Camp tax proposal provides wins, challenges for soybean farmers
In response to Feb. 25 introduction of a comprehensive tax reform proposal from House Ways and Means Chairman Dave Camp (R-Mich.), American Soybean Association President and Iowa farmer Ray Gaesser issued the following statement underscoring the impacts of multiple aspects of the proposed legislation:
“The farmers of the American Soybean Association commends Chairman Camp for his willingness to tackle the difficult task of tax reform. His proposal is both comprehensive and bold, and we would likely see many benefits from his proposed simplification and reform of the tax code.
“ASA strongly supports the measures proposed to allow farmers to continue utilizing cash-based accounting regardless of size. This accommodates the uncertain and potentially inconsistent nature of farm incomes and crop values across multiple years. Additionally, the proposal would make expensing deductions under Section 179 permanent. This provision enables farmers and other small businesses to deduct business-related purchases like equipment and infrastructure.
“ASA also strongly supports the measure’s proposed increase in revenues for investment in our waterways and highway transportation infrastructure. These investments are vital to maintaining the global competitiveness of American soybean farmers.
“We are significantly concerned, however, in the proposal’s elimination of the Biodiesel Tax Credit. Understanding that achieving comprehensive tax reform requires many compromises, ASA believes the Biodiesel Tax Credit is worthy of extension given the many benefits it provides, including support for jobs, economic development in rural communities, diversity in our energy sources, and reduction in greenhouse gas emissions, among others.”