Congressional appropriators revealed an omnibus appropriations bill that includes significant and harmful modifications to an important tax break for farmers and agricultural cooperatives. The break is known as Section 199A, was included in last year’s tax overhaul, as a means of leveling the playing field between ag cooperatives and corporations who received a sizeable tax break in the legislation.
The National Farmers Union opposed these changes to the tax provision. In responding to the omnibus language, NFU President Roger Johnson says, “We are deeply disappointed that Congress included harmful modifications to Section 199A in this must-pass legislation. Reverting back to Section 199, in light of double-digit corporate tax relief, leaves farmers and their cooperatives worse off than prior to the passage of the Tax Reform and Jobs Act.” He added that there were several bipartisan compromises to remedy challenges associated with 199A that ensured farmers and cooperatives wouldn’t be worse off. Johnson says, “Those compromises were disregarded in favor of corporate interests.”
From the National Association of Farm Broadcasting News Service.