There was a day not long ago when the use of a drone was a fun hobby where everyone would stop and gaze at the unusual object darting around in the sky. Today it’s all different. Drones are used in so many ways in agriculture it would be impossible to list them all. The drone is a powerful tool that gives the farmer real-time information that is invaluable in making good decisions. The day is here when farmers will buy drones just like they purchase a new tractor but at far lower costs.
I have focused on crops thus far, but it’s critical that we recognize that artificial intelligence and technology development is changing all of agribusiness.
The impact on animal agriculture, supply chains, for instance, will be no less profound. However, the critical question that farmers need to answer today is will our nation lead the way in agriculture production through artificial intelligence and technology, or will we yield that power to China or to another country?
Taking advantage of the R&D credit
I know the American farmer well. They were my mentors when I grew up on that dairy farm in north central Iowa. They were my supporters in Nebraska as I served as their Governor, Ag Secretary and Senator. They are ready to feed, clothe and fuel the world, but they need our help. The Research and Development Tax Credit is a powerful tool for them that eases the burden of financing their entry into the world of AI. It’s important to note, the R&D isn’t only for scientists or engineers and in fact, it is one of the strongest catalysts to digital transformations that farmers can take advantage of.
Certain farming specific legislation, like the Farm Bill which dates back to the 1930s, doesn’t target innovation support for the industry, whereas the R&D credit is much more effective in realizing these visions. Improvements to harvesting and cultivation techniques, along with the implementation of new equipment are just a couple of the activities that may qualify for the credit. Farmers must work closely with their advisors and tax professionals to determine if they qualify for the R&D credit and what they can do to begin taking advantage of it. By not utilizing valuable government incentives, farmers are leaving essential funds and innovation on the table.
The legislative and executive branches have always stood by farmers because food is our most important national security issue. To continue this support, they must not only urge agriculture experts to take advantage of the credit, but also continue expanding this resource and other financial incentives that reward innovation in the sector.