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By Mike Johanns, alliant's Chairman of Agriculture; Former U.S. Secretary of Agriculture
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Former Secretary of Agriculture Mike Johanns had not met Brooke Rollins until recently. When he learned President-elect Trump nominated her for agriculture secretary, he made a congratulatory call. He left that conversation convinced Trump made an impressive pick.
“I just think she’s got the right blend of agriculture and policy experience,” Johanns says about Rollins. “Most importantly, if I were to say one thing that stands out to me, she’s got the confidence of President Trump and that’s huge.”
He notes Rollins has a longstanding relationship with Trump, serving as domestic policy director and other roles during his first term. Rollins went on to run a think tank promoting Trump policies. Johanns says it’s hard to quantify how valuable working together can be.
When he assumed the top USDA job in 2005, Johanns and then President George W. Bush knew each other from their time as governors of Texas and Nebraska. However, they had never worked closely together. That presented something of a learning curve as he acclimated to the executive branch. Since Trump and Rollins already have an established working relationship, Johanns believes her voice on ag-related issues will be heard from day one.
The former ag secretary likes the fact Rollins grew up on a small Texas farm and has extended family members who farm in Minnesota. This, he says, gives Rollins experience in Southern and Midwestern farming. He’s also impressed Rollins earned an agriculture development degree at Texas A&M and served as the university’s first female student body president.
According to Johanns, every time there’s White House discussion about issues affecting agriculture, the room is going to turn to Rollins for input. He anticipates her having a strong voice on rural issues. In fact, he “can’t imagine” there being a person better positioned to advocate for agriculture, especially considering her ties to Trump.
“I didn’t have to spend 20 minutes talking to her about what agriculture means to America. She knows that,” Johanns says.
Excited about Trump’s return
Johanns, who currently works as chairman of agriculture at alliant, says President Biden has been “weak” on trade. According to USDA data, 2024 will go down as the year with the largest agricultural trade deficit. Johanns expects the Trump administration to improve that. He says the country has already gotten a glimpse of how Trump will approach trade in his first term, calling him a “giant of a friend” for American agriculture and rural America in general.
“He wanted to get some things straightened out with China that had ramifications on the farm and ranch, so he and (former Ag Secretary) Sonny Perdue designed the program to do what they could to help farmers and it made a huge difference,” Johanns says.
He’s also hopeful Trump will streamline regulations he believes hinder farmers, and address illegal immigration, which he contends is “completely out of control.” While he admits those issues will be tough to tackle, Johanns praises Trump for not shying away from tough issues.
He also believes farmers understand there will be consequences as new policies are negotiated. Still, Johanns is confident they will remain firmly behind Trump and his new agriculture secretary.
“I think the two of them will make a great team in terms of how we make sure there is prosperity in rural America,” Johanns says.
According to Johanns, many farmers and ranchers are doing things every day that may qualify for a research and development tax credit.
“This is no longer about white coats and laboratories,” he says. “This really is about everyday things farmers and ranchers do to improve their process, to improve their herd, to improve their feed rations and to improve the productivity of their land.”
Now granted, Johanns has an incentive to tout the research and development tax credit. He currently serves as the chairman of agriculture for Alliant Group. That company provides tax and consulting services for small and midsized businesses. Its roster includes an impressive collection of former lawmakers and business executives. Still, Johanns says it’s the ability to help farmers that motivates him.
“This is a great opportunity for folks I’ve worked with for many decades in agriculture,” he says.
For example, he says if a corn or soybean farmer decides to do different things with tillage or experiment with seed varieties, that farmer could be eligible for an R&D tax credit. Not only that, if the farmer can show they’ve been implementing practices for a while, they may even be able to have their previous tax returns amended. This can bring a welcome, unexpected infusion of cash
A recent court case ruled that the cost of seed a farmer put into crops attempting to increase productivity qualified for an R&D tax credit.
Johanns advises producers unsure of what tax credits they qualify to meet with an expert and discuss their operation. Based on the conversation, the producer may get tips on how they could earn the R&D tax credit. They also may learn they already qualify for one.
On many occasions, farmers have told Johanns the practices he’s talking about are things they are already doing. He says that’s exactly the point. There are plenty of things that qualify for an R&D tax credit. The key is understanding how to get it. Johanns sees his job as educating people on so they can maximize their profitability.
“It’s been so exciting to be involved with this and we’ve just had such an impact out there,” he says. “The research and development tax credit really works. It works great for agriculture.”
Featured Leadership
Mike Johanns was the U.S. Secretary of Agriculture from 2005-2007 as well as the Governor of Nebraska from 1999-2005 and the state’s U.S. Senator from 2009-2015. As alliant’s Chairman of Agriculture, Johanns brings more than 30 years of experience at virtually every level of government and a strong background in both agriculture and economic development. As the Secretary of Agriculture, he managed 18 different agencies, opened or expanded access to 40 international markets and was responsible for multiple agricultural breakthroughs as a negotiator for the Doha Development Round.
