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: 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...
