Farmer cooperatives and the grain and the feed industry announced a joint agreement to overhaul a new tax benefit for co-ops that gives farmers a strong incentive to sell commodities to them rather than to other companies.
Many producers could see meaningful tax cuts next year, but the sweeping tax bill that Congress gave final approval to Wednesday will leave them without the certainty on expensing and estate planning that farm groups were seeking.
Congressional Republicans are poised to send their historic package of individual and business tax cuts to President Trump's desk before Christmas and also plan to pass a new stopgap funding bill that could include disaster aid to growers hammered by this year's hurricanes.
Congressional Republications finalized a sweeping tax reform package that could cut tax rates for farmers and other small businesses while expanding the Section 179 expensing allowance and doubling the estate tax exemption.
Senate Republicans look to pass their tax bill by the end of the week but it may take some last-minute modifications to satisfy at least two GOP senators’ concerns about the impact on small businesses.
WASHINGTON, Nov. 2, 2017 - The House Republican tax-reform bill would preserve interest expensing for most farmers and would phase out the estate tax, but some producers would lose a tax deduction that their cooperatives pass on to them.