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.
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.
April 30, 2026 01:22 PM
·
Expanded export financing could provide greater support for ag sales abroad if buyers and lenders use the additional tools.
April 30, 2026 12:38 PM
·
Clean power growth remains strong, but slower deal-making could affect future rural energy and land-use opportunities.
April 30, 2026 08:00 AM
·
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
April 29, 2026 03:18 PM
·
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.
April 29, 2026 03:03 PM
·
ASFMRA’s Luke Worrell joined us to discuss farmland market trends, insights from the Illinois Land Values Conference, changing buyer and seller demographics, and the latest outlook on planting progress.
April 29, 2026 02:34 PM
·
