today I am introducing bipartisan legislation that will improve the viability of agriculture and rural communities in western States like Colorado. This legislation will make it easier for mutual ditch and irrigation companies, which are an integral part of agriculture in arid regions where you often have to transport irrigation water over long distances, to remain profitable. I thank my colleagues Senators Crapo, Bennet and Barrasso for joining me in this effort. Mutual ditch and irrigation companies are primarily associations of farmers who band together to construct and operate water delivery and storage systems for use on semi-arid farmland. For 150 years, mutual ditch and irrigation companies have installed and maintained this kind of infrastructure to convey water to irrigated lands in the West. These companies can qualify for tax-exempt status if at least 85 percent of their income comes from their member assessments. The 85- percent rule is meant to ensure that the members of tax-exempt cooperatives are not able to enrich themselves by making investments unrelated to their charitable purpose. Over time, however, the cost to maintain and operate aging water infrastructure has made it impossible for many mutual ditch and irrigation companies to operate solely on member income.…
On the recordNovember 29, 2012
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