By Jim Steadman
The U.S. cotton industry is pleased with passage of the Tax Cuts and Jobs Act (H.R. 1) – legislation it supported that can spur economic growth by lowering taxes and simplifying the code for America’s cotton producers and associated businesses.
In a letter to Senate Majority Leader Mitch McConnell (R-KY) and House Speaker Paul Ryan (R-WI), National Cotton Council (NCC) President/CEO Gary Adams thanked them for crafting and shepherding through Congress a bill that will allow farm families to further invest in their operations and preserve that farm for future generations by allowing full and immediate expensing of capital purchases and doubling the estate tax exemption.
“As you know, many family farms are structured as pass-through entities, and we appreciate the provisions to specifically provide tax relief for these entities, as well as a provision for cooperatives and their members given the loss of Section 199,” Adams stated in his letter. “The lowering of individual tax rates will further help alleviate the tax burden on farm families.”
Adams also noted that U.S. cotton producers continue to face low prices and high input costs while lacking an adequate farm bill safety net. As a result, a number of family cotton farms and other cotton businesses have been lost in recent years.
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