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: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
