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: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.