· FARM TAX · CROP INSURANCE · EQUIPMENT · SUCCESSION
Agricultural Tax Expertise Built Around How Farming Works
Cash basis accounting, farm income averaging, crop insurance proceeds, and equipment depreciation. Agricultural tax is a specialized discipline. Archer Lewis works with farmers and agricultural businesses who need advisors that understand the industry.
Our Approach
Agricultural tax expertise built around how farming works.
Agricultural businesses operate under tax rules that don't apply to other industries: farm income averaging, special cash basis accounting elections, crop insurance tax deferral, and equipment depreciation that has to be timed with the income cycle. These provisions require specialized, ongoing attention to apply effectively. Archer Lewis works with farmers, ranchers, and agricultural businesses to apply the full range of agricultural tax provisions proactively, as a core part of their tax planning.
What We Handle
Accounting and tax services for agricultural businesses
From farm income averaging to succession planning, our team handles the financial complexity specific to agriculture.
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Farm Tax Preparation
Agricultural tax returns prepared with the full range of farm-specific provisions applied: Schedule F, farm income averaging, and all applicable elections.
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Farm Income Averaging
Spreading taxable income across prior years to reduce the impact of high-income years, one of the most valuable agricultural tax tools.
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Crop Insurance Tax Planning
Deferral elections for crop insurance proceeds, managing the timing of taxable income around production cycles.
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Equipment & Depreciation Planning
Bonus depreciation, Section 179, and MACRS schedules timed to your income cycle.
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Land & Real Property Planning
Tax planning for farmland ownership, purchase, sale, and succession, including 1031 exchanges.
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Farm Succession Planning
Transferring a farm operation to the next generation, equitably, tax-efficiently, and in a way that keeps the operation viable.
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Agricultural Entity Structure
The right structure for a farming operation depends on family dynamics, succession goals, and tax efficiency.
Farm income averaging can meaningfully reduce taxes in a strong year.
Agricultural income is volatile. A strong crop year followed by a drought creates tax peaks and valleys that require proactive planning to manage well. Farm income averaging smooths those peaks by spreading income across prior years, reducing the tax rate on high-income years. Archer Lewis applies this and every other agricultural tax provision as a matter of course.
Talk to an Agriculture Advisor
Common Questions
What farmers and agricultural businesses ask us.
Farm income averaging lets you elect to spread current year farm income across the prior three years, calculating tax at the lower rate that would have applied if the income had been received evenly. It's most valuable in high-income years following lower-income years. We evaluate whether to make the election each year based on your income history.
Yes, in many cases. If you normally would have received the crop income in the following year but received insurance proceeds in the current year due to crop damage, you may be able to elect to defer reporting them. Timing this election correctly requires understanding your normal income cycle and the specific circumstances of the insurance claim.
Farm succession is one of the most complex planning situations in agriculture, balancing fair treatment of heirs who aren't involved in the operation with the financial viability of the farm for those who are. Options include gifting programs, installment sales, family limited partnerships, and conservation easements. We work with farm families on succession planning as a long-term engagement.
It depends on the size and composition of the operation, family dynamics, and succession goals. Land and equipment are often held separately from the operating entity for liability and succession reasons. We analyze your specific situation and recommend the structure that produces the best long-term outcome.
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