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New Tax Law May Threaten Grain Companies

Last minute addition gives producers a strong incentive to sell to co-ops

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Mark Weinraub and Tom Polansek reported for Reuters on how the new tax law may have a sizable impact on grain companies and their ability to source grain. The new law allows producers to claim a 20% deduction on sales to cooperatives, giving co-ops a heavy advantage in the marketplace. The new law has companies like ADM, Cargill and other large grain companies looking for a solution, but some fear that some grain elevator could be put out of business.

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