All American Co-op Patron,
Since its introduction in 2004, the Domestic Production Activities Deduction (DPAD), also known as Section 199, has been a vital pass-through for All American Co-op, it’s patrons, and the entire agricultural community. This year All American Co-op is expected to pass through approximately $2 million to eligible patrons. And nationwide, the deduction returns an estimated $2 billion each year to farmers and their rural communities.
Unfortunately, this deduction is now at risk as the recently introduced House and Senate Tax Reform Bills would eliminate the Section 199 deduction. While All American Co-op supports tax reform, we are deeply concerned about the potential elimination of this valuable tax deduction.
Supporters of the plan to repeal the deduction say that larger business tax cuts and lower pass-through tax rates (profits of a business passed through to the business owners) will more than make up for the loss of Section 199. We are thoroughly reviewing the House bill language but do not believe that the values of the lower corporate, individual and pass through rates or the elimination of the estate tax would offset the value of this deduction for the nation’s co-ops and the majority of their farmer-owners.
While each of your businesses are very different, we remain concerned that the loss of the Section 199 Domestic Production Activities Deduction will have a net negative impact on the majority of patrons. Help us protect this deduction that benefits cooperatives, their farmer-patrons and the larger rural economy by contacting your members of Congress today and delivering these simple messages:
• Ending the DPAD for agriculture will raises taxes for farmers and ranchers in our state.
• This provision has worked as intended and has helped to create jobs and boost the rural economy.
• We need tax reform that puts more money into rural communities, not less.
We’ve made it easy for you to contact your member of Congress through the Land O Lakes Legislative Action Center.
Follow these three easy steps below:
Visit the Land O’Lakes Legislative Action Center (http://capwiz.com/landolakesinc/home/)
Enter Your Zip Code
Choose the “Support Sec 199” link
Add your name and sender information in sections 1 and 2
Click “Send Message”
Please join with me and other All American Co-op patrons and employees, and the collective voice of agriculture, to ask Congress to protect Section 199 and support tax reform that benefits farmers and the agricultural community.