• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

National Grain and Feed Association

Transforming America's Harvest

  • Sign In
  • News
    • NGFA Blog
    • Newsletter Archive (members only)
    • Press Releases
    • Podcast
  • Issues
    • Feed
    • Safety
    • Trade
    • Farm Bill
    • Transportation
    • Barge Digital Transformation (BDT) Project
  • Events
    • Calendar of Events
    • Convention
    • Country Elevator Conference & Trade Show
    • CONVEY
    • FSMA Courses
    • Trade Rules Seminar
  • Training
  • Advocacy
  • Arbitration
    • Arbitration Overview
    • Decisions
    • File a Complaint
    • Volunteer
  • Trade Rules
    • Trade Rules Overview
    • Trade Rules Committee
    • Order Rules Booklet
  • About
    • Officers and Staff
    • Committees
    • Strategic Alliances
    • State/Regional Affiliate Associations
  • Membership
    • Join the NGFA
    • Benefits & Services
    • Get Involved
    • Member Companies
    • Membership Directory (members only)
    • Committee Apprentice Program
  • Foundation

03.13.18 Agriculture Policy, Press Releases

NCFC/NGFA Joint Statement on Legislation to Resolve Section 199A of the Tax Cuts and Jobs Act

WASHINGTON, D.C., and ARLINGTON, Va., March 13, 2018 – The National Council of Farmer Cooperatives (NCFC) and National Grain and Feed Association (NGFA) today issued a joint statement regarding a stakeholder-driven proposal to resolve the unintended consequences of Section 199A of the Tax Cuts and Jobs Act.

The two organizations said they support inclusion of the legislation to amend Section 199A as part of the fiscal year 2018 Omnibus appropriations bill this month, and believe it warrants bipartisan support.  The legislation, if approved by Congress, would be retroactive to the start of the 2018 tax year on Jan. 1.

NCFC and NGFA expressed appreciation to House Ways and Means Committee Chairman Kevin Brady, R-Texas, Senate Finance Committee Chairman Orrin Hatch, R-Utah, and the Congressional Joint Committee on Taxation for developing legislative language over the last week that is designed to achieve the two fundamental objectives of stakeholders:

  • First, 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 (DPAD), of the tax code, as it existed prior to its repeal in the Tax Cuts and Jobs Act enacted on Dec. 23, 2017; and
  • Second, to restore 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 purely because it is organized as a cooperative or private/independent firm.

“Throughout the tax reform process that began last year, NCFC has consistently called on Congress to retain DPAD for famer co-ops and their member-owners and this legislation largely meets that goal. The old Section 199 had a proven track record of letting farmers keep more of their hard-earned money. We expect these provisions to do the same,” said Chuck Conner, president and CEO of NCFC. “By combining the individual-level business deductions that farmers can claim and the pass-through from their co-ops, farmers selling to cooperatives have the opportunity to see benefits in excess of the 20 percent 199A pass-through deduction.”

“We would also like to recognize the tireless efforts of Sens. John Thune of South Dakota and John Hoeven of North Dakota to ensure fair treatment for farmer co-ops and their member-owners,” Conner continued. “They have brought together both sides and fostered an atmosphere that has made today’s proposal possible.”

NGFA President and CEO Randy Gordon said 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 in the marketplace.  NGFA noted its members consist of an almost equal number of grain, feed and grain-processing businesses organized as cooperatives and private/independents.

“Given the complexities of the issue and the different types and sizes of businesses, no legislation will ever be perfect for every income or business situation,” Gordon said.  “But the stakeholder concepts on which this legislative language is based have been analyzed and reanalyzed in excruciating detail by tax experts representing both cooperative and private/independent businesses, as well as Congressional tax staff experts. We believe the solution merits enactment so that competitive choices remain available to agricultural producers and the marketplace – not the tax code – determines with whom they do business.  We appreciate the commitment of members of Congress, Republicans and Democrats alike, to get it fixed.” 

NGFA joined in thanking Sens. Thun and Hoeven, as well as Sens. Chuck Grassley, R-Iowa, and Pat Roberts, R-Kan., for working with stakeholders, as well as several Democratic senators who have expressed an interest in seeing the issue resolved.

NCFC and NGFA said they will remain engaged on this critical issue until a stakeholder-led solution is enacted by Congress.

-30-

sidebar

Blog Sidebar

Topics

  • Arbitration Decision (692)
    • Corn (6)
    • Rail (3)
    • Soybeans (2)
    • Truck (1)
    • Wheat (3)
  • Issue Advisory (18)
  • Newsletter (1,807)
  • Press Releases (269)
  • Subject-focused News (1,735)
    • Agriculture Policy (258)
    • Arbitration (35)
    • Biotechnology (104)
    • Education and Training (40)
    • Event News (217)
    • Feed (291)
    • Foundation (9)
    • NGFA (91)
    • Risk Management (131)
    • Safety, Health & Environment (196)
    • Trade (250)
    • Transportation (312)
  • Uncategorized (23)

Footer

National Grain and Feed Association

TwitterYoutubeFacebookLinkedin

Contact Us

ngfa@ngfa.org
1400 Crystal Drive, Suite 260
Arlington, VA 22202
202.289.0873

Member Login

Have an account? → Log in 
Need an account? → Register
Lost your account? → Reset

Manage Your Account

Copyright ©  2023 NGFA | All Rights Reserved
  • Sign in

Forgot your password?

Lost your password? Please enter your email address. You will receive mail with link to set new password.

Back to login

Lacy Holleman
Manager of Legal Affairs and Arbitration

lholleman@ngfa.org

Lacy provides staff support for one of NGFA’s premier member services – its more than century old system of industry trade rules and arbitration that facilitates the efficient marketing of grains, oilseeds and their derived products. She also works on contracting, legal and other related matters.

An Arkansas native, Lacy received her undergraduate degree with a double major in history and Russian studies from the University of Tulsa (Okla.) and her law degree from Wake Forest University in Winston-Salem, N.C. Prior to joining NGFA’s staff in November 2020, she managed a local business at the Pentagon and completed mediation training required by the North Carolina Supreme Court for those seeking to serve as mediators for settlement conferences and other settlement procedures in North Carolina Superior Court civil actions. She also has worked as an assistant for a law firm in her native state.