NEW TAX LAW COULD GIVE COOPERATIVES ADVANTAGE OVER PRIVATE GRAIN COMPANIES

NASHVILLE, Tenn. (DTN) — The law of unintended consequences has followed close on the heels of the new tax law, and it is coming down on private grain companies.

Language added to the tax law in December to help boost farmer cooperatives could end up causing famers to deliver their grain and other commodities largely to cooperatives, at the expense of private grain companies, in order to get a larger deduction on their income.