax deduction provision that incentivizes sales of commodities to cooperatives and leaves a landowner far better off tax-wise by moving to a share crop arrangement was discussed last week by Mike Krueger (see Ag Perspectives, 26 February). However, the value of those benefits is variable and will depend on the price of the commodity as well as the size of the farm (i.e., overall income and tax liability). Based on the data used in USDA’s most recent national costs of production estimate for 2016 (yield of 186 bushels/acre, 313 planted acres and a price of $3.28/bushel), excluding crop payments, the Section 199A deduction for selling to a co-op is worth about 6 cents/bushel to a farmer...

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Mercosur Regional Analysis

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From WPI Consulting

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.

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