A provision in the overhaul of the U.S. tax code had some unintended negative side effects on certain agribusinesses across the country. The provision gives producers a chance to cut down on their taxable income if they sell their commodities to agricultural cooperatives. It appears that farmer-owned cooperatives like CHS, Inc., came out ahead of other agribusiness giants like Cargill …
USDA Under Secretary Ibach on Section 199A Tax Code Fix
The U.S. Department of Agriculture’s (USDA) Under Secretary for Marketing and Regulatory Programs Greg Ibach issued the following statement regarding efforts to address concerns with recent changes to Section 199A of the federal tax code. Some agriculture stakeholders have raised questions about potential market effects on cooperatives and independent grain-related businesses. Ibach’s statement is as follows: “The aim of the …
Farmers Should Focus on Effective Tax Rate
Congress is just starting to consider changes to the federal tax code. As the process unfolds, AFBF economist Veronica Nigh says the effective tax rate is the most important factor for farmers when it comes to federal taxes. Nigh says there are three main factors that impact farmers within the federal tax code. Because of where the majority of …
Farmers Applaud Move to Reform Tax Code
The following may be attributed to American Farm Bureau Federation President Zippy Duvall: “Farm Bureau applauds Congress for its progress in reforming the tax code. This new tax plan moves us closer to a tax system that rewards the hard work and entrepreneurship of America’s farm and ranch families. “Today’s proposal includes expanded, immediate expensing while continuing the business interest …
House Agriculture Committee Examines Impacts of Tax Code on Agriculture Industry
The House Agriculture Committee held a hearing to examine how the tax code impacts agricultural producers. Members of the committee heard from a panel of Members of Congress—including Rep. Kristi Noem (SD-at large) and Rep. Lynn Jenkins (KS-2)—from the House Committee on Ways and Means, the committee charged with crafting our nation’s tax code. The Committee also heard from a diverse …