R&D Tax Credits For Your Farmer/Members

By Dennis Gardiner

Over the last two years almost all you have had a study done to determine how much research and development (R&D) tax credits your cooperative could claim. Working with the Alliant Group, we have been able to amend returns to claim the credits, use the credits on the current tax returns, or carry the credits forward. The studies will continue into the future as long as your cooperative sees the benefits, and has a desire to claim the R&D tax credits. Seems like a “no brainer”; haven’t met a cooperative yet that wants to leave tax deductions and credits on the table.

All that said, what about your farmer producers? The R&D credit is not limited to companies or cooperatives. Your farmer patrons may be able to claim tax credits also. If you know producers who have modified product formulations and/or growing processes to increase yields, reduce the reliance on chemicals, accelerate weight gain, or other improvements to the efficiency of their operation there is a strong chance they could benefit from an R&D Tax Credit study. In the event an operation is currently reporting a farm loss and no income taxes are being paid, the R&D credit may still be advantageous if any of the prior three years reported taxable income (as these tax years could be amended). Or, the credit could be used to offset payroll taxes paid or carried forward up to 20 years to offset future income.

Examples of agricultural activities eligible for R&D tax credits include:

  • Implementation of precision farming techniques in attempt to increase yield and/or production efficiency
  • Experimentation with new or different fertilizers (organic etc.)
  • Evaluation and implementation of new techniques to increase yields
  • Development of new disease resistant crops or livestock
  • Development or experimentation with new feeds or feeding techniques for livestock
  • Development and experimentation with new breeding techniques
  • And many more!


Reach out to us to discuss how to best approach your farmer/ patrons, and introduce this to them so they too can claim the credits available to them.