What’s Working in Ag: The Tax Credit Most Farmers Still Miss
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What tax credit are many farmers still missing?
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How can farmers benefit from research and development tax credits?
Offered by FBN Finance and its lending partners. NMLS ID 163-1119. Terms and restrictions apply. Okay, prove it. What's the largest credit that you guys have worked on?
$75 million.
No way. Yeah.
Look, this is a complex area. There are Fortune 100s out there.
What is the potential financial impact for a 2,000-acre corn and soybean farm?
They need help in this credit. Now, don't come out here thinking you're going to get $75 million in credits if you've got a million dollars a year in expenses. But yeah, no, we help out companies of all sizes.
Ladies and gentlemen, farmers, ranchers, and distinguished guests, thank you for listening to the Farm for Profit podcast, where we discuss the latest ideas, methods, trends, and techniques available to help your farm achieve higher levels of farm profitability. Remember, if you aren't farming for profit, you won't be farming for long.
Hey, Tanner, remember when we started Farm for Profit, everything was about being profitable. We started What's Working in Ag because we want to talk with real-life people. Well, the times are tough, so I'm going to take you back on a little memory lane here. We need to go back to being more profitable.
I think the key focus of Farm for Profit has always been about helping farmers achieve higher levels of profitability. And then when Corey joined, he wanted to do it in a fun and entertaining fashion. That's right. And now this year, more than any year, if you look back to the shows that we've done so far, that's been a main focus of ours is helping farmers find extra dollars to put in their pocket. And today, this is what's working in ag as a preclusion. Did I even use that word right?
Why has the research and development tax credit become more accessible for farmers?
Preclusion? I don't know. Is that a word? No, that means you're separating it, precluding it. It's the trailer for the full show that's going to come out next week. We wanted it to be on your radar because you do not want to miss next week's Farm for Profit show. Corey, who do we have today for this segment? We have Onshore.com, and particularly we've got Dom, the CEO, and Tim here with us. And we're going to learn about research and development tax credits. That's right.
How do tax credits differ from deductions in farming?
So quick, hot, and heavy, let's get through this. First of all, let's catch their attention. What potentially is at stake for a farmer that farms 2,000 acres of corn and soybeans?
If you've got 2,000 acres of corn and soybeans, you're looking over $100,000 possibly of money back in your pocket.
And that's through a credit.
Yes, right.
That's right.
Permanent tax credit. It can offset a payment you have upcoming. It can go back and get refunds on taxes that you paid in the last four years.
So you can bank it going forward. You got a look back period. So we're talking about the research and development tax credit.
Yes, sir.
When we go through a full interview, nitty gritty, diving deep into it.
Who should pay attention to tax credits before 2026?
But why is this even possible to farmers today?
So it was put in place by Reagan in 81, but you had to be doing patents and inventions, hence research and development. Bush in 2003 was looking for a stimulus and changed the rules and made it so it's about doing things that are new to you as a taxpayer, trying to improve the performance of your product or, I think, yield of your crop. But every single president coming in has made this more taxpayer-friendly. Obama made it so you could take your tax liability down to zero, and Trump just made it so that those refunds that guys need right now, instead of taking years, are taking weeks.
Oh, and the one big, beautiful bill.
That's right. Yeah.
Nice. I like this, but I can already see Corey and Dave's gears spinning. What the heck is research and development?
Yeah. So research and development is as you're looking at different new hybrids, different chemistries, different fertilities, the different changes you're looking to your operation to be more competitive and understand how does this work on my farm with my agronomic practices?
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Chapters
8 chapters
1
What tax credit are many farmers still missing?
0:00–0:22
2
How can farmers benefit from research and development tax credits?
0:22–0:41
3
What is the potential financial impact for a 2,000-acre corn and soybean farm?
0:41–2:04
4
Why has the research and development tax credit become more accessible for farmers?
2:04–2:31
5
How do tax credits differ from deductions in farming?
2:31–3:08
6
Who should pay attention to tax credits before 2026?
3:08–4:11
7
What qualifies as research and development in modern farming?
4:11–5:02
8
What activities are excluded from qualifying for R&D tax credits?
5:02–8:49
Speakers
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