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The Tax Cuts and Jobs Act of 2017 included a tax provision named Section 199A that could affect the marketing of agriculture products. The 199A provision was added last minute to offset the loss of Dpad deductions for the cooperative system. 199A gives a 20% deduction on qualified patronage from a cooperative. Qualified patronage has been interpreted as payments from a cooperative for grain sold thru a cooperative. As it stands today, 199A gives farmers a 20% tax deduction on 100% of gross sales to a cooperative. The law is potentially a major market disruptor for all agriculture products. That was not the intent of language that was included by Senator Thune and Senator Hoeven. We have been told numerous times by various lobbying organizations that the language in Section 199A will be changed to correct the mistake. The consequences of maintaining the tax provision are material. There are numerous chances in the next 10 months to attach the “fix” to must-pass bills in the Senate. As we are being told today, the next bill to attach the “fix” of section 199A is March 23. In our opinion, March 23rd is too long for local farmers to wait for clarity on the tax bill. We also recognize there is always uncertainty in dealing with our government. Because of this uncertainty, we felt it was in the farmer’s best interest to have a choice for corn to be delivered to EEA. We have reached out to both Midwest Farmers Cooperative and Farmers Cooperative of Dorchester to help our corn suppliers and their patrons. All three parties agreed that it was in our local farmer’s best interest to offer a program to run corn bushels to be delivered directly to E Energy Adams thru one of the two cooperatives. EEA will have a two-tiered bid structure. One bid will be for bushels sold directly to EEA. We will also have a bid that is 2 cents per bushel below our posted bid to run these transactions thru the cooperative of the farmer’s choosing. The 2 cents covers the cost of the paperwork and accounting of the transaction for the cooperative and EEA. Either type of sale can be done thru EEA. If a farmer desires to have the bushels sold thru the cooperative and clearly communicates this desire with EEA, we will handle the transaction with the cooperative. The contract will come from the cooperative as will the payment after bushels are delivered under the cooperative’s name. It is that simple. We will only do cash corn contracts under this program. Price Later bushels cannot be applied to this program. Previously delivered bushels cannot be applied to this program. Previously established contracts cannot be changed to a cooperative contract either. We believe that the language of Section 199A will get fixed soon as the consequences to the farming industry are material. In the event the changes are too slow for your operation, we wanted to put this program in place to give you options. Please call with any questions. Thank you for your consideration. EEA will be offering text messaging, to sign up click on corn prices, in the middle of the page you will see member login, sign up here for text messages of our daily grain bids and any announcements we may have, for example free price later. EEA will offer Free Price Later for corn delivered January 8, 2018 or later. There will be no price later fees from date of delivery until September 30, 2018. If the corn is not sold by September 30, 2018, there will be a Minimum Price Later Fee of 20.0 cents per bushel in addition to the 5.5 cents per bushel per month charged on a daily basis. We reserve the right to end Free Price Later at any time. Thank you for your consideration.

E Energy Adams, LLC
Mission Statement:

Our goal is to use locally grown grains to produce an environmentally friendly fuel which will add value to the local economy while generating profits for both our investor owners and area grain and livestock producers.

E Energy Adams, LLC was organized as a limited liability company on March 25, 2005 for the purpose of developing, building, and operating a nameplate 50 million gallon dry mill ethanol plant in southeast Nebraska. Our public company received SEC clearance in May 2006. We are a locally owned company consisting of nearly 800 investor owners. Dirt excavation work began in July of ‘06, followed by Fagen, Inc. mobilizing on site for start of construction on August 14th, 2006. We successfully completed construction and began operations in October 2007.

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