New growing techniques, precision-ag technology, equipment, genetics, sustainability, modern agriculture runs on innovation, and much of it qualifies. It’s one of the most overlooked industries of all.
Request a Complimentary AssessmentFrom precision-ag sensors and data to new growing methods, irrigation, soil health, and equipment, today’s agriculture involves constant experimentation under real uncertainty. If you’re improving how things are grown, raised, or processed, there is very often a credit in it.
Developing a sensor-and-data approach to optimize inputs across variable fields.
Trialing a new irrigation or soil program to improve yield under real uncertainty.
Modifying machinery to handle a crop or process it wasn’t originally built for.
R&D credits reward developing and improving how you farm. Separately, when you buy farmland, the residual soil fertility left by prior owners can be deducted as it’s used up, a different incentive entirely. Many agricultural operations qualify for both.
A new or improved growing method, input, genetic, or piece of equipment.
Grounded in agronomy, biology, engineering, and data science.
It was uncertain whether a method or technology would improve the outcome.
Resolved through field trials, testing, and measured iteration.
The credit rewards technical experimentation, testing new methods, equipment, or inputs under uncertainty, which is ordinary in modern agriculture.
R&D credits are for developing and improving how you farm; the residual-nutrient deduction is for the fertility in farmland you acquire. Different incentives, often both available.
Yes, testing that doesn’t pan out is part of the process of experimentation the credit rewards.
This page is general information, not tax or legal advice. Whether specific activities and expenses qualify depends on the taxpayer’s facts and applicable law, and is determined through the appropriate R&D study. Novaric does not guarantee eligibility, credit amounts, or any IRS outcome.