A group of Republican lawmakers Wednesday sent a letter to Senate Majority Leader Mitch McConnell and House Speaker Paul 
Ryan calling for changes to Section 199A in the tax code. The group of more than 80 lawmakers says the changes will restore the competitive balance in the agricultural marketplace.
Led by Iowa Representative David Young, the group says the changes “are necessary to restore the equity in grain marketing and set co-ops and other independent businesses on a more level playing field.” The Tax Cuts and Jobs Act unintentionally created a tax advantage for producers who sell to cooperatives instead of private and independent businesses.
The letter says any remedy should retroactively restore the competitive marketplace for producers and replicate the benefits co-ops and farmers received under Section 199, before the enactment of Section 199A. The letter says the current Section 199A has resulted in a dramatic competitive imbalance impacting numerous agricultural value chain stakeholders including grain handlers, feed mills, seed companies, ag retailers, biofuels producers, banks, livestock marketers and dairy processors.
From the National Association of Farm Broadcasting News Service.