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By Mike Johanns, alliantgroup Chairman of Agriculture; Former U.S. Secretary of Agriculture
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It’s been nearly a decade since Mike Johanns retired from politics. That doesn’t mean he’s detached from policy. The former Secretary of Agriculture says his life’s love and passion has always been for agriculture.
That’s probably not surprising since he grew up on a Nebraska farm. He also dedicated much of his public service career to addressing ag issues. That included time on the Senate Agriculture Committee working on a new farm bill in the early 2010s. Like nearly everyone else, he’s not optimistic about a new farm bill happening this late into an election year.
“I’d bet on an extension before I’d bet on negotiating leading to a new farm bill,” he says.
Johanns served as Secretary of Agriculture during George W. Bush’s second term. Before that he was twice elected Governor of Nebraska, the first Republican to win the statehouse in more than 40 years.
He left politics in 2015 after serving one term in the Senate. These days, he’s reaching out to farmers to tell them how a federal research and development tax credit can help their operations.
Those tax credits were first championed by President Ronald Reagan in the 1980s. They were part of a bipartisan effort to keep manufacturing jobs from going overseas. Over the years, subsequent administrations and congressional lawmakers have expanded the tax credits making more people in different industries eligible.
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 alliantgroup’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.
Tim Taschner, Associate Director, is a leader of alliantgroup’s R&D and ERC practice. Tim and his team specialize in serving the agriculture and life science industries at alliantgroup. Under Tim’s direction, the team has helped clients ranging from livestock producers and row crop farmers to dental laboratories and pharmaceutical companies claim over $500 million in federal and state tax incentives.
