Keri Jacobs, assistant professor, wrote an article on the potential impacts of a section in the new Tax Reform and Jobs Act dealing with deductions for cooperatives and producers. The article, "A Discussion of the Sec 199A Deduction and its Potential Impacts on Producers and Grain Marketing Firms," appears in farmdoc daily.
Jacobs was quoted and the report referenced in a Jan. 29, 2018, article in Feedstuffs.com.
Jacobs was also interviewed by Brownfield Ag News regarding the section that allows special deductions for pass-through entities, including cooperatives, and producers who sell to cooperatives.
“Some regions – of the state of Iowa, for example – in the Midwest do have the capacity to handle these harvest-time, or even seasonal gluts of grain that may arise due to local price impacts. There will be other areas where the infrastructure just isn’t there in a cooperative firm to manage those. So then the question is ‘Well, how is grain going to move?’”