News & Views: Around D.C. Spring

Section 199A - What is it?
Section 199A is a tax deduction that applies to proceeds from agricultural goods produced and/or marketed by farmer-owned cooperative, and is passed down to the individual cooperative members. This deduction benefits the economy through job creation, increased spending on agricultural production, and increased investment in rural communities. As a member of Riceland Foods, these deductions are passed through to you.

The Issue At Hand
The Section 199A tax deduction is set to expire in 2025. Our goal is for Congress to extend and for the President to sign into law a tax extension that includes Section 199A moving forward. Undoubtedly, the upcoming election will play a factor. Still, regardless of which Administration holds the White House in November, obtaining this extension will be a heavy lift.

We Need Your Help
You receive a substantial benefit from these deductions as a Riceland member. Letting Section 199A expire will raise taxes on farmer co-ops and their member-owners, impacting everyone involved. With tax season still on our minds, we encourage you to speak to your accountant about the benefit this deduction brings to your operation and the impact it would cause if this were to no longer exist.

These stories, when shared with our friends in Congress, can help highlight real-world examples of the farm-level impact. Section 199A creates and emphasize the importance of maintaining this benefit to farmer-owned cooperatives and its members.

Ben Noble
Executive Vice President, Chief Operating Officer

Adam Shea
Vice President, Sustainability and Government Affairs

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