Having these conversations early can help you make informed decisions that reduce tax surprises, protect cash flow and support the long-term success of the operation.
Savvy tax planning for farms and ranches goes beyond hunting down deductions and filing tax forms, with new legislation like the One Big Beautiful Bill Act (OBBBA), evolving clean fuel incentives and nuanced income timing rules all affecting day-to-day decisions.
As you look toward 2026, asking your tax professional about the changing tax landscape can help reduce surprises, protect cash flow, support long-term success, and make sound decisions regarding business structure and succession planning. Make sure to ask about these five topics now, while proactive planning can still make a difference.
1. How will OBBBA affect my tax bill?
The One Big Beautiful Bill Act (OBBBA), signed in 2025, introduced major, lasting tax changes that affect farms and ranches beyond short-term deductions. Ask your tax professional how those changes might affect your operation’s ongoing bookkeeping and compliance processes, capital deployment, retirement assets or succession strategy.
Read more: How Will the OBBBA Tax Changes Affect Agricultural Producers?
2. What do changes to Section 45Z mean for our operation?
The 45Z credit — a performance-based tax incentive for producing clean transportation fuels — was extended under the One Big Beautiful Bill Act (OBBBA) through December 31, 2029 (up from 2027), but with new restrictions that can affect whether biofuel producers buy feedstock like corn and soybeans from your farm and how attractive that market is for long-term planning.
Ask how these changes affect contract terms, pricing, or production choices for fuel crops — and whether investing in production practices that lower carbon intensity could position your crops more competitively.
Read more: How Can Ag Producers Prepare for the 45z Tax Credit?
3. How should I time income and expenses?
Agricultural producers have unique flexibility around income recognition and expense timing, but the rules are nuanced. Ask about:
Deferring or accelerating income from grain sales, livestock sales, or custom work
Prepaying expenses (seed, feed, fertilizer, chemicals, fuel) and how much is deductible
Limits on prepaid expenses for cash-basis farmers
How timing decisions affect self-employment tax as well as income tax
4. Is my business structure still the best fit?
Your legal and tax structure should evolve as your operation grows or changes. Ask about:
Whether your current setup (sole proprietor, partnership, LLC, or corporation) is still optimal
Opportunities to manage self-employment taxes
Implications for bringing family members into the operation
How structure affects liability, estate planning, and succession
A structure that worked five years ago may not be the best one for 2026 and beyond.
Read more: How to Choose the Right Business Structure for Your Farm or Ranch
5. What should I be doing now for succession and estate planning?
Even if retirement feels far off, tax planning and transition planning are closely linked. Ask about:
Gifting strategies and potential tax consequences
How land, equipment, and livestock would be valued and transferred
Coordination between your tax plan and estate plan
Steps that can reduce taxes for both you and the next generation
Early planning often creates more options and fewer forced decisions later.
Read More: Tax Strategies for Farm and Ranch Succession Planning
Build a solid foundation with Ambrook
With Ambrook, every transaction is automatically imported from your bank account and categorized, making it easier to track qualifying expenses and claim credits and deductions on your tax return.
Plus, with time-saving bookkeeping automation features, automatically-generated financial reports, streamlined bill pay and invoicing, and other powerful accounting and financial management tools, Ambrook doesn’t just make expense and revenue tracking simple: it takes the guesswork out of running your business. Want to learn more? Schedule a demo today.
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This resource is provided for general informational purposes only. It does not constitute professional tax, legal, or accounting advice. The information may not apply to your specific situation. Please consult with a qualified tax professional regarding your individual circumstances before making any tax-related decisions.
