### Question
How does the law define eligible farmers' cooperative?


### Answer
Under *26 U.S.C. § 1042*, **eligible farmers' cooperative** is defined as:

> an organization to which part I of subchapter T applies and which is engaged in the marketing of agricultural or horticultural products

#### Citation:
  - *26 U.S.C. § 1042*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter O-Gain or Loss on Disposition of Property > PART III-COMMON NONTAXABLE EXCHANGES**

