The Tax Cuts and Jobs Act of 2017 and Section 199A
Considerable concern has been raised in the marketplace about how the new Section 199A – included during the waning hours of congressional consideration of the Tax Cuts and Jobs Act of 2017 – is influencing producer marketing decisions. As an organization whose members consist of both farmer-owned cooperatives and independently organized businesses, the NGFA is dedicated to finding a solution to the disparate and unintended consequences of the tax treatment provided to producers selling agricultural products to farmer-owned cooperatives under Section 199A of the law enacted on Dec. 22, 2017.
As currently written, Section 199A language could significantly skew producers’ decisions on which type of business entity with which to market their commodities. The provision unintentionally created a tax advantage for producers who sell to cooperatives instead of private and independent firms. NGFA’s objective is to arrive at an equitable solution that restores the competitive landscape in the marketplace that existed prior to enactment of Section 199A to preserve a competitive marketplace and marketing choices for agricultural producers.
Shareable documents on Section 199A
NGFA news updates on Section 199A
NGFA continues to press for expeditious, equitable solution to Section 199A tax issue – By Randy Gordon, NGFA President – Jan. 31, 2018
Discussions progress on finding Section 199A tax solution – By Randy Gordon, NGFA President – Jan. 17, 2018
Statement of Chuck Conner, president & CEO, National Council of Farmer Cooperatives (NCFC) and Randy Gordon, president & CEO, National Grain and Feed Association (NGFA), on Section 199A Tax Provisions – Jan. 12, 2018
Confidential NGFA Member Alert: Section 199A Provision of Tax Cuts and Jobs Act of 2017 – By Randy Gordon, NGFA President – Jan. 12, 2018