Producers can gift grain they produce to the USD 113 Foundation.
This can be done by contributing commodities such as wheat, corn, soybeans, grain sorghum, etc. directly from your account at your local grain elevator or cooperative to a foundation account that is established at your elevator for the transaction. After the producer has delivered the grain to his/her elevator in their name, he/she simply tells the elevator that they wish to transfer a certain number of bushels of their grain to the USD#113 Foundation. He/she then notifies the foundation that they have transferred x amount of grain to the foundation and what fund/project they wish to support with the proceeds of the sale of the grain. Foundation board members then complete the transaction by notifying the elevator that the foundation wishes to sell the grain immediately and have the proceeds sent to it for deposit into the foundation account of the donor’s choice.
This type of transaction will minimize the producer’s income taxation. By transferring the grain directly, rather than selling it and in turn writing a check to the foundation, the producer has no reportable income on that portion of his/her production. Yet, the expenses to produce that grain continue to be deductible expenses. The foundation also gives the donor full credit for the proceeds received from the sale of the grain.
A producer should always consult with their tax advisor if they have questions regarding the appropriate commodity contribution or such a gift’s impact on their taxable income. Arrangements will also need to be made with the producer’s local cooperative or grain elevator to ensure proper documentation is provided regarding the grain transaction.
For specific questions and/or procedures regarding this gifting option, please contact the Foundation.