FarmFirst Dairy Cooperative applauds Congress for passing valuable legislation onto the White House which will extend the tax provision known as Section 179. This tax extension provides farmers and small businesses the ability to write off capital purchases immediately instead of over time by use.

FarmFirst Dairy Cooperative has been diligently communicating with legislators regarding the farmer-focused tax provision, especially since 2014 has proven to be a record high year for the milk price.

"We know that while our members have enjoyed the record high milk prices from this past year. We also know that they're thinking about their upcoming taxes and are eager to reinvest in their operations," says David Cooper, General Manager. "Section 179 allows them to do just that. It's important to us as a cooperative and the industry as a whole that we continue to make improvements on our farms, so we can continue to meet the demands of our consumers."

The maximum amount of annual expensing under the extension is $500,000, as it was in 2013. Prior to this extension, the amount had reverted back to $25,000 since the stimulus package in 2013 had expired. This new extension makes a significant difference in what farmers can consider for end-of-year investments. A 50 percent bonus depreciation for the purchase of new capital assets, including farm equipment, is included.

While this accomplishment provides relief this upcoming tax season, FarmFirst Dairy Cooperative is disappointed it is only for a one-year extension.

"Dairy farmers experience various financial strains throughout the year. Passing Section 179 eases that burden for farmers, especially those looking to the future generation planning to take over their operation," says Cooper. "Having a permanent tax provision like Section 179 is where we will continue our efforts so farmers are able to plan year to year."

FarmFirst Dairy Cooperative has thorough representation in Washington, D.C. thanks to its involvement on these policy issues, and its relationships with other organizations.

For additional information on FarmFirst Dairy Cooperative, visit www.FarmFirstDairyCooperative.com or call (608) 244-3373.

FarmFirst DairyFarmFirst Dairy Cooperative was established in 2013 and is based in Madison, Wis. Dedicated to its family farm members, the cooperative represents farms in Wisconsin, Minnesota, South Dakota, Michigan, Iowa, Illinois and Indiana through policy bargaining, dairy marketing services, laboratory testing opportunities and industry promotion. Learn more about FarmFirst Dairy Cooperative by visiting: www.FarmFirstDairyCooperative.com.
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12.18.2014