Category Archives: Cooperatives

Visit From The Grinch!

By Dennis Gardiner

Which “Grinch” visited our coop clients this year? The one whose heart grows 3 times? Or the one who stole all the presents? Well, the answer is it will vary! The effects of the new tax law changes are still being contemplated (and debated) and you are likely getting inundated with information from many sources. […]

R&D Tax Credits For Your Farmer/Members

By Dennis Gardiner

Over the last two years almost all you have had a study done to determine how much research and development (R&D) tax credits your cooperative could claim. Working with the Alliant Group, we have been able to amend returns to claim the credits, use the credits on the current tax returns, or carry the credits […]

2018 Regional Patronage – CHS

By Robert Bell

In November of 2017 CHS reported a net income of $127.9 million for the fiscal year ended August 31, 2017, compared to net income of 424.2 million reported in fiscal year 2016. Furthermore, CHS experienced a loss before income taxes of $54.8 million compared to before tax income reported of $419.9 million in fiscal year […]

Cooperatives – What We Expect to See in 2018

By Dennis Gardiner

This year seems to be starting with a lot of excitement, anxiety, confusion and uncertainty over the new tax law changes. How that will impact this year’s decisions, or perhaps 2019 decisions, is unknown at this point. We believe once we have a full grasp of the impact of the new tax rules, you will […]

Cooperatives – What We’ve Seen in 2017

By Dennis Gardiner

It is that time of year again. We reflect back on the firm’s 100+ cooperative client base to share what we have seen over the past year. We had a few outliers that performed much better than our overall characterization of the past year. That said, there are those that performed not as well. Here […]

Cooperatives – What we expect to see in 2017

By Dennis Gardiner, Managing Partner

Okay, this year is looking to be different than what we have been expecting over the past years. Obviously, I am merely speaking from my vantage point; after being involved in audits, sitting through board and annual meetings, visiting with you managers and our partners who are involved in your audits. What we expect to […]

Cooperatives–what we expect to see in 2016

By Dennis Gardiner

Those of you reading this article every year must think we sound like a broken record, not much changes here. Much of what we expected to see over the last year continues to be what we expect over the coming year. Mergers: The mergers just keeping coming. Across the Midwest (IA, NE, SD, MN & […]

Cooperatives–what we’ve seen in 2015

By Dave Thomsen

Sales dollars decreased considerably with lower grain and energy prices. Better corn and bean margins on steady to lower volumes. Agronomy margins down on steady to lower tons. Energy margins up slightly on steady to lower volumes – propane volumes down considerably with drier 2014 harvest. Feed divisions showed improved results. The drier harvest led […]

Non-qualified Patronage Received from Regional Cooperatives

By Dennis Gardiner, CPA, Managing Partner

We are seeing more use of non-qualified patronage from the regional cooperatives. Treatment of these allocations varies from client to client, firm to firm, etc. Even our decision may change as we see the regional indicate or demonstrate they intend to revolve the non-qualified patronage. For example, CoBank specifically indicates they have no intention of […]

CHS Equity Redemption Program

By Dennis Gardiner

In late April, our cooperative clients received a letter from the Board Chairman of CHS, Inc. regarding the company’s annual equity redemption program.  We have fielded a number of calls on what the letter is telling the member cooperatives regarding their non-qualified equity.  We would tell you “nothing new” (particularly from a tax standpoint). In […]