Reuters' Tom Polansek and Mark Weinraub reported on private grain handlers that are paying thousands of dollars in legal fees to register as co-ops due to an unattended side effect of the new tax law. A last-minute clause inserted into the tax overhaul gives producers a strong financial benefit when selling to co-ops vs privately held companies. Larger companies like Archer Daniels Midland Co. fear they will be unable to source grain this harvest if the law is not fixed.
Tax Law Forces Grain Companies to Register as Co-ops
New tax law gives farmers a financial incentive to sell to co-ops
November 30, 2020