Former Agriculture Secretary touts tax credits for farmers

“This is no longer about white coats and laboratories,” he says. “This really is about everyday things farmers and ranchers do to improve their process, to improve their herd, to improve their feed rations and to improve the productivity of their land.”

Now granted, Johanns has an incentive to tout the research and development tax credit. He currently serves as the chairman of agriculture for alliant. That company provides tax and consulting services for small and midsized businesses. Its roster includes an impressive collection of former lawmakers and business executives. Still, Johanns says it’s the ability to help farmers that motivates him.

“This is a great opportunity for folks I’ve worked with for many decades in agriculture,” he says.

For example, he says if a corn or soybean farmer decides to do different things with tillage or experiment with seed varieties, that farmer could be eligible for an R&D tax credit. Not only that, if the farmer can show they’ve been implementing practices for a while, they may even be able to have their previous tax returns amended. This can bring a welcome, unexpected infusion of cash

A recent court case ruled that the cost of seed a farmer put into crops attempting to increase productivity qualified for an R&D tax credit.

Johanns advises producers unsure of what tax credits they qualify to meet with an expert and discuss their operation. Based on the conversation, the producer may get tips on how they could earn the R&D tax credit. They also may learn they already qualify for one.

On many occasions, farmers have told Johanns the practices he’s talking about are things they are already doing. He says that’s exactly the point. There are plenty of things that qualify for an R&D tax credit. The key is understanding how to get it. Johanns sees his job as educating people on so they can maximize their profitability.

“It’s been so exciting to be involved with this and we’ve just had such an impact out there,” he says. “The research and development tax credit really works. It works great for agriculture.”