KANSAS CITY, MISSOURI (RFD News) — Farmers selling farmland may now be able to spread out their tax payments over several years under a new provision. However, there are a few requirements.
Farm CPA Paul Neiffer says the land must have been actively farmed for at least 10 years before it is sold. It also has to stay in farming for 10 years after the sale, with that agreement recorded with the property.
He says the full income from the sale is still reported right away, but the taxes don’t all have to be paid at once.
Instead, 25 percent of the tax is due April 15 after the sale, with the rest paid over the next three years.
There’s also some confusion around timing.
While the rule applies to sales after July 4, 2025, it applies only to tax years that begin after that date. For most farmers, that means it won’t apply until the 2026 tax year.
Neiffer says the benefit depends on interest rates, but spreading out payments could help lower the overall tax burden.
Bankruptcy filings reflect prolonged margin pressure, rising debt, and limited financial flexibility across farm country. Bigger operating loans are helping farms manage costs, but they also signal growing reliance on borrowed capital.
February 10, 2026 01:35 PM
·
Income support helps, but farm finances remain tight heading into 2026.
February 09, 2026 03:04 PM
·
Nationwide highlights expanded insurance options for cattle operations and their company initiatives to promote grain bin safety and support women in agriculture.
February 09, 2026 02:58 PM
·
Federal assistance has helped, but the most recent row-crop losses remain on producers’ balance sheets.
February 09, 2026 01:07 PM
·
Danny Munch of the American Farm Bureau joined us to discuss USDA’s latest farm income forecast, revisions to prior estimates, and what the updated data means for farmers heading into 2026.
February 06, 2026 12:27 PM
·
More flexible export financing could strengthen demand in emerging markets and support higher U.S. agricultural exports.
February 06, 2026 07:00 AM
·
