Glitch Fix The Section 199A tax deduction preference for co-ops, which USDA Secretary Perdue called a “glitch,” seems to be moving toward a resolution. Language has reportedly been drafted and is being circulated among key parties. The new provision would reinstate to the extent possible the benefits of the old Section 199 Domestic Production Activities deduction (see Ag Perspectives, 3 November), which was established in 2004 and eliminated by the new Tax Cuts and Jobs Act (TCJA) of 2017. It provided co-ops with a 9 percent deduction from the lesser of taxable income or gross receipts from manufacturing minus the costs of goods sold and other direct manufacturing expenses (only allowing 50 percent for W-2 wages resulting from...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.