Appropriations Bill Agreed Upon by Congress, Contains Section 199A “Fix”

DanEconomy, Funding, Industry News Release

The Hagstrom Report says congressional leaders have agreed on an omnibus appropriations bill to fund the government through September 30. It passed a House vote, 256-167, and is expected to pass in the Senate before the weekend. There may still appropriationsneed to be a short-term continuing resolution if any senators object to the bill. The bill does contain a fix to Section 199A of the tax law that currently gives farmers an incentive to sell to cooperatives rather than privately owned companies.

The National Grain and Feed Association was happy with what they saw. NGFA President and CEO Randy Gordon says there is a huge sense of urgency in getting this issue fixed as producers continue to make marketing decisions, especially with the recent rally in corn and soybean prices.

Ag Secretary Sonny Perdue says the spending plan contains a number of USDA priorities. “Fixing the so-called ‘grain glitch’ problem is simply an issue of fairness and we should not be picking winners and losers through the federal tax code by favoring one side over another,” Perdue says.

From the National Association of Farm Broadcasting News Service.