Hoeven Amendment Would Prevent Tax Increases for Farmers, Co-ops


Washington, D.C. (December 1, 2017)—The National Council of Farmer Cooperatives today expressed strong support by an amendment filed today by Senator John Hoeven of North Dakota that would prevent a tax increase on farmers and their co-ops. The amendment to H.R. 1, the Tax Cuts and Jobs Act of 2017, would retain the “Domestic Production Activities Deduction” (DPAD), also known as Section 199, for agriculture. Joining as original cosponsors of the amendment are Senators Roy Blunt of Missouri, John Boozman of Arkansas, Tom Cotton of Arkansas, Joni Ernst of Iowa, Corey Gardner of Colorado, Jerry Moran of Kansas, Jim Risch of Idaho and Mike Rounds of South Dakota.

“We urge every senator who wants to avoid increasing taxes on farmers and their co-ops to support the amendment filed by Senator Hoeven,” said Chuck Conner, president and CEO of NCFC. “Section 199 has a proven track record of letting farmers keep more of the money that they earn, of creating jobs in local communities and boosting economies across rural America.”

“Without this amendment, farmers and their co-ops will face increased taxes at a time of continued low commodity prices, when they can afford such a financial hit the least,” said Conner. “Rural areas will see money that had been invested locally leave their communities, having an impact far beyond agriculture.”

In addition, NCFC and 193 other farm groups, cooperatives and agribusinesses today sent a letter to Senate leadership expressing their support for inclusion of the Hoeven amendment in the tax reform package.

About NCFC

Since 1929, NCFC has been the voice of America’s farmer cooperatives. Our members are regional and national farmer cooperatives, which are in turn composed of over 2,000 local farmer cooperatives across the country. NCFC members also include 26 state and regional councils of cooperatives. Farmer cooperatives allow individual farmers the ability to own and lead organizations that are essential for continued competitiveness in both the domestic and international markets.

America’s farmer-owned cooperatives provide a comprehensive array of services for their members. These diverse organizations handle, process and market virtually every type of agricultural commodity. They also provide farmers with access to infrastructure necessary to manufacture, distribute and sell a variety of farm inputs. Additionally, they provide credit and related financial services, including export financing.

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