Added days before the tax bill was signed, the wording gives farmers who sell grain to cooperatives an unintended advantage

Agriculture trade groups and federal officials are working to change part of the new tax law that gives farmer cooperatives an edge over independently owned businesses.

The provision, added days before the tax bill was signed in December, was designed to make sure cooperatives benefit from a new deduction for pass-through businesses. But as written, it unintentionally created a significant advantage for farmers who sell grain to cooperatives and could allow some farmers to wipe out their taxable income.

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