Navigating Q4 Equipment Purchases: Farmers and Ranchers Weigh Tax Strategies as 2026 Harvest Moves Forward

Westfield, N.C. — October 20, 2026 — As the 2026 harvest tracks ahead of schedule and net farm incomes benefit from better market prices and substantial ARC/PLC payments across the U.S., agricultural producers are diving into year-end financial planning. While strong cash flow often sparks an immediate impulse to purchase equipment to reduce taxable income, agricultural tax experts are urging growers to carefully balance short-term tax strategies with upcoming operational realities.

Evaluating Year-End Expensing Options

For farmers, ranchers, and growers considering equipment purchases before the close of the tax year, understanding the available mechanisms under the tax code is essential—particularly following updates from the One Big Beautiful Bill Act signed into law in 2025.

Producers evaluating year-end purchases typically look at three primary depreciation pathways:

• MACRS Depreciation: The Modified Accelerated Cost Recovery System allows businesses to recoup the cost of equipment over multiple scheduled years. Ward notes this can be particularly advantageous in low-income years when producers prefer to spread out deductions rather than absorb them all at once.
• Section 179 Expensing: Section 179 provides the flexibility to expense the total or partial cost of qualified business purchases (such as farm vehicles and machinery) immediately to lower taxable income. The One Big Beautiful Bill Act permanently and substantially increased the annual limit to $2.5 million, indexed for inflation, allowing producers to target specific equipment needs without over-committing.
• Bonus Depreciation: Offering 100% first-year write-offs, bonus depreciation allows full expensing of eligible assets. However, tax professionals point out critical distinctions: bonus depreciation does not allow partial write-offs, and choosing bonus depreciation on one asset within a class requires applying it to all equipment purchased within that entire asset class.

“As harvest activities wrap up and agricultural producers finalize their year-end strategies with tax specialists, we recommend consulting local financial advisors to align capital investments with individual cash flow and operational goals for the year ahead,” notes Patrick Driscoll, CEO of The Certified Agriculture Group. "Just because you can write down taxable income by $2.5M, doesn't mean you should, especially knowing the road ahead could be a little bumpy. Ask your tax advisor if spending just part of that $2.5M on smaller equipment, like trucks or any of our AgPack Partner products, would be a good strategy."

Maximizing ROI: Why Adding AgPack Makes A Pickup Truck Purchase An Even Better Idea

For growers, ranchers or farmers planning to add a new or qualifying pre-owned truck or SUV to their operation to utilize Section 179 before year-end, combining the purchase with AgPack transforms a standard tax strategy into a Grand Slam home run.

Available exclusively through Certified Agriculture Dealerships, AgPack⁺ is a complimentary bundle of farm and ranch product discounts, rebates, and management services. Valued at as much as $48,000 (with average historical customer savings reaching nearly $20,000), AgPack* provides practical, bottom-line relief across everyday agricultural inputs—including exclusive savings on farm equipment, tires, and operational supplies.

“By pairing a tax driven vehicle purchase, with the stackable benefits of AgPack, growers can capture Section 179 tax relief while simultaneously lowering overhead costs for the upcoming crop year. It’s a double dip ... I mean a win-win that's never existed before” Driscoll jokingly noted.

*Based on customer using every AgPack benefit to its maximum value. In the first half of 2025, AgPack redemption savings averaged $21,525 per truck that farmers and ranchers purchased. Visit GetAgPack.com for full program details.

+ AgPack has no cash value that can be applied, in whole or part, to the actual purchase of the vehicle. Nor does AgPack affect the final price of the vehicle in anyway.