The recently passed tax law included a provision that gives farmers a larger tax savings if they sell their goods to cooperatives. Now grain companies, angered by what they see as an advantage being given to their competitors, are setting up their own cooperatives in case the law isn’t amended.
The companies include Cargill, ADM, and Bunge, some of the largest commodity buyers in the world. Despite looking for backup plans in the form of new in-house cooperatives, the grain companies are still advocating for Congress to provide a legislative solution. If the tax law isn’t amended, some farmers could reduce their taxable income to zero.