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Demistifying the R&D Credit for Agriculture

Learn which farming activities qualify for the R&D tax credit. From irrigation to precision farming, learn how everyday innovation meets IRS criteria.

Mark Stapleton | Director of Quality Control, SPRX

Mark Stapleton | Director of Quality Control, SPRX

Oct 2, 2025

Thousands of farmers qualify for the R&D credit but never claim it. Here’s what actually counts as R&D on the farm.

Every farmer is trying to do one thing: increase yield.
More per acre. More per livestock. More per field.

And to get there, you test and experiment. New seed varieties. Fertilizer mixes. Irrigation cycles. Planting patterns. Feed adjustments. Small, deliberate trials that help you see what performs best.

What most farmers don’t know is this:

The work you already do qualifies as R&D and the government will pay you for it.

Agriculture has always qualified. Most farmers don’t realize it.

Fewer than 1 in 10 eligible farms actually claim the R&D credit.

There are a few reasons for this

  • Some CPAs advise against it because the credit seems too complicated.

  • Others assume R&D is only for scientists or big agriculture labs.

  • Many farms have never heard of it.

The truth is, farming has always qualified for R&D, and every day experimentation is precisely what the credit is designed for.

Why Farming Work Qualifies as R&D

If you're trying new ways to grow, feed, conserve, or harvest to improve performance, that is qualified research.

Farmers meet the IRS R&D criteria every season without changing a thing. Anytime you’re working to improve yield, reduce waste, or increase efficiency, you’re already doing the work that the credit rewards.

Here’s how everyday farm decisions map directly to the IRS standard:

You’re improving performance

Aiming for a better outcome than last year — more per acre, healthier herds, stronger stands, or more efficient use of inputs.

Farming is grounded in science

Soil biology, agronomy, genetics, irrigation mechanics, animal nutrition, and engineering. Farming is a science in motion and qualifies by default.

You’re uncertain which approach will work best

Choosing hybrids, shifting planting dates, modifying feed rations, trying new conservation methods — all done without guaranteed results.

You run small trials to figure it out

Side-by-sides. Split fields. Test strips. Feeding trials. Equipment tweaks. You measure, compare, refine, and repeat.

If you’re doing this work, you already meet the IRS definition of R&D. The only missing piece is proper documentation — and that’s where SPRX comes in.

The Takeaway for Farms

Innovation in agriculture doesn’t start in a lab. It begins in the field with curiosity, measurement, and persistence.

If you’re improving how food is grown, raised, or processed, you’re doing the kind of work the R&D credit was built to reward.

SPRX helps you capture that value with precision, clarity, and confidence.

Get in touch if you want help claiming your R&D credit

Learn more about the R&D Credit

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Ready to take a closer look at SPRX?

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Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.