cancel
Showing results for 
Search instead for 
Did you mean: 
timetippingpt
Honored Advisor

Re: Floor Talk March 15

Sounds like party out west! 

I did just hear they are going to have to fit it....why? US Steel is in the process of

setting up a coop...   :-)

0 Kudos
sw363535
Honored Advisor

Re: Floor Talk March 15

Time, i appreciate your thoughts, but there are a few problems with your theory that need explaining...

 

First US Steel will need to be in production agriculture to gain using this law and by forming a coop.  Perhaps that is the reason for the law.... to facilitate the takeover of supply by endusers....... by buying out the coops to cancel out the tax advantage or gain it.  Most coops don't look all that good on the balance sheet.

 

The big gain here is the ability to use the deduction against grain income to transfer it to non farm income.  It really takes outside income to take advantage of the deduction.  It will be three more years before production agriculture will have a need for another deduction.   I think the intention of the law is to save coops who  have been loosing the ability to handle volume..and are incurring debt and income loss...several in trouble....... with the new storage construction by both farms and endusers and direct shipment.  (every other idea I think of is somewhat deviant and unethical)

We have seen reports on our discussions of how to deliver direct and still use a coop to handle the paper transfer for tax advantage while recieving the higher price of direct delivery.  It is an easy law to work to an advantage.

 

But your primarily right........ any good tax advantage or subsidy is going to draw lots of new ways to wrestle it away from producers and taxpayers..... similar to the crop insurance subsidy or the disadvantaged minority legal threat.

 

If congress won't think past the end of their noses,,,, someone else will...

0 Kudos
Hobbyfarmer
Honored Advisor

Re: Floor Talk March 15

SW,

It is NOT limited to ag coops.

 

It was put there by a rural state congress critter that didn't realize there were and are other types of coops.

0 Kudos
sw363535
Honored Advisor

Re: Floor Talk March 15

If so, maybe the original intent was not agricultural.  and If so I misread the SF type reporting on the subject and was misled by accounting information circulating among CPA firms in Ks....(who primarily were addressing agriculture's angle on the law).  Who knows who is paying the guy to get their "Crop insurance" style kingdom established.

 

Nothing suprises me when it comes to planting pork with our desire to live the ultimate socialist society in a cooperative style under the new progressive leadership that will surely come back........ Smiley Very Happy

It will happen easier here than it did in Russia.

Lets face it the Federal budget is handled with about the same effeciency as a farmer owned coop, so we will all end up hoping for a job in a cooperative that will own all assets with strings from the rulling class.

 

We do elect too congress very poor leadership quite consistantly.  From soccer moms to entertainers.  But very few statesmen.

 

 

 

0 Kudos
timetippingpt
Honored Advisor

Re: Floor Talk March 15

SW...in your last point...you make the whole point of this country's greatness...on balance, we have seldom elected the "super-qualified" candidate with no soul (like hillary), we have often picked the person we liked, even for the local school board. It is what keeps our government fresh and responsive. The best way to be truly wealthy is NOT through a government job in the USA. For about 70% of the global population, even today, it IS.

 

So, electing entertainers, soccer moms, and to be fair, a very large group of extremely capable leaders, is a good thing, not a bad thing as you suggest. Lincoln wasn't a statesman when elected, neither was FDR, or Reagan. They grew into the job, just like Bush, Obama, and gasp even Trump is growing in the job. Like it or not, meeting with the NK leader, is statesmanship, if from an unexpected source.

 

I still haven't found any better system in existence, so I'll gladly support this one, as flawed as it is...