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Grassley reiterates need for 199A fix

Iowa Senator Chuck Grassley says it’s his understanding that an agreement has been reached to fix the Section 199A tax provision, which gives growers a tax incentive to sell to agricultural cooperatives.

“I think it’s reached the point where, if there isn’t a complete agreement, there’s enough agreement within the Congress that if we can do what we originally intended to do—maintaining the status quo for co-ops—we’re going to go ahead and do it, even if the co-ops aren’t completely satisfied with what we’re doing,” Grassley says.

Grassley says the 199 provision should go back to the way it was prior to passage of the tax reform bill late last year.

“In other words, leaving 199 for farmers and co-ops pretty much like it was, the way it’s been for 12 years, so it would not disadvantage private elevators like they have been disadvantaged since Christmas.”

Grassley predicts the 199A solution will be attached to the omnibus appropriations bill, to be considered in March.  But he’s unsure if the fix will be retroactive to the first of the year.

AUDIO: Grassley comments during conference call with ag reporters