NCFC: Tax Reform Should Result In Tax Relief

The National Council of Farmer Cooperatives says the tax reform package being unveiled soon in DC is expected to eliminate a deduction that will increase taxes on farmers.  Section 199, otherwise known as the Domestic Production Activities Deduction, was put into place in 2004 to encourage businesses to boost domestic production.

Chuck Conner, National Council of Farmer Cooperatives CEO, said farmer cooperatives pass nearly $2 billion nationally directly back to farmers across rural America.  Farmers can then deduct their share of the Section 199 benefit on their farms’ tax forms.

“Many are saying the 199 deduction will go away and no longer be available to anyone including farmer coops and our farmer members and our goal at this point is to make sure that legislators understand the economic impact that does bring on the farm.”

Conner added farmers should remind lawmakers that the goal of tax reform is tax relief.

“Reach out to their legislators and remind them that they are in office basically under the premise that tax reform meant tax relief for not only farmers, but really for all business out there.  And that is not the path that they are on and farmers expect them to get back on that path.”

Conner says farmer co-ops support tax reform, but not the elimination of the Section 199 deduction for agriculture.  To learn more, visit NCFC's Website.

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