WASHINGTON, D.C. (March 25, 2025) – This week, more than 50 farmer cooperative leaders from across the country traveled to the nation’s capital as part of the National Council of Farmer Cooperatives’ (NCFC) Washington fly-in. The delegation met with members of Congress and key policymakers to urge the permanent extension of the Section 199A tax provision, which is vital to ensuring a level playing field for farmer co-ops and producer-members.
“Farmer cooperatives play a crucial role in the economic success of rural communities, and Section 199A is essential to ensuring they can continue to compete and thrive,” said Chuck Conner, president and CEO of NCFC. “This week’s fly-in underscores the broad and deep support for maintaining this critical tax provision and highlights the real-world impact it has on America’s farmers and ranchers. I would also like to thank our colleagues at the National Milk Producers Federation who brought several dairy farmers to Washington to participate in the fly-in.”
The Section 199A deduction was originally enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA) to maintain the tax benefits that farmer co-ops and their producer-members had previously received under the Domestic Production Activities Deduction (Section 199). The provision helps co-ops return more value to their members, reinvest in rural communities, and maintain their competitive position in the agricultural supply chain.
During their meetings on Capitol Hill, co-op leaders emphasized that without a permanent extension, farmers and their cooperatives could face significant financial uncertainty. The potential expiration of Section 199A would put farmer co-ops at a disadvantage compared to their competitors.
“Section 199A is not just a tax issue—it’s a fairness issue,” Conner continued. “We appreciate the bipartisan support this provision has received, and we urge Congress to act swiftly to provide long-term certainty for co-ops and their members.”
About NCFC
Since 1929, the National Council of Farmer Cooperatives has been the voice of America’s farmer cooperatives, representing their interests in legislative and regulatory affairs. NCFC’s members include regional and national farmer cooperatives, which in turn consist of nearly 1,600 local farmer cooperatives across the country. These cooperatives handle, process, and market almost every type of agricultural commodity; furnish farm supplies; and provide credit and related financial services, including export financing. Earnings from these activities are returned to their farmer members on a patronage basis, helping improve their income from the marketplace. Farmer cooperatives also provide over 200,000 jobs, with a total payroll in excess of $12 billion, and contribute significantly to the economic well-being of rural America.
