Member Memo: Section 199 and Tax Reform

To: Landus Cooperative members

From: Mark Miner, Chief Financial Officer

Date: Jan. 12, 2018

Re: Section 199 and Tax Reform

As a result of the 2017 Tax Cuts and Jobs Act, significant changes in tax compliance and planning will impact individual producers, producer entities, and cooperatives. To keep up with the latest interpretations of the new law, we are sending a link to a blog published by CliftonLarsonAllen LLP, an accounting firm that specializes in agriculture. They are also Landus Cooperative's tax and auditing firm of record.

The blog contains many articles related to tax reform, with more content being published daily. The site includes a link to subscribe directly to the blog. Recent articles include:

• How do Taxpayers Compare Under Old Law and New Law
• Will Cash Rent Landlords Switch to Crop-Share
• The 20% Deduction for Qualified Business Income
• How the Tax Bill Affects Patrons

http://www.farmcpatoday.com/

Also below, is a link to a free webinar hosted by CliftonLarsonAllen called 'What Tax Reform Means for Farmers.' The webinar is scheduled for February 7th and is intended for anyone involved in tax planning for their farm or family.

https://www.claconnect.com/events/2018/tax-reform-for-farmers-2-7-2018

Generally speaking, we believe the new law is favorable to farmers and cooperatives, however different facts and circumstances apply to each individual and entity. Therefore we recommend keeping up with the latest on the blog and discussing impacts of the new law on your operation with your tax professional.