NMPF joined a coalition of more than 100 farmer and cooperative organizations this week in urging lawmakers to permanently extend the expiring Section 199A provision contained in the Tax Cuts and Jobs Act of 2017. The Section 199A deduction is one of several eight-year-old tax breaks that will expire at the end of this year without congressional action.
The joint letter to House and Senate leaders, signed by NMPF and most of its members, noted that “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.”
NMPF and several of its members also joined a Section 199A fly-in on Tuesday and Wednesday spearheaded by the National Council of Farmer Cooperatives. Work on Section 199A continues as part of the overall discussion in the House and Senate on the tax and budget reconciliation bill, which is likely to continue through the spring and summer.
Senate to Hold Hearing Next Week on Whole Milk Legislation
The role of real milk – in multiple varieties – in promoting public health will be the subject of a Senate hearing next week. Next Tuesday at 10:00 AM, the Senate Agriculture, Nutrition, and Forestry Committee will hold a legislative hearing on the Whole Milk for Healthy Kids Act, legislation we have worked with sponsors in the House and Senate to pass so that schools have more options to serve whole as well as 2% milk to their students. The witness list encompasses representatives from the school nutrition and medical community.
Reciprocal Tariff Increases Coming Next Week?
We are closely watching the extent to which the Trump Administration raises tariffs next week on key trading partners, including Canada, Mexico, China, and many European nations. This past week, Treasury Secretary Scott Bessent indicated that these initial “reciprocal” tariffs could focus on 15 countries with persistent trade deficits with the U.S. The idea is that the tariffs will be based on the trade barriers other countries use to restrict the sales of U.S. goods. In addition, this past Wednesday, the president announced a 25% tariff rate on imported autos.
President Trump indicated earlier this week that the reciprocal tariffs may be more lenient than some expect. As always, I believe we must take a wait and see approach to how this will affect U.S. dairy exports, as we see how other nations negotiate rates or sector-specific exemptions.
Be the first to comment