How Will Tax Reform Affect Agriculture?

 

Many people are wondering exactly how the sweeping “Tax Cuts and Jobs Act” will impact their personal tax returns and what the law might mean for agriculture.

 

I’m no tax law expert, but luckily, I know someone who is!  I was fortunate to have Kristine Tidgren from the Iowa State Center for Ag Law and Taxation join me on a recent episode of the Ag Law in the Field Podcast to discuss the ins and outs of the new tax reform law.  You can listen to the podcast episode on your favorite podcast app, or on your computer by clicking here.

 

Additionally, Kristine and her crew at CALT put together a great blog post highlighting the details of the provisions most likely to impact those of us involved in agriculture.  You can find that here.  Another great summary was done by Delta Farm Press and you can find that here.

 

A quick update to something discussed by Kristine on the podcast and in the summary, last week Congress and USDA announced they would attempt to change a provision in the current law Section 199A that gives cooperatives a purchasing advantage for grain over independent elevators.  Currently, farmers can deduct 20% of gross sales to cooperatives, but only 20% of net income if they sell to another purchaser.  Several Congressmen and USDA says this was not the intent of the law.  

 

Video: Planting Corn with Classic Allis-Chalmers Tractors | Full Field Action

Step into the field for a full day of spring fieldwork as this farm plants corn using classic Allis-Chalmers power near Arcanum, Ohio. In this video, the farm is working ground with an Allis-Chalmers 8050 pulling a Salford field cultivator and Brillion Culti-Packer to prepare the seedbed. Right behind, an Allis-Chalmers 7020 handles planting duties with a 12-row White planter, putting this year’s corn crop in the ground. You’ll see a mix of aerial drone footage and ground-level views capturing all the action, along with a voiceover that dives into the history and legacy of these two Allis-Chalmers tractors. It’s a great look at how reliable, older equipment is still getting the job done during spring planting season. If you enjoy classic farm equipment, corn planting, and real-world field action, this one is for you.