Agriculture companies against preferential tax for farmers who sell to co-ops

OLYMPIA, Wash. — Some agriculture companies are changing their operations in response to a part of the new US tax law intended to help co-ops.

Under the provision, farmers get preferential tax treatment when they sell their crops to co-ops.

The Wall Street Journal reports large ethanol and grain companies including Green Plains and Scoular are responding by setting up co-ops for their grain purchases.

Other companies including ADM and Cargill, the parent company of Ferndale Grain, are pushing lawmakers to change the law.

A Cargill spokesperson last week said the company hopes Congress will resolve the issue soon… before spring planting.