Gary Blumenthal and Bob Kohlmeyer both discussed the history of co-ops and the changes in their tax treatment under the recent tax reform bill this week. Following is a summary of the previous provision; the change made by the tax reform bill; how the implementation process might unfold; and the outlook on how the new co-op deduction might be revised. First, the old co-op tax provision (see Ag Perspectives, 3 November), known as the Section 199 provision, is highly prized by farmer cooperatives with manufacturing operations. It was established in 2004 and provided a 9 percent deduction (phased in over the years from 3 percent and then 6 percent). The deduction is calculated on the lesser of taxable income or gross receipts from manufacturi...