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.
High ownership does not always translate into high output, underscoring the importance of structural differences in understanding state-level farm performance.
December 28, 2025 03:00 PM
·
Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
December 25, 2025 12:00 PM
·
A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
December 24, 2025 06:00 AM
·
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
December 22, 2025 03:19 PM
·
National Land Realty’s Jeramy Stephens shares his outlook on farmland market trends, which remain under close watch as new federal assistance programs roll out — with experts analyzing potential impacts on land values, buying, and stability.
December 19, 2025 02:15 PM
·
Farm CPA Paul Neiffer outlines the key difference between previous ECAP payments and the Farm Bridge Assistance Program.
December 19, 2025 01:56 PM
·
