WPI has written several times about the unintended consequences of Section 199A in the recently passed U.S. tax reform bill, including Dave Juday’s article last Friday. The more time passes without a change in this provision, the more complicated the situation seems to get. Here’s another brief recap:
Section 199A created a huge tax benefit for farmers (or any other entity) who sell to a cooperative. Farmers can essentially deduct 20 percent of the gross value of crop sales to a cooperative from their adjusted gross income on their tax return. Such a tax break seems an unbelievable situation, but it is reality today.
The results of this “glitch” are obvious. A farmer has few incentives to sell to non-cooperat...
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...
