Farm co-ops deserve the same kind of tax relief as corporate ag titans | Opinon

Across rural America, where fields stretch wide and small towns knit our communities together, agricultural cooperatives serve as cornerstones of economic strength and resilience.

As CEO of Alliance Ag and Grain, I’ve seen every day how our co-ops help keep southern Kansas farming communities running strong day in and day out.

From the outside, cooperatives may resemble any other business.

But they’re far more than that. And today, as America’s farmers take on the challenge of feeding a growing world, it’s never been more critical to understand and support the local-first, member-owned co-op model that puts our farmers at the heart of everything we do.

At their core, agricultural cooperatives reflect a spirit of mutual support and shared success.

At Alliance Ag and Grain, we serve a wide swath of southern Kansas through nearly 30 locations, delivering essential services in grain, agronomy, feed, and energy.

Backed by a team of dedicated professionals, we help our farmer-members stay competitive in an increasingly global and volatile agricultural marketplace.

Our strength comes from collaboration — by pooling resources, sharing risk, and working together, we help ensure the long-term success of our members and the communities we all call home.

We operate not for Wall Street investors, but for the farmers who grow our food, support our rural economies, and build a better future for the next generation.

A key part of that strength has come from a tax provision known as Section 199A, which has allowed cooperatives like Alliance Ag and Grain to return value to our farmer-members while reinvesting in the rural communities we serve.

This provision supports the cooperative structure — where value stays local, and profits go back to the producers who earn them.

But right now, that provision is at risk.

While the corporate tax rate was permanently reduced in 2017, the co-op-specific rules under Section 199A are set to expire this year.

That would mean a significant tax hike for farm families already navigating high interest rates, rising input costs, and market uncertainty.

If Congress does not act, it would be one of the largest tax increases American farmers have ever faced.

Fortunately, Kansas farmers are represented in Washington by leaders who understand the value of rural America, and the essential role farmers play in our nation’s success.

I want to thank lawmakers like Sen. Roger Marshall and Rep. Ron Estes for their continued support of our agricultural communities and their advocacy for a permanent extension of Section 199A.

As an owner of Land O’Lakes, Inc., Alliance Ag and Grain is part of a broader cooperative network committed to strengthening farm families and rural economies across the country.

Making Section 199A permanent is not just smart policy — it’s an investment in the future of farming, of small towns, and of the people who keep America fed.

The strength of American agriculture depends on common sense policies that lift up the people who work tirelessly to grow our nation’s food, fuel, and fiber.

Now is the time for Congress to act — so that cooperatives like Alliance Ag and Grain can continue supporting the Kansas farmers and rural communities we’re proud to serve.