Section 199A, a portion of the Trump tax bill that gives farmers financial incentive to sell through a cooperative, is one of the most hotly discussed issues facing agriculture policy. A change to remedy unintended consequences of the tax code could pass through Congress by the end of the month.
According to Pro Farmer’s Jim Wiesemeyer, the omnibus spending bill likely will be unveiled in the next two weeks, with a final vote before the March 23 deadline.
“It is expected to include a “technical correction” to the botched 199A tax provision, with lingering issues still undecided such as whether the changes will be retroactive to Jan. 1, 2018,” he says.
Independent grain dealers face a competitive disadvantage to agriculture cooperatives under the law, Wiesemeyer says.
“Sec. 199A that allows grain farmers to deduct up to 20% of their total sales to co-ops but not independent grain companies,” he explains.
On Tuesday, AgriTalk host Chip Flory said farmers don’t want 199A to be changed. During a chat with Wiesemeyer and Pro Farmer editor Brian Grete, Flory said some farmers are willing to let go of the safety net in order to keep 199A.
Listen to that full discussion below.