AUDIO: Curt Mether, Iowa Corn Growers Association
The Iowa Corn Growers Association (ICGA) Wendesday convened for Corn on the Hill. Corn on the Hill provides ICGA farmer-members an opportunity to lobby on issues important to Iowa agriculture.
Curt Mether, ICGA vice president, says ICGA farmer-members asked state legislators to increase a business deduction.
“Section 179 allows you to deduct the expense from a machinery purchase the first year you buy it,” Mether said. “ Sometimes it’s the full amount, sometimes it’s $100,000. It’s now been reduced to $25,000. We’re hoping to get it back to being fully coupled with the federal government which is 100%.”
The Iowa Department of Revenue states Section 179 expensing “allows businesses to deduct the cost of tangible personal property purchased for business use in one year rather than deducting the cost over a number of years using depreciation.” Mether says Section 179 expensing assists farmers during tough economic times.
“You want to be able to expense what you can, as soon as you can. You need the income to keep operating. We’re in a low-income environment, so you need those expenses more than some other times,” Mether said.
ICGA farmer-members also thanked legislators for passing Senate File 512. The bill, signed into law January 31, provides over $280 million of dedicated, long-term water quality funding. Mether talks about the opportunities provided under Senate File 512.
“The incentives included in the water quality bill will help the average farmer help improve water quality,” Mether said. “It’s a big issue in our state and really important. These incentives will help the average farmer.”