Almost 270 organizations representing farmers, ranchers, forest owners, agricultural cooperatives, and industry stakeholders have sent a letter to Congressional leaders, asking for a permanent extension of Section 199A in the Tax Cuts and Jobs Act. This provision has been crucial in keeping farmer cooperatives competitive with corporations by providing tax benefits. The letter highlights how Section 199A has supported rural America by fostering job creation, economic growth, and helping farmers navigate challenges like the pandemic, global instability, low commodity prices, and high inflation. The provision is set to expire at the end of 2025.
(Washington, DC) – Dear Speaker Johnson, Leader Thune, Leader Jeffries, and Leader Schumer:
The undersigned organizations represent our nation’s farmers, ranchers, forest owners, agricultural cooperatives, and industry stakeholders. We urge Congress to permanently extend the expiring provision of Section 199A in the Tax Cuts and Jobs Act of 2017.
Section 199A has been essential in keeping co-ops and their farmer members competitive with corporations that benefited from the permanently reduced corporate tax rate in the 2017 Act. Each year, farmer cooperatives pass roughly 95% of the benefit totaling over $2 billion directly back to farmers across rural America. The deduction has fueled job creation, economic growth, and rural investment. It has been instrumental in helping producers navigate unprecedented challenges, including a pandemic, global instability, prolonged periods of low commodity prices, and the highest inflation in a generation.
However, without congressional action, Section 199A will expire at the end of 2025, leaving individual farmers with significantly higher tax burdens—many facing double-digit increases. Farmers operate in one of the most unpredictable industries. Ensuring tax fairness is not just good policy, it is essential for the stability of rural America. Making Section 199A permanent will provide much-needed certainty as producers plan for future investments.
We strongly urge Congress to support America’s farm families by making permanent the Section 199A deduction. We stand ready as a resource and welcome the opportunity to discuss how co-ops strengthen American agriculture and rural communities. Thank you for your time and consideration.
CLICK HERE to view the list of national organizations that signed this letter.
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NAFB/Northern Ag Network
