The National Farmers Union is opposing the fix to the Section 199A tax deduction proposed for farmers who sell to cooperatives. The fix restores a portion of the original Section 199 deduction and repeals the 20-pecent gross sales language. NFU President Roger Johnson says while they like the idea of equalizing the deduction for those who sell to private elevators and coops, the fix gives an advantage to corporations.

He says the problem with the proposal brought forward by the National Council of Farmer Cooperatives and the National Grain and Feed Association is that small coops won’t be able to take advantage of the deduction, which is 20-percent of taxable income.

Johnson says under the proposed fix, the deduction is limited to a percentage of salaries paid to employees of a cooperative.

The fix would be retroactive to January 1 of 2018 and is in an amendment being considered in the omnibus spending bill which is set to be considered March 23.