2018 Spring Farm

Page 10 March 22, 2018 2018 Logan County Farm Outlook Magazine LINCOLN DAILY NEWS General Manager Troy Bauer of Hartsburg Grain, a private grain company, said that they “are a private surrounded by coops. If the law doesn’t change, in the long run it will put us out of business. If it doesn’t change by harvest, it will have a dramatic effect.” “We are operating assuming it is going to get fixed. Dysfunctional as Washington DC is, though, we are not 100% sure it is going to get done. Timing is really important,” Bauer said. Bauer said, “For Hartsburg Grain, because of our size and financial restraints, becoming a coop is not a viable choice.” “The fear is that we will not see profitable volume. Our costs are fixed and we need a certain volume to cover our operating costs. Hartsburg Grain is in a strong enough financial position that we could handle it one season but not two,” Bauer added. Finally, Bauer said, “There are challenges every year. This is one challenge I can do nothing about.” Scott Docherty, CEO/General Manager of Top Flight Grain in Monticello, a coop grain company with elevators in Logan County, said, “We have seen an increase in calls from current customers and others who have traditionally not been customers of Top Flight inquiring about becoming members.” Docherty believes there will be resolution put forth in the March 23 Omnibus Spending Bill that is currently before the U.S. Congress. Docherty said, “If it does not get amended, coops will see a pickup from producers.” He does not think they will get overrun, but would likely experience a 10-20% increase. In a conciliatory note, Docherty said they were not out to steal customers. “Top Flight will work with the privates to allow their customers to sell to our coop to receive the tax credit but then give the sale to the private elevator they usually do business with.” Docherty said he wants to make sure people know that it will get worked out, and believes that the tax code will revert back in an amendment to eliminate the language giving tax credits of 20% on the gross. [Jim Youngquist] 1 U.S. tax law co-op preference ‘wasted money’: agricultural companies by Tom Polansek, Mark Weinraub, https://www. reuters.com/article/us-usa-tax-agriculture/u- s-tax-law-co-op-preference-wasted-money- agricultural-companies-idUSKCN1G027L Continue 8