Press Release: Advocating for Rural America’s Agricultural Cooperatives
Across rural America, agricultural cooperatives are vital to both the agricultural sector and local economies. Dan Dix, CEO of NEW Cooperative Inc. based in Fort Dodge, highlighted their importance in a recent statement. Founded in 1973, NEW Cooperative has expanded from two locations to over 80 across Iowa, serving more than 12,000 farmer-members.
Cooperatives like NEW embody collaboration and support, providing essential services such as grain marketing, feed distribution, and technological solutions. Amidst rising costs and economic uncertainties, these cooperatives help farmers maintain competitiveness and ensure a stable food supply.
A key tax provision, Section 199A, allows cooperatives to reinvest in their communities, but this stabilizing measure is under threat. With the provision set to expire this year, Iowa’s farmers could face significant tax increases, worsening the challenges posed by inflation and high input costs.
Dix expressed gratitude to Iowa’s congressional delegation for advocating a permanent extension of Section 199A, emphasizing its role in sustaining rural jobs and communities. He urged lawmakers to support policies that enable cooperatives to continue serving farmers, reinforcing the backbone of American agriculture.
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