Letter to the Editor
Jeff Johnson, CEO, Centra Sota Cooperative
Click photo to view article on INforum.
Centra Sota’s CEO wrote a recent Letter to the Editor, published on INforum.com about a tax provision known as Section 199A that is set to expire. Read the letter below or by clicking on the photo.
Across rural America, where barns dot the landscape and generations of families work the land, agricultural cooperatives have long served as pillars of strength, community, and shared success. As CEO of Centra Sota Cooperative—a central Minnesota co-op with a proud 100-year history—I’ve witnessed how cooperatives keep rural towns thriving and support the families who feed and fuel our nation.
From the outside, cooperatives may look like any other business. But they are fundamentally different. And in today’s global economy, as farmers take on the immense responsibility of feeding a growing population, it’s never been more important to understand and preserve the cooperative model—a structure that puts local farmers first and reinvests directly into the communities we call home.
Centra Sota Cooperative began serving farmers in this region more than 100 years ago, and today, with 17 locations across central Minnesota, we continue that mission with pride. We offer critical services—agronomy, grain, feed, energy, and more—that help our farmer-members succeed, especially in a landscape that grows more competitive and consolidated every year. Our team of dedicated employees works alongside our members, not just as service providers, but as neighbors and partners.
What makes cooperatives like Centra Sota unique is that we are owned by the farmers we serve. That means our success is their success, and every dollar we earn is reinvested locally – supporting not just agriculture, but Main Street businesses, schools, and entire communities.
A crucial part of our longevity has been a tax provision known as Section 199A, which allows co-ops to return value to members while keeping more dollars in rural America. It’s been instrumental in helping cooperatives provide the financial stability and local reinvestment our communities depend on.
But that stability is in jeopardy. While the corporate tax rate was made permanent in 2017, the cooperative-specific benefits under Section 199A are set to expire this year. Without congressional action, farmers across Minnesota and the nation could face a significant tax increase—at a time when they’re already navigating high interest rates, inflation, and uncertain markets. It would be one of the most damaging tax hikes our agricultural community has ever seen.
Minnesota’s farmers are fortunate to have champions in Washington who understand the importance of agriculture and the rural economy. I want to thank Rep. Michelle Fischbach for standing with cooperatives and farm families, and for pushing for a permanent extension of Section 199A.
As an owner of Land O’Lakes, Inc., Centra Sota is proud to be part of a national cooperative system that lifts up American agriculture and supports rural communities coast to coast. Ensuring Section 199A remains in place is not just a matter of tax policy—it’s an investment in our future, our food supply, and our way of life.
The strength of American agriculture relies on thoughtful, pro-farmer policies that support those working the land every day. Now is the time for Congress to stand with rural America—and ensure cooperatives like Centra Sota can continue to serve our members and their communities for the next 100 years and beyond.