Work is
continuing in Washington to address the potential impact to U.S. grain
marketing that could arise from the Section 199A provision in the U.S. tax
code, with representatives of the U.S. grain industry, farm-state lawmakers and
more working to find a solution that will address concerns the provision could
impact farmer grain marketing decisions.
The
National Council of Farmer Cooperatives (NCFC) and National Grain and Feed
Association (NGFA) issued a joint statement on the situation, pointing out the
"aim of the Tax Cuts and Jobs Act was to spur economic growth across the
entire American economy, including in the agricultural sector. While the goal
was to preserve benefits in Section 199A for cooperatives and their patrons,
the unintended consequences of the current language disadvantage the
independent operators in the same industry."
The U.S.
tax code "should not pick winners and losers in the marketplace," the
statement said. "We applaud Congress for acknowledging and moving to
correct the disparity, and our expectation is that a solution is forthcoming.
USDA stands ready to assist in any way necessary."