How AgWise Works for Agriculture
We combine advanced technology with deep agricultural and tax expertise to maximize your R&D credits — from discovery through audit defense.
IRC § 41
R&D Tax Credits for Agriculture
The U.S. Tax Court just confirmed what we've always known: The innovation happening in your fields, barns, and feed mills qualifies for federal R&D tax credits. If you're experimenting to improve performance, you're leaving money on the table.
$319KCaptured by a single
Midwest operation
6–8%Typical credit rate on
qualified expenses
3 YrsRetroactive claims
available
OUR PROCESS
1
Discovery
We assess your operations to identify all qualifying research activities — not just the obvious ones.
2
Documentation
Our platform integrates with your existing systems to capture contemporaneous evidence automatically.
3
Calculation
We quantify qualified research expenses across all eligible categories using the optimal method.
4
Claim Prep
We prepare comprehensive technical documentation and Form 6765 — audit-ready from day one.
5
Ongoing Support
Year-round guidance, quarterly reviews, and 100% audit defense if challenges arise.
THE PRECEDENT
The Ruling That Changed Everything for Agriculture
George of Missouri, Inc. (GOMI) — a major integrated poultry producer processing approximately 3.5 million birds weekly — claimed R&D tax credits for experimental work conducted between 2012 and 2016.
Operating on razor-thin margins of approximately one cent per pound of chicken, GOMI relied on data-driven experimentation with growth rates, mortality rates, and disease prevalence to stay competitive.
The IRS challenged these claims. The Tax Court sided with GOMI — marking the first time animal agriculture was legally recognized for R&D tax credits.
KEY LEGAL PRECEDENTS
Animal Agriculture Qualifies
First-ever recognition that livestock operations can claim R&D credits for systematic experimentation.
Feed Costs Are Qualified Expenses
Broilers in experimental flocks are "pilot models" — their development costs, including feed, qualify as research expenses.
Flexible QRE Claims
You don't need to claim wage expenses to claim supply expenses — critical for operations with complex payroll structures.
No Estimates Without Evidence
The court "will not wing it with an estimate ungrounded in the record." Documentation is non-negotiable.
Builds on JG Boswell (2022)
Together with the row crop ruling, agriculture R&D credits now have solid legal footing across the industry.
ELIGIBILITY
The IRS Four-Part Test — Applied to Agriculture
For activities to qualify as eligible research under Section 41, they must satisfy all four requirements. Here's what that looks like on a farm.
01
Permitted Purpose
The research must aim to create or improve a product's functionality, performance, reliability, or quality — or improve a business process.
On the Farm: Testing a new feed formulation to improve broiler weight gain by 5% — that's improving product performance.
02
Technological in Nature
The research must rely on principles of physical or biological sciences, engineering, or computer science.
On the Farm: Genetic line trials, vaccine protocols, and nutrition science are all rooted in biological sciences. This test is a natural fit for agriculture.
03
Elimination of Uncertainty
The research must attempt to resolve uncertainty about the capability, methodology, or appropriate design of the product or process.
On the Farm: "Will this probiotic reduce mortality in our flock?" If you don't know the answer before you test, that's technical uncertainty.
04
Process of Experimentation
The research must involve a systematic evaluation of alternatives — modeling, simulation, prototyping, or trial and error — to eliminate uncertainty.
On the Farm: Running a trial flock with a control group, tracking growth rates, and analyzing results. The George court called this "the cleanest example of the scientific method."
WHAT COUNTS
Qualifying Agricultural R&D Activities
You don't need breakthrough discoveries or a dedicated lab. You need technical uncertainty, a process of evaluation, and an effort to improve performance.
Vaccine & Antibiotic Trials
Testing new disease prevention protocols, priming methods, or dosage strategies to improve herd or flock health outcomes.
Probiotic Research
Evaluating probiotic supplements aimed at improving animal health, gut performance, and production metrics.
Genetic Line Experimentation
Trialing genetic lines to enhance growth rates, disease resistance, yield characteristics, or product quality.
Nutrition & Feed Experiments
Developing or testing new feed formulations, feeding techniques, and nutritional strategies to optimize performance.
Equipment & Process Innovation
Implementing new equipment or automation techniques to make breeding, raising, harvesting, or processing more effective.
Disease Control & Prevention
Developing new methodologies for disease management, biosecurity protocols, and prevention strategies.
Crop Yield Improvement
Systematic testing of seed varieties, soil treatments, irrigation methods, or agronomic practices to increase yield.
Process Automation
Developing or adapting automated systems for planting, monitoring, harvesting, or post-harvest processing.
Production Quality Improvements
Experimentation aimed at improving product characteristics, shelf life, consistency, or compliance with quality standards.
THE CRITICAL LESSON
Documentation Makes or Breaks Your Claim
The George case wasn't just a win — it was a warning. The same company had credits allowed AND denied based entirely on documentation quality.
Credits Allowed
Genetic broiler line trial — Clear hypothesis, control groups, and detailed data analysis. The court called it "the cleanest example of the scientific method."
Vaccine priming method testing — Documented protocols with systematic approach to resolving uncertainty.
Specific probiotic trials — Measurable outcomes tracked and analyzed against control groups.
Credits Denied
Drug dosage trial — Feed records contradicted the research claim, showing the dosage never actually changed.
Activities lacking contemporaneous documentation — No real-time records to support the research claims.
Projects where uncertainty was already resolved — Evidence showed the answer was known before work began.
“The court will not wing it with an estimate ungrounded in the record.”
— U.S. Tax Court, George v. Commissioner (2026)
What You Need to Document for Each Research Project
Project Records
- Clear hypothesis: What technical question are you answering?
- Experimental design: How are you testing it? What's the control?
- Data collection: Growth rates, mortality, yield metrics
- Analysis and results: What did you learn?
Financial Records
- Research-related supply costs (feed, materials, inputs)
- Labor records for time spent on research activities
- Equipment and facility costs for experimental work
- Contract research invoices and agreements
Operational Documentation
- Feed formulations and recipe changes
- Trial protocols and procedures
- Production records: experimental vs. standard
- Meeting notes on technical challenges and solutions
The Good News
You're already creating most of these records — production logs, feed recipes, trial results. The George court confirmed that documents created in the normal course of business are your strongest evidence. You don't need special “research” files.
GET STARTED
Find out if your operation qualifies
Most farms are doing qualifying work without realizing it. Let's take a look.