DTN writer Todd Neeley reported today that, “On Oct. 11, 2008, one of the nation’s largest ethanol producers, VeraSun Energy, filed for Chapter 11 bankruptcy protection. The action left thousands of farmers who sold corn to the South Dakota company’s ethanol plants at a loss.

“What compounded those losses, attorney Joseph A. Peiffer said, is the producers he represented were faced with VeraSun filing bankruptcy in the state of its incorporation, Delaware.

“Though legal, the move by VeraSun left many Iowa farmers facing the prospects of having to fight a legal battle in a distant state. This made it costly and logistically difficult for farmers to succeed.”

The DTN article explained that, “Peiffer, now a shareholder in Ag and Business Legal Strategies based in Hiawatha, Iowa, has drawn the attention of Washington lawmakers who next week are set to introduce a bill in the United States Senate that would forbid companies from filing bankruptcy in states of their incorporations.”

Mr. Neeley added that, “Sens. John Cornyn, R-Texas, and Elizabeth Warren, D-Mass., are set to introduce the Bankruptcy Venue Reform Act of 2018 next week.”

Jacob Bunge and Richard Rubin reported yesterday at The Wall Street Journal Online that, “The new U.S. tax law has placed Rick Tronson, a North Dakota grain-company operator, in a precarious position by unexpectedly bestowing big benefits on his main competitors.

“A provision inserted into the tax code during Senate and House negotiations in December gave farmers more lucrative deductions when they sell agricultural products directly to the farm cooperatives he competes against rather than to businesses like his own.

Reuters writer Tom Polansek reported yesterday that, “Wal-Mart Stores Inc misled U.S. shoppers by selling organic eggs laid by hens raised in enclosed structures under package labels that said the birds had access to the outdoors, a federal lawsuit alleged on Monday.

“The suit highlights uncertainty among consumers about production practices in the $500 million organic egg industry, farmers said, after the U.S. Department of Agriculture (USDA) last month shelved plans to spell out for the first time what it means for birds to have access to the outdoors.

“Wal-Mart sells cartons of eggs to shoppers at a premium under its Organic Marketside brand with labels saying the eggs came from hens with ‘outdoor access,’ according to the lawsuit filed by a customer.”

Mr. Polansek indicated that, “Wal-Mart said it had not reviewed the allegations, but was taking them seriously.

“‘We hold our suppliers to high standards and are committed to providing our customers the quality products they expect,’ spokesman Randy Hargrove said.

“Representatives of Cal-Maine, which is the biggest U.S. egg producer and also named in the lawsuit, did not immediately respond to requests for comment.”

Brian Taylor Carlson reported on the front page of today’s Des Moines Register that, “Jenny Quiner pulls back giant tarps to check the fragile lettuces growing in her high tunnel greenhouse. Rows of perky green lettuces sprout from the ground. She recovers them, then steps outside into the frigid winter to check on the cover crops in the fields that protect and enrich the soil.

“The scene looks like most any other vegetable farm you would see across Iowa. But there’s one significant difference: It’s in the middle of a residential neighborhood.

“Dogpatch Urban Gardens is the only for-profit farm in Des Moines city limits — the realization of one of Quiner’s dreams.”

Des Moines Register Front Page (Friday, January 5, 2018).

Today’s article explained that, “From the street, the property looks like any other residence. But a closer look reveals a farm stand, a high tunnel greenhouse, signage and meticulous garden plots, with rows of a variety of produce.”

The Register article noted that, “In only two years, Quiner has become a leader in the Des Moines food scene, says Jordan Clasen, owner of Grade A Gardens in Johnston.

“Her produce was instantly recognized for its quality, which opened the door to placing it in local restaurants. Quiner opened a retail space on the farm in May, which includes her produce and some products from other farms. She’s also launching a subscription service — a community-supported agriculture program — which gives subscribers access to weekly produce.”

Mr. Carlson added that, “What Quiner has done at Dogpatch has helped her capture the imagination of other local farmers and inspire innovation.”

Associated Press writer Andrew Demillo reported yesterday that, “Arkansas regulators stood by their plan Wednesday to ban an herbicide that farmers in several states say has drifted onto their crops and caused damage, despite a request from lawmakers to reconsider the restriction and a lawsuit by a maker of the weed killer.

“The state Plant Board again voted in favor of its proposal to ban the use of dicamba from April 16 through Oct. 31. The proposed ban is scheduled to go before a legislative panel later this month.

“Lawmakers in December delayed considering the ban and asked the board to consider a new cutoff date based on scientific evidence and potentially a dividing line based on geography in the state. The 11-3 vote in favor of the ban Wednesday came after the board’s pesticide committee discussed the reasons for the cutoff dates and recommended sticking with the proposal.”

The AP article added that, “Republican Sen. Bill Sample, who had called for delaying a vote on the ban last month, said he backed the ban after hearing the committee discuss the reasons behind it.”

An update posted today at the Delta Farm Press Online indicated that, “Farm Credit East tax experts have reviewed the 2017 Tax Cuts and Jobs Act — the largest overhaul of the U.S. tax code in 30 years. ‘Overall, the new tax provisions will provide significant benefits to Northeast farmers,’ says Dario Arezzo, Farm Credit East senior tax consultant. ‘However, certain provisions will unfortunately limit the value for some producers.'”

Here are a few of the highlights from today’s Delta Farm Press article:

• Alternative minimum tax. The AMT still remains for individuals, but exemption amounts are significantly increased and will be indexed for inflation.

• State and local tax deductions. SALT deductions for state and local property plus income or sales taxes are limited to $10,000 annually.

• Section 179. Beginning with the 2018 tax year, farmers will be allowed to immediately write off capital purchases such as breeding livestock, farm equipment and single-purpose structures (such as milking parlors) up to $1 million. The phase out on this expensing provision doesn’t kick in until a farm reaches $2.5 million in purchases.

• Bonus depreciation. Farmers will be able to write off 100% of qualified property purchased after Sept. 27, 2017 through 2022 (at which point a phase-down occurs). The new law expands bonus depreciation to include new and used property purchased or constructed, and to plants bearing fruits and nuts.

• Section 199 repealed, replaced. The Domestic Production Activities Deduction has been repealed. As a result, many cooperatives accelerated that pass-through deduction to patrons before the end of 2017.

Ag and horticultural cooperatives will have a new 20% deduction. It’ll be beneficial for reducing cooperative income. However, unlike the DPAD, this is taken at the cooperative levels and isn’t directly passed on to patrons.

• Estate tax. The federal estate tax exemption rates double to $11.2 million per individual ($22.4 million for married couples) in 2018.

• Breweries, distilleries and wineries. Alcohol manufacturers will enjoy a two-year excise tax reduction. The credit against the wine excise tax was also expanded, and sparkling wine producers are included.