Peterson works on farm bill, sees Section 199a fix unlikely
Grassley South Dakota Farmers Union disagree on Section 199A
Senate Judiciary Committee Chairman Charles Grassley, R-Iowa, told reporters this week that Section 199A of the new tax law, which unintentionally gives farmers incentives to sell their products to co-ops rather than private grain companies, has to be fixed, but the South Dakota Farmers Union says it should not be changed, DTN/The Progressive Farmer reported.
House Agriculture Committee ranking member Collin Peterson, D-Minn., has told his constituents that he is trying to work with House Agriculture Committee Chairman Michael Conaway, R-Texas, to pass a farm bill this year.
But Peterson said he thinks it’s unlikely that Congress will make a change to Section 199a of the tax bill, which gives farmers an incentive to sell to cooperatives rather than privately held grain elevators.
Peterson recently told The Daily Journal, a Fergus Falls, Minn., newspaper, “That’s what I’m most involved with … We’re right in the middle of doing it right now. Between now and September, that’s about all I’m going to be working on.”
He told constituents in Ada, Minn., that he has to have fixes to the cotton and dairy programs and an expansion of the Conservation Reserve Program, which pays farmers to idle land for conservation purposes, the Red River Farm Network reported.
Asked about a technical correction to the tax law that private grain companies want, Peterson said, “We would hope, but I wouldn’t bet on it. This shouldn’t have happened in the first place, so I’m skeptical. If it doesn’t get fixed, the likely outcome is you’ll have a lot of private companies becoming co-ops. It’s too much of an advantage for farmers to sell to a co-op. They’re going to have to.”