Doug Claussen Highlights Farm Tax Issues for Congressional Consideration

(April 5, 2017) –Congress is weighing significant changes to the way farmers and agribusinesses are taxed, which could have a profound impact on how they do business. With tax reform holding opportunities and risks for U.S. agriculture in the balance, K·Coe Isom’s Doug Claussen, CPA, traveled to Washington, D.C., to provide testimony to the House Committee on Agriculture.

“Tax reform has broad implications across all areas of U.S. agriculture,” Claussen said. “We were honored to be invited to speak to the interests of producers and agribusinesses who strive to raise food and families profitably while adjusting to potential changes in the tax code.”

In the U.S. House of Representatives, legislation will be based on the Tax Reform Blueprint released by Speaker Ryan in June of 2016. The Blueprint proposes to lower and flatten corporate and individual rates, create a new business tax rate for pass-through entities, and repeal the estate tax. It also allows for immediate expensing of qual­ified purchases and capital expenditures (excluding land), but would limit the ability to carry forward net operating losses, eliminate the ability to carry back net operating losses, and limit deduction of interest expenses.

Among the many agriculture and tax reform topics touched on in the public hearing, Mr. Claussen made a point to the committee that forecast for farming net income in 2016 is half of what it was in 2013. And that adding the ability to carry back operating losses for five years, as opposed to the current two years, is critical to helping farmers deal with the volatility of the markets.

About K·Coe Isom

K·Coe Isom leads, nationally, as consultants and CPAs in the food and agriculture industry—services constituting more than two-thirds of the firm’s business. The firm is embedded throughout the US food-supply chain—from policy to plate—working with producers, input suppliers, processors, packagers, distributors, biofuel manufacturers, equipment dealerships, landowners, lenders, and many agencies and policy organizations that support the industry. The firm also has regional strengths in community banking, construction and real estate development, transportation, education, healthcare, manufacturing, and technology. K·Coe Isom serves domestic and international clientele from 19 coast-to-coast offices.