Over 180 agricultural groups including the National Council of Farmer Cooperatives have written to the Speaker of the House and Minority leader expressing concern at the elimination of the Section 199 deduction in the tax reform measure. That deduction is passed down to individual farmers from cooperatives. NCFC President Chuck Connor says eliminating that will be costly for farmers and cause them to pay more in taxes.
He says the timing of repealing the Section 199 deduction comes at a bad time for producers who are going through a severe economic downturn.
Connor says the elimination also has a negative impact on Co-ops themselves.
Connor says repealing Section 199 will discourage investment by Cooperatives rather than encourage it. He says it’s time for farm state members of Congress to step up and push for restoration of that deduction.
