Riceland Foods Participates in National Council of Farmer Cooperatives D.C. Fly-In

Jason Brancel, President and CEO, and Kevin McGilton, Chief of Staff / VP of Government Affairs, joined co-op management staff and board of directors from across the nation this week on Capitol Hill to hear updates on policy and advocate for cooperative priorities.

Farm Bill

House and Senate Agriculture Committee staff gave a quick update and attendees were allowed to ask questions. See the major take aways below:

• House staff expect a draft by the Fall which could lead to a vote later in 2023.
• A short extension into 2024 may be needed if they are close to a final agreement in December 2023 or a 1-year extension would be needed if both sides a far apart.
• Finding money to raise references prices is the priority.
• Boozman staff state reference price increases must be “meaningful increases” and commodity safety net provisions will not be tied to conservation practices.
• There will be no new money. Raising reference prices is expensive and the money will come from another program or other funds that the Ag Committee has purview.
• Funds may come from unspent Covid funds or Nutrition Title / SNAP.
• Stabenow’s staff said the $20 billion of conservation funds in the recent IRA Act will not be used to pay for changes in the Commodity Title.
• No major changes to conservation or commodity programs. Just tweaks.

Section 199A

Section 199A is a section of the tax code that cooperatives use to generate tax deductions that can be used at the enterprise level or passed through to the membership. In prior years, this benefit has generated millions of dollars annually in tax deductions for Riceland members.

Unfortunately, this tax deduction is set to expire on Dec. 31, 2025. Cooperative leaders took the opportunity to meet with staff from the House Ways & Means Committee to continue advocacy efforts in support of the tax deduction

These meetings are an example of the power of a cooperative coalition on topics that matter to all cooperatives of all types, and Riceland will have a seat at the table through both Kevin (Chair of NCFC Government Relations Committee) and Jason (NCFC Executive Council / Board of Directors).

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