Farmers have been shouldering financial strains for the past several years. Whether it has been low commodity prices, trade wars, and now COVID-19. They have had more than their fair share of challenges, and the last thing they need now is a tax hike. That was the message from the National Council of Farmer Cooperatives (NCFC) last week.
Last Thursday the Executive Council of the NCFC appealed directly to the Treasury Department and the Office of Management and Budget (OMB) to scrap the proposed implementation of Section 199A(g) of the tax code. This proposal would eliminate a cooperatives ability to deduct business with non-members.
NCFC President & CEO Chuck Connor said they had reached an agreement with Congress in 2018, but the Treasury Department under the Trump Administration decided to implement the rule anyway.
With cooperatives being farmer-owned, this means any deductions and tax savings are passed on to the members. Connor says this proposal violates the will of Congress. However, Treasury Secretary Steven Mnuchin said he would work with Congress before any proposal is finalized.
The NCFC says that non-member business accounts for about 15% of the yearly business they conduct.
Connor is calling on the Trump Administration to follow through on the deal which was made with Congress.
More can be found on the NCFC?s website.
