World Perspectives

Tax Glitch Sill Not Fixed

One of the late changes to the recently passed U.S. tax reform bill created some significant, unintended consequences that gave farmers a huge tax break and cooperatives an incredible advantage over privately-owned grain companies. As it stands today, the situation allows farmers to deduct 20 percent of their total gross sales to a COOPERATIVE from their adjusted gross income for tax purposes. This means if a farmer has $100,000 in sales to the local cooperative, $20,000 can be deducted from his adjusted income. Continuing this example, if the adjusted gross income was $50,000, that would drop to $30,000 because of the sales to a cooperative. For a large farmer with $1,000,000 of sales to a cooperative, his adjusted gross income would be re...

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From WPI Consulting

Communicating importance of value-added products

Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.

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