WASHINGTON — A legislative “fix” to the tax advantage for agricultural producers who sell to cooperatives instead of private entities unintentionally created in the Tax Cuts and Jobs Act passed last December was not ready for inclusion in the spending bill that Congress sent to President Donald Trump on Feb. 9.
|Randy Gordon, president and c.e.o. of the N.G.F.A.|
“The National Grain and Feed Association (N.G.F.A.) is disappointed that a solution to correct the unintended consequences of Section 199A could not be completed in time to include in the continuing budget resolution being considered by Congress this week,” said Randy Gordon, president and chief executive officer of the N.G.F.A. “Considerable progress has been made during the last several weeks of intensive effort toward reaching an equitable solution. The two fundamental goals of these efforts remain to replicate the tax treatment accorded to cooperatives and their farmer-patrons under previous Section 199 of the tax code, and to do so in a way that restores the competitive landscape of the marketplace that existed prior to the enactment of Section 199A on Dec. 22, 2017.“N.G.F.A. remains committed to achieving such an outcome expeditiously. We are gratified that the many members of Congress with whom we and other stakeholders are engaged on this issue are equally committed to enacting an equitable solution as part of the next available legislative vehicle. All concerned are very cognizant of the adverse and unforeseen disruptions Section 199A already is having in the marketplace and the perverse impacts it is having on companies’ business decisions. As an organization that represents both farmer-owned cooperative and independent/privately organized companies, N.G.F.A. remains committed to working intensely and diligently with Congress and other stakeholders to resolve this issue promptly.”