Emergence of research and development credits in agriculture

By Brian Ravencraft

Whether it be grain or livestock farming, farmers are continually developing new processes and solutions to increase yields and drive success. However, many farmers/agricultural organizations aren’t aware that their operation may qualify them for research and development (R&D) incentive programs. Most farmers believe large industries like pharmaceuticals, manufacturers or technology are the only types of entities eligible for R&D credits.

Although available to other traditional industries for many years, R&D tax credits were expanded to farmers just within the past few years. Recognizing that the nation’s farmland was remaining stable as the American population grew rapidly, Congress, with bipartisan support, expanded the R&D tax credit to farmers to incentivize them to find innovative ways of producing more food on the same amount of land.

These federal and state tax credits apply not only to the farmers that find ways to innovate but also is expanded to all the companies that consult and collaborate with farmers.… Continue reading