Charitable Commodity Gifts in 2026
The One Big Beautiful Bill Act (OBBBA) will not alter charitable commodity‑gift rules, but it tightens cash‑donation deductions starting in 2026. For farm families, this makes donating grain, corn, soybeans, or other commodities directly to churches or food banks far more tax‑advantageous than writing a check. Because the income from a direct commodity donation never materializes, farmers avoid federal, self‑employment, and state taxes on that amount. The new cash‑donation regime therefore amplifies the financial appeal of in‑kind giving.
Equipment Gains Not Automatically Farm Income for SDRP
The One Big Beautiful Bill Act (OBBBA) reclassifies equipment gains as farm income, but the change only takes effect for crop years beginning in 2026. Consequently, for the current Supplemental Disaster Relief Program (SDRP) years—2023 and 2024—equipment gains do not count toward the...
How the 2008 Farm Bill Helps Joint Filers Qualify for SDRP
The USDA’s Supplemental Disaster Recovery Program (SDRP) requires at least 75% of a household’s gross income to come from farming. Married couples filing jointly often fall short when one spouse earns significant off‑farm income. A provision in the 2008 Farm...
IRS Plans a Full-Year Pass on 280E for Medical Marijuana
The Treasury and IRS announced on April 23, 2026 that medical marijuana products re‑classified to Schedule III will receive a full‑year of ordinary tax deductions for 2026, eliminating the mid‑year split. Section 280E, which bars most deductions for Schedule I/II substances, will still...
Kustoff Bill Would Boost Section 199A Deduction to 23%, Expand QBI Eligibility
Rep. David Kustoff introduced the Small Business Tax Cut Act, proposing to raise the Section 199A qualified business income deduction from 20% to 23% and broaden eligibility. The bill rewrites wage and property limits, allowing service‑trade businesses to retain the...
IRS Tries to Bring Amended Returns Into the 21st Century
The IRS has opened electronic filing for Form 1040‑X and deployed AI tools that instantly cross‑check amended returns against existing data, dramatically cutting the initial review time. Despite the technology boost, a human still must manually adjust the taxpayer’s account,...
Start Thinking Now About Crop Insurance Deferral for the 2026 Harvest
Farmers planting for the 2026 harvest should start planning how a crop‑insurance payout will affect their 2026 tax return. Under IRS Section 451(f), cash‑basis producers can defer part of a 2026 insurance check to 2027, but only if three specific...
Micro-Captive Insurers Have a Small Victory in Court
The U.S. District Court for the Southern District of Texas ruled that the IRS exceeded its statutory authority by designating micro‑captive insurers as listed transactions. The court struck down the mandatory listed‑transaction filing requirement, though it allowed the IRS to...
Three Deferral Likely Applies Starting in 2026
The IRS has introduced a Section 1062 four‑installment, three‑year deferral for gains on qualifying farmland sales, but it only applies to transactions occurring after July 4, 2025 and to taxable years that begin after that date. Consequently, taxpayers filing a calendar year 2025...
The 2026 EBL Limit Is Much Lower Than the 2025 Limit
The Tax Cuts and Jobs Act of 2017 created Excess Business Loss (EBL) limits to curb large agricultural loss deductions, originally set at $250,000 for single filers and $500,000 for married couples. Those caps were indexed to inflation, reaching $313,000...
Wheat May Pay More Than Corn
U.S. farm income support payments under the ARC and PLC programs peaked in September 2025 but have been eroding, according to the latest April WASDE report. The new data indicate that wheat’s projected payments may now exceed those for corn,...
Payment Limits and Top-Ups Under SDRP
The USDA’s Staged Disaster Relief Program (SDRP) is closing its Stage 1 and 2 sign‑up period at the end of April 2026, after which it will calculate funds for a potential top‑up. Initially, the agency will cover about 35 percent of verified crop losses,...
Will 2026 Be Better for Corn Farmers Than 2024 and 2025
The Kansas City Federal Reserve released an updated forecast showing a higher profit per bushel for corn farmers in 2026 than in 2024 and 2025. The new estimate reflects a modest rebound in corn prices combined with relatively stable input...
IRS Provides Estimated Tax Penalty Relief for Farmers
The IRS issued Notice 2026‑24, automatically waiving the Section 6654 estimated‑tax penalty for qualifying farmers who file their 2025 returns by March 1 and pay the full liability by April 15, 2026. The relief addresses delays caused by the late finalization of Form 8995 and...
New Section 1062 — Spreading Out the Tax Bill on Farmland Sales
The One Big Beautiful Bill Act, enacted July 4 2025, added Section 1062 to the Internal Revenue Code. The provision lets sellers of qualifying farmland defer the entire capital‑gain tax into four equal, interest‑free installments when the buyer is a qualified farmer. This...