Iowa Senator Chuck Grassley says Congress may be close to replacing Section 199A language in the new tax law. Elected officials say that has given advantages to farmers who sell their grain to cooperatives rather than private companies. South Dakota Farmers Union President Doug Sombke doesn’t think they’re close to a fix at all.

Grassley has suggested going back the previous deduction that was in place prior to the tax legislation being approved. Sombke says that won’t solve the problem.

Some Senators and Congressman say that the tax law brought unintended consequences when it replaced Section 199 with Section 199 A.
Sombke says trying to solve that by going back to the original deduction will just hurt farmers in the long run.

Sombke says the easiest fix to the Section 199A problem is if private companies feel they’re at a disadvantage with cooperatives over the deduction, they should just turn themselves into a CO-OP. He says cooperatives are nothing more than a different form of a corporation.