The tax reform legislation being debated in the Senate eliminates Section 199, which is a concern to the nation’s cooperatives. Chuck Conner, President and CEO of the National Council of Farmer Cooperatives, says the Senate measure allows a 17.4-percent deduction for family farmers to replace Section 199, but that isn’t enough to help coops.

He says if the Senate passes the tax reform bill as is and eliminates Section 199 there will be no real tax reform achieved for cooperative members.

Conner says his group will press the Senate to restore the Section 199 deduction and will work with the Senate House conference committee for restoration if necessary.

Under Section 199, cooperatives pass the deduction on to their farmer members.