Looking At A Fix To Ag Issues In Tax Reform

It was an unintended consequence of the tax reform law passed late last year,  but farmers enjoy a nice tax break if they sell to cooperatives rather than through commercial businesses.  This has stirred up efforts by lawmakers, like Senators Thune and Hovand, to correct the problem.

"The Senator's office tells us they are very, very close to a deal," said Ag Secretary Sonny Perdue at the Commodities Classic in Anaheim, California.  He said co-ops, farmers and others should not operate like this.

"I would advise co-ops and members of co-ops not to spike the ball on this thing because, frankly, if this provision is laid in there, every farmer in America would be a member of a former co-op of one or two or three members. And I think that the American public would figure that out pretty quickly, as well as CBO would figure that out pretty quickly what that would do to the tax dollars and the revenue income."

Perdue added that a fix is in the making.  And from what he's heard, when the fix is done, Perdue believes it will be retroactive to the first of the year.

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