Washington, D.C. (March 3, 2020)—“NCFC and our members appreciate Treasury Secretary Steve Mnuchin’s commitment to members of the House Ways and Means Committee to work with the committee and the Senate Finance Committee to ensure that regulations implementing Section 199A(g) of the tax code follow Congress’s explicit intent in fixing the grain glitch. Importantly, his statement that ‘our job is to implement the law, our job is not to make policy’ is especially notable.
“It is clear that Congress intended Section 199A(g) to recreate the way that the Section 199 deduction worked under the old tax code. The current proposal from the Internal Revenue Service (IRS) fails to meet that standard in several important areas.
“Thirteen members of the House Ways and Means Committee, the chair and ranking member of the House Agriculture Committee, and many other members of Congress have formally asked the Secretary to ensure that the final regulations reflect the law. We trust that once he has had a chance to review the issue in its entirety and consult with those who wrote the law, Secretary Mnuchin will direct the IRS to implement the law as written and protect America’s farmers and ranchers from a punishing tax increase.”
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 nearly 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.