The new tax reform law will generally have a positive impact on agriculture, but farmers will need to work with their accountant to determine the benefits for their operation. Pat Wolff, Sr. Director of Congressional Relations with the American Farm Bureau Federation provided details of the law at the South Dakota Corn Growers Association Annual Meeting. She says the tax brackets all lowered and farmers and small businesses will also benefit from a 20-percent deduction on income.

She says the Section 179 deduction on equipment and machinery increased from $500,000 to $1 million and became permanent. Plus, there is no limit on expensing other farm inputs.

Wolff says there were unintended consequences with the 199A provision. It was intended to level the playing field for cooperatives, but ended up giving them a market advantage. However, she expects a fix for that shortly.

The estate tax limit was also doubled to $11 million per person and $22 million per couple.