Effect of TCJA on Agricultural Cooperatives in Terms of Size

The purpose of this research project is to describe how the Texas Cuts and Jobs Act (TCJA) will affect agricultural cooperatives. Agricultural cooperatives represent almost two million farmers in the U.S. and supply all types of fruits and vegetables to major grocery stores throughout the nation. The introduction of this tax reform is expected to increase the size of these cooperatives because farmers will have more incentive to join cooperatives due to the great amount of deduction on top of the lower tax percentage everyone is getting. Due to current events, there was a shortage of data of statistics after the tax reform, which did not allow a full comparison of economic statistics before and after the tax reform. Through extensive secondary research from different articles, cases and simulations published by both universities and the US Department of Agriculture expected results from this act were projected using past, current and no deductions. Findings should illustrate how cooperatives will perform after the implementation of this tax reform to cooperatives as a whole, its members of these cooperatives and independent farmers also referred as non-members.