- On January 23, 2018
After Congress’ recent passage of the tax reform/tax cut legislation, it became obvious that an unintended change to the tax code would have had impacts on grower sales to cooperatives versus company operations. ASTA members have raised concerns about the potential impact of this change to Sec. 199 deductions for their seed production contracts should the new language not be revised.
When this issue was brought to ASTA’s attention, we immediately contacted friends at the National Council of Farmer Cooperatives and National Grain & Feed Association who are leading the effort to resolve this situation. Last week, several organizations met with the key Senate supporters – Senators Roberts, Thune and Hoeven – to discuss possible solutions. The Senators are committed to finding a resolution to this issue. A joint statement from the National Grain and Feed Association and the National Council of Farmer Cooperatives outlining their intention to work together is available HERE. USDA’s statement on the issue can be found HERE.
ASTA has expressed the concerns raised by the seed industry, and are ready to assist in finding a solution to this situation. Once a workable compromise has been reached, ASTA will ask members to reach out to members of Congress to ensure that the language is passed and signed into law.