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.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
January 23, 2026 07:00 AM
·
Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
January 22, 2026 06:00 PM
·
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
January 19, 2026 05:00 PM
·
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
January 19, 2026 03:00 PM
·
New Resource Makes It Easier for People to Access Data on Rural Development funded Projects in Rural Communities
January 19, 2026 11:50 AM
Rising rural business confidence supports local ag economies, but taxes and labor shortages remain key constraints.
January 17, 2026 02:00 PM
·
