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Cheesemakers push for rapid fix to 199A tax law issue

A spokesperson for the Wisconsin Cheesemakers Association says the recent tax law changes affecting Section 199A deductions for cooperatives needs rapid repair.  Rebekah Sweeney tells Brownfield, “This change has created instability.  Folks are trying to figure out what their business plan is moving forward.”

Sweeney says the new tax code allows farmers to deduct 20 percent of their gross sales to cooperatives, but only deduct 20 percent of their net income when selling to private companies, creating inequities across ag including the cheese industry.  “Within our association, you know, we have some very large cooperative members and we also have large corporate and small independent cheese makers.  Everyone agrees there needs to be a solution.  There needs to be a fix.”

Sweeney tells Brownfield they are hoping their members and the Wisconsin Cheesemakers Association, in general, will urge lawmakers to work quickly to address the tax issue before the next continuing resolution or budget bill.

Ag Secretary Sonny Perdue testified earlier this month in favor of changing the tax guidelines so producers are not penalized for selling to non-cooperative buyers.