Farmers and Co-ops Benefit from Tax Bill

Farmers seem to be one of the groups that will benefit the most from the Tax Cuts and Jobs Act.

Under the new tax law, farmers in 2018 will be able to deduct 20 percent of their total sales when they sell their crops to a cooperative, which for some farmers could mean zero taxable income.

Reuters reported last month that ethanol producers and privately run grain handlers fear they will be cut out of the equation. ADM told Reuters it was evaluating the provision and "various potential solutions" to it.

"It is going to put us out of business as a private if something is not changed right off the bat," said Doug Bell, president and general manager of Bell Enterprises Inc. "There is just no reason whatsoever why a farmer would do business with anyone other than a co-op."

Read the rest at Herald-Whig

 

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