A large number of organizations representing farmers, ranchers, forest owners, agricultural cooperatives, and industry stakeholders sent a letter to Congressional leaders regarding Section 199A in the Tax Cuts and Jobs Act. “
We urge Congress to permanently extend the expiring 199A provision within the Tax Cuts and Jobs Act of 2017,” they said.
Section 199A has been essential in keeping co-ops and their farmer members competitive with corporations that have benefited from the permanently reduced corporate tax rate in the 2017 Act.
Each year, farmer cooperatives pass roughly 95% of the benefits, totaling over $2 billion, directly back to farmers across rural America.
The deduction has fueled job creation, economic growth, and rural investment.
“However, without congressional action, Section 199A will expire at the end of 2025, leaving farmers with significantly higher tax burdens, including many who would face double-digit increases,” the letter adds.
“Support families by making Section 199A permanent.”
