The Senate Tax Reform Bill, passed over the weekend, is getting mixed reaction by agricultural interests. Several of the provisions in the bill are key points for which farmers have been asking. The American Farm Bureau Federation had a mostly favorable reaction to the legislation. “We applaud the Senate’s commitment to key tax provisions farm and ranch businesses depend on, such as immediate expensing, business interest deduction, and cash accounting,” said Farm Bureau Federation President Zippy Duvall. “While we also had hoped to see the estate tax finally put to death, increasing the exemption should bring relief for many farm and ranch families looking to preserve their agricultural legacy.” Duvall added that Farm Bureau looks forward to the Senate and House reconciling the differences between their respective versions in conference to achieve a final tax reform package that addresses the needs and concerns of farmers and ranchers and boosts economic growth in rural America.
The National Council of Farmer Co-ops expressed disappointment over the Senate’s failure to extend the 199 deduction. “It is deeply unfortunate that the Senate failed to include continuation of the Domestic Production Activities Deduction (DPAD), also known as the Section 199 deduction, for agriculture in their tax reform bill,” said NCFC president Chuck Conner. “This action creates tremendous uncertainty as farmers plan for the coming year, and they will need to quickly assess the impact of this legislation with their accountants and lenders.” In a statement released on Saturday, Conner added, “As the House and Senate work to reconcile their tax bills in the coming days, we look forward to working with Senators Roberts and Thune, as well as other supporters on the conference committee, to improve on the Senate provisions to ensure to ensure that the final bill does not raises taxes on farmers and their co-ops.”
“Farm Bureau urged lawmakers on both sides of the aisle to support the bill. We now look to Congressional leaders to reconcile differences between the House and Senate passed version and maintain key provisions critical to Michigan agriculture,” said Michigan Farm Bureau’s National Legislative Counsel John Kran. “Tax Reform has been a top priority for Michigan Farm Bureau for decades. We’re glad to see we are one step closer to it becoming a reality.”