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MADISON, WI – Wisconsin Cheese Makers Association is calling on federal lawmakers to modify language in Section 199A of the recently-approved tax reform policy to ensure a stable agribusiness economy.

Section 199A allows farmers to deduct 20 percent of their gross sales to cooperatives, but farmers selling to privately-held companies may only deduct 20 percent of their net income. This seemingly-inadvertent inequity has triggered concerns for all sectors of the dairy industry, but Congress failed to approve a fix in the last continuing budget resolution.

WCMA Executive Director John Umhoefer has released this statement on the matter:
 
“With members ranging from the nation’s largest dairy cooperatives to small, multi-generation independent cheesemakers, Wisconsin Cheese Makers Association is urging lawmakers to work quickly to address the inequity created by the new Section 199A in recent tax reform legislation.
 
“WCMA supports immediate Congressional action to restore or rebalance tax policy, providing stability for dairy producers and processors alike.”

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