Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   
   
   

Agricultural News


NGFA Commends Congressional Leadership for Including Section 199A Fix in Omnibus Spending Bill

Thu, 22 Mar 2018 12:13:22 CDT

NGFA Commends Congressional Leadership for Including Section 199A Fix in Omnibus Spending Bill The National Grain and Feed Association (NGFA) today commended the bipartisan congressional leadership for reportedly including in the omnibus fiscal year 2018 appropriations bill stakeholder-driven provisions that would correct the unintended consequences of Section 199A of the Tax Cuts and Jobs Act of 2017.


The NGFA and National Council of Farmer Cooperatives had issued a joint statement on March 13 supporting prompt enactment of the legislative language, which was developed after months of collaboration and extensive analysis in an effort to replicate to the greatest extent possible the tax benefits accorded to farmer-owned cooperatives and their farmer-patrons under the previous Section 199 (also known as the Domestic Production Activities Deduction), while also restoring the competitive landscape of the marketplace as it existed in December 2017 so that the tax code does not provide an incentive for farmers to do business with a company solely because it is organized as a cooperative or private/independent firm.


Pending verification that the final language accurately reflects the concepts developed by NGFA and NCFC, NGFA said it will urge its prompt passage.


"There is a huge sense of urgency in getting this issue resolved, as producers continue to make marketing decisions, particularly given the welcome rally in corn and soybean prices in recent weeks," said NGFA President and Chief Executive Officer Randy Gordon. "Thousands of grain elevators and other agribusinesses, most of them small businesses that provide economic vitality to rural communities, will be making costly decisions on whether to reorganize their business to be able to compete or even whether to remain open for business during coming weeks. NGFA is confident Congress understands the calamity that will result unless the current Section 199A is corrected, and we will be working tirelessly until it is. The inclusion of these provisions in the omnibus bill is a huge step in the right direction to preserve competitive choices for producers when marketing their agricultural products."


The legislative provisions would amend Section 199A as it exists in current law, under which producers can deduct up to 20 percent of gross payments received on sales of agricultural cooperatives, without certain limitations based on income. Meanwhile, farmers selling to private/independent companies are restricted to deducting 20 percent of net business income, a considerably smaller deduction.


Gordon also noted the urgency and necessity of correcting the current Section 199A is compounded by the fact that the skewed tax benefits are not limited to agricultural cooperatives, but conceivably to any business or group of citizens that might want to form a cooperative. "The implications of this spreading well beyond agricultural businesses could be devastating to the generation of tax revenues to the federal treasury," he said.


The NGFA had noted previously that great care was taken by stakeholders to develop a concept that provides tax relief to farmers, as envisioned in the tax-reform law, while restoring to the maximum extent possible the competitive balance of the marketplace. NGFA's membership consists of an almost equal number of grain, feed, grain-processing and export businesses organized as cooperatives or private/independent companies.


Source - The National Grain and Feed Association




   

 

WebReadyTM Powered by WireReady® NSI

 


Top Agricultural News

  • Steer and Heifer Calves Trade 3.00 - 6.00 Higher on Tuesday at OKC West Livestock Auction  Tue, 18 Dec 2018 16:31:10 CST
  • Arysta's 'UNLOCK 5' Can Help You Optimize Your Crop's Yield Potential- Lynn Justesen Explains How  Tue, 18 Dec 2018 15:54:11 CST
  • Farm Bureau Leaders Zippy Duvall and Jeff Aiken Call Attention to New Clean Water Rule's Strengths  Tue, 18 Dec 2018 15:25:29 CST
  • John Deere Company to Launch New Start-Up Collaborator Program in Its Intelligent Solutions Group  Tue, 18 Dec 2018 15:19:56 CST
  • Updated Study by USMEF Quantifies Value Delivered to Corn Producers Through Red Meat Exports  Tue, 18 Dec 2018 15:10:57 CST
  • House Ag Chair Mike Conaway, AFBF President Zippy Duvall Embrace the EPA's "Clear Water Rule"  Tue, 18 Dec 2018 15:04:23 CST
  • University of Nebraska Veterinary Epidemiologist Brian Vander Ley on Vaccine Efficacy, Management  Tue, 18 Dec 2018 14:52:14 CST
  • Oklahoma Congressman Tom Cole Expresses His Support for Rural Americans in Op-Ed for McCarville  Tue, 18 Dec 2018 14:41:58 CST

  • More Headlines...

       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.