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

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.

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