The National Pork Producers Council (NPPC) is actively working to preserve key tax provisions that are critical to the survival and success of pork producers across the United States. Recently, the U.S. House Appropriations Committee held a public hearing at the Iowa State Fair to address several expiring provisions of the Tax Cuts and Jobs Act (TCJA). The hearing gathered insights from agricultural and business stakeholders that highlighted the critical role these tax provisions play in maintaining financial stability, promoting growth, and enabling strategic business planning within the pork industry.

Several key provisions, including bonus depreciation, the qualified business income deduction, and increased estate tax exemptions, are at risk of expiring unless Congress acts. Bonus depreciation, for example, allows manufacturers to deduct the full cost of equipment in the year it is put into service, rather than depreciating it over several years. Losing this provision could significantly increase manufacturers’ taxable income and limit their ability to make necessary investments in cutting-edge technology and equipment.

The qualified business tax deduction, Section 199A, is another important provision. Its expiration could result in higher tax liabilities or force producers to adopt less flexible business structures, resulting in double taxation as a corporation. With pork producers already facing difficult economic conditions, including low or negative margins over the past two years, any increase in the tax burden could significantly impact their ability to recover and sustain operations.

NPPC representatives, including Chase Adams, Assistant Vice President for Domestic Policy; Christina Banoub, Manager of Competition, Labor and Tax Affairs; and Tyler Bettin, Assistant Vice President for Producer Services, attended the recent hearing to represent the pork industry’s interests. The NPPC is committed to working with Congress in a bipartisan manner and with newly formed “tax teams” to review potential 2025 tax legislation that could address the looming expiration of these provisions.

To support its arguments, NPPC is working with a leading accounting and food and agriculture consulting firm to develop an in-depth analysis that will underscore the importance of maintaining these tax provisions and propose additional tax changes that could provide even more benefits to pork producers.

The NPPC’s efforts are focused on ensuring pork producers continue to benefit from effective tax policies that promote profitability and growth. As the tax landscape evolves, the NPPC will continue to be at the forefront, advocating for the retention of these essential provisions and exploring new opportunities to strengthen the financial health of the pork industry.

For more information and updates on NPPC lobbying activities, visit SwineWeb.com.