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...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.