Agricultural groups, including the National Grain and Feed Association and National Council of Farmer Cooperatives, did not find a fix for the Section 199A provision in time to include it in the recent Bipartisan Budget Act. However, NGFA President Randy Gordon says they’re working with several members of Congress and are close to a resolution.
Gordon says they’re looking to attach their proposal to another funding bill.
He says the unintended consequence of 199A is farmers receive a tax break when selling goods to cooperatives, but don’t get the same tax advantage when selling to private elevators or companies. He says without a change, there will be further concentration in the industry.
Gordon says they’re remedy calls for replicating the tax treatment given to cooperatives and their farmer patrons under Section 199 prior to enactment of 199A on December 22, 2017. He says that involves restoring 199 in a way that levels the competitive landscape.
