Statement by Chuck Conner, president & CEO of the National Council of Farmer Cooperatives, on the House Tax Reform Package
Contact: Justin Darisse, 202-879-0816, firstname.lastname@example.org
For Immediate Release
Washington, D.C. (November 2, 2017)—“By eliminating the Domestic Production Activities Deduction (DPAD), also known as Section 199, the tax reform proposal released today by House Ways & Means Chairman Kevin Brady would raise taxes on millions of farmers and depress economic activity throughout rural America. The value of the deduction for agriculture in a number of states is substantial: $136 million annually in California; $131 million in Minnesota; $80 million in South Dakota; $67 million in Iowa; and $60 million in Nebraska.
“Initial calculations using assumptions based on the Unified Framework on tax reform show that the tax burden for an individual farmer could increase by thousands of dollars each year under Section 199 repeal. In the coming days NCFC will continue to analyze the impact of farmers now that more details of the plan have been provided.
“Farmers have been told that tax reform will give them more money in their pockets to invest back in rural communities. The House tax reform package takes money away from farmers at a time when they are suffering from extremely low commodity prices. Rural America strongly supports a pro-growth tax policy, but the proposal to eliminate Section 199 will have the exact opposite effect.”
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.