in the KNOW

October 27, 2017


Urge Congress to Protect a Key Tax Deduction During Consideration of the Tax Reform Proposal

As Congress considers tax reform, it is crucial that members of farmer-owned cooperatives weigh-in regarding the proposed elimination of the Section 199 deduction, which would increase taxes on farmers. Since cooperatives are owned and controlled by farmers and producers, they use the Section 199 deduction differently than other businesses and pass along the vast majority of the benefit to the farmers who own the business.

Rather than elimination, the Section 199 deduction must be protected as it returns close to $2 billion each year to rural areas in the United States with $175 million of the total benefitting those based in California.

With farmers experiencing many challenges, this is certainly not the time for Congress to take any action that would raise taxes on those who produce our food.

Though Ag Council primarily focuses its advocacy work on state policy issues, the eradication of the Section 199 federal tax deduction would have a serious impact on many of our members, so we encourage you to weigh-in via the Learn More link below.

DO NOT DELAY – Your voice is critical at this time. With Congress moving quickly on tax reform, please click HERE to easily send a letter to your representatives in the U.S. Senate and House urging them to oppose the elimination of the Section 199 deduction.