Peterson: Republicans trying to ‘browbeat’ co-ops
House Agriculture Committee ranking member Collin Peterson, D-Minn., has told the Red River Farm Network that the Republicans who wrote the tax law without the involvement of Democrats are now trying to “browbeat” co-ops into changing the Section 199a provision that gives farmers an incentive to sell to them rather than to private companies.
“Republicans passed the bill on a partisan basis and rushed it through,” Peterson, who is also a certified public accountant, told the Red River Farm Network, according to a newsletter released Feb. 12. “The attitude of many Democrats is ‘why should we bail them out?’ The Republicans screwed this up, and they didn’t want our help to write this bill.”
Peterson said the provision will be a big boon for farmers and cooperatives, the North Dakota-based radio network reported.
“What this means is no farmer will pay any tax. There is a 20 percent deduction (on your gross income) if you sell to a co-op,” Peterson said. “They’re trying to browbeat co-ops into giving this up because private companies figure they’ll lose business. What they’re forgetting is private companies got a tax reduction from 35 to 21 percent.”
Peterson said he has already heard from private companies in his district that are in the process of setting up a cooperative.