Tenney: Restore equity in agriculture market
Congresswoman Claudia Tenney (NY-22) called for changes to Section 199A in the tax code to restore the competitive base in the agricultural market. Tenney joined 86 of her colleagues in sending a letter to House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell.
Senate provision 199A in the Tax Cuts and Jobs Act created a tax advantage for producers who sell to cooperatives instead of private businesses. Producers marketing decisions are skewed by a strong economic incentive to sell to cooperatives rather than private and independent businesses. This provision distorts the marketplace causing a reduction in competition and an increase in consolidation in the agricultural industry.
“Unintentionally, Section 199A of the Tax Cuts and Jobs Act created a competitive imbalance that impacts numerous people in the agricultural field,” said Tenney. “Agriculture is among upstate New York’s most important industries and a vital part of our region’s heritage. In the 22nd District, family farmers are the backbone of our communities and economy. I will continue to work to ensure that small agricultural businesses in the 22nd District can compete on a level playing field.”
Read the letter here.