Young Leads Effort for Equity in Ag Markets

Press Release

Iowa Congressman David Young today delivered a letter, cosigned by 85 of his Republican colleagues, to Speaker Paul Ryan and Majority Leader Mitch McConnell calling for changes in Section 199A in the tax code which have created an unfair advantage for ag coops. Congressman Young worked closely with Arkansas Congressman Rick Crawford to bring together so many members in this effort.

"The federal government should not be picking winners and losers," said Congressman Young. "These changes will restore the equity in grain marketing which sets coops and other independent businesses on a level playing field."

"The 20 percent deduction for pass-through business income in Section 199A, which affects many farmers, delivered much needed tax relief for small businesses, farmers, ranchers, and producers across Iowa. I'm determined to find a solution which preserves this historic tax relief while also fixing the untended consequence affecting the ag economy," said Congressman Young.

An unintended consequence of the implementation of the Tax Cuts and Jobs Act created incentives for farmers to sell to cooperatives over other independent businesses. Congressman Young has been leading the effort in Congress to again put these cooperatives and businesses on a level playing field.

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