Washington, D.C. (July 3, 2025) — The National Council of Farmer Cooperatives (NCFC) today praised the final passage of the budget reconciliation bill by Congress, highlighting the permanent extension of Section 199A as a major victory for America’s farmers and cooperatives.
“With this bill now headed to the president’s desk, Congress has taken decisive action to prevent a massive tax increase on agriculture—an increase that would have exceeded more than $2 billion had Section 199A been allowed to expire,” said Chuck Conner, President and CEO of NCFC. “Making Section 199A permanent ensures that farmer-owned cooperatives and the producers who rely on them are treated fairly in the tax code.”
“This is a vital step forward in safeguarding the cooperative model—a model that keeps more value in rural communities, strengthens the family farm, and supports a resilient agricultural economy,” Conner said. “Congress has demonstrated that it understands what’s at stake for rural America.”
NCFC also recognized Congress for extending other key tax provisions in the bill, including Section 179 expensing and the clean fuel production credit under Section 45Z. These measures provide co-ops and producers with long-term incentives to invest in innovation, infrastructure, and sustainability.
“As we await the president’s signature, we urge the administration to move quickly to enact this important legislation,” said Conner. “America’s farmers and co-ops need the certainty and support this bill delivers.”
