When it comes to increasing profitability, most farmers don’t think about tax credits. But they should!
Every year, farmers across the country try new hybrids, test different fertilizer programs, and experiment with cover crops or biologicals. What most don’t know: those efforts may be eligible for Research & Development (R&D) Tax Credits.
This means keeping more money in your pocket and paying the government less.
Thanks to the Big Beautiful Bill, passed in 2025, there’s now a three-year lookback window (2022–2025) that allows farmers, landowners, and other businesses to claim significant tax credits. But there’s one catch: this lookback opportunity only lasts through this tax year. Those who wait will lose this unique opportunity to cash in on four years of benefits, as opposed to one.
What Counts as R&D on the Farm?
You don’t need a lab coat or test tubes to qualify for R&D credits. In fact, you are likely doing qualifying practices already.
R&D eligible activities include:
- Planting new hybrids or varieties (old hybrids that are new to you still count)
- Planting a new cover crop for the first time or trying new multi-species mixes
- Adjusting fertilizer rates or switching to a new nutrient product
- Trying new to you biologicals
- Making custom or homemade equipment modifications
- Conducting feed trials, new genetics, or animal health improvements
“These are things farmers are already doing,” explains Continuum Ag Sales Agronomist Dale Lyons. “The R&D Tax Credit gives them a way to get rewarded for their innovation.”
A Real-World Example: Turning Fieldwork into Financial Return
Dale recently walked through a 1,000-acre example farm to show how these credits could play out in the real world. In the example, the farm is split 50/50 between corn and soybeans.
Corn Example
- 30% of those 500 corn acres have qualifying practices (new hybrids and/or cover crops)
- $67,500 in Qualified Research Expenses
- Federal tax credit: 6–8% → averaging 7%
- Annual credit: $4,725
- Four-year lookback (2022–2025): $18,900 in total eligible credits ($37.80/ac)
Soybean Example
- 40% of those 500 soybean acres with qualifying practices (new variety or biologicals)
- $40,000 in Qualified Research Expenses
- Federal tax credit: 6–8% → averaging 7%
- Annual credit: $2,800
- Four-year lookback (2022–2025): $11,200 in total eligible credits ($22.40/ac)
Total Potential Credit: $30,100 in combined federal tax credits
(This is an example of potential credits, not a guarantee. Many US states (particularly those in the Midwest) additionally give state-level R&D tax credits that could increase your financial returns even higher.)
Why It Matters Right Now
This year is unique. For 2025 only, farmers can:
- Claim a three-year lookback (2022–2024 + 2025)
- Recognize 100% of the value in one year, instead of spreading it over five years
- Bank credits for up to 20 years if you don’t use them immediately
“This is the only year the IRS is allowing farmers to go back and capture all that value at once,” says Dale. “After 2025, that window closes.” If you wait until next year, you will forgo 4X the potential credits.
How Continuum Ag Helps Farmers Capture These Credits
Continuum Ag partners with leading R&D tax credit specialists who make the process simple and farmer-friendly. Our partners:
- Guide you through the qualification and documentation process
- Collect expense and activity data from your farm
- Work directly with your CPA to ensure accurate filing
- Only charge you a success fee, so when you get paid, they get paid
Our team handles the heavy lifting; all you need to do is share your story of innovation.
Don’t Leave Money on the Table
If you’re struggling with high input costs, this is an opportunity you can’t afford to miss. You likely already qualify for significant R&D Tax Credits. Now is the time to take advantage..
This is a limited-time opportunity, and once 2025 ends, so does the three-year lookback period.
Learn More and see if you qualify today by downloading our FREE R&D Calculator Tool!
DISCLAIMER: The information provided is for general educational purposes only and are only estimates, not a quote associated with an offer. Results are not guaranteed and there are no warranties associated with this information.