Among the problematic portions to emerge so far is what has become known as the “grain glitch.” A late change to the legislation altered a deduction for United States production in a way that permitted farmers to deduct 20 percent of their total sales to cooperatives — agricultural organizations owned by groups of farmers that operate for the benefit of their members.Cooperatives like Riceland Foods and Producers Rice Mill like this tax break naturally. Others aren't so sanguine. See Stephen Steed's report on this for the Arkansas Democrat-Gazette earlier in the year.
This allows farmers to deeply reduce their tax bills, but it has caused an uproar among independent agriculture businesses that say they can no longer compete with cooperatives, since farmers would choose to sell to cooperatives to take advantage of the more generous tax break.
The conservative Tax Foundation said that the flaw should be addressed quickly, saying that, if left in place, “the deduction would allow some farmers to effectively become tax-exempt.”