Why America’s Farmers Are Struggling to File Their Returns

If you’ve ever walked the fields at dawn, fed cattle in the freezing dark, or watched your soybeans wilt during a drought, you know farming isn’t just a job—it’s a calling. But in recent years, the strain on American farmers has gone far beyond the soil. One of the lesser-known challenges facing today’s growers, ranchers, and family farms is the sheer difficulty of filing a tax return.

Yes—taxes. Amid crop failures, market volatility, and changing agricultural policy, tax season has become a quiet crisis for U.S. farmers. From Iowa to Ohio, from the dairy barns of Wisconsin to the cornfields of Nebraska, the paperwork is piling up, and it’s costing farmers more than time. It’s threatening their livelihoods.

A Broken System for a Changing Industry

Let’s be honest: the agriculture industry has never been simple. But in recent years, it’s become nearly impossible to navigate. Between the 2018 Farm Bill, the trade war, and climate change-fueled disasters like floods and droughts, American farm finances are anything but stable. Net farm income may be up one year and down the next, while commodity prices, export markets, and supply chains shift by the day.

This constant instability has a direct impact on tax filings. Unlike salaried workers, U.S. farmers often rely on dozens of revenue streams—everything from crop insurance payments and USDA subsidies to direct-to-consumer sales at a local grocery store or farmers market. Each one comes with a paper trail, and when your financial picture changes weekly, figuring out how to report it to the IRS can feel like solving a riddle with no answer.

Family Farms, Big Burdens

The complexity hits hardest for family farmers. Many of America’s farms are still family-run, passed down through generations. But these small farms often lack access to professional accountants or ag-specific tax experts. Instead, bookkeeping is squeezed in between calving season and harvest—or handed off to someone in the family who’s “pretty good with numbers.”

In rural communities, especially those hit by a federal funding freeze or USDA service center closures, finding reliable tax help is another hurdle. In towns across rural America, the closest CPA might be an hour away—and already booked solid during tax season. For small farms in Minnesota, Missouri, or Nebraska, even just gathering the right documents can take weeks.

The Paper Age in a Digital World

While the rest of the economy moves toward automation and AI, the agriculture sector often feels stuck in the paper age. Many U.S. farmers still rely on handwritten ledgers, paper receipts, and outdated software. The USDA, despite its efforts, has been slow to modernize its systems, leaving farmers to navigate a maze of websites, forms, and acronyms without clear guidance.

And let’s not forget: internet access in rural America is spotty at best. A USDA study in recent years showed that many rural areas still lack reliable broadband. That makes filing online tax forms—or even downloading necessary documentation —a real challenge. When you can’t even get a strong signal, how are you supposed to e-file your taxes?

Tariffs, Trade Wars, and Tax Time

The economic impact of U.S. agricultural policy under the Trump administration still echoes across the country. When President Donald Trump launched a trade war with China, American farmers were some of the first to feel the pain. Soybean exports dropped, markets dried up, and farm products piled up in storage.

To cushion the blow, the USDA rolled out bailout programs and ad hoc payments. While these checks helped in the short term, they created even more confusion at tax time. Were they taxable? How should they be reported? What about the impact on next year’s crop insurance? For growers already juggling low commodity prices, drought relief, and market uncertainty, the extra paperwork was the last straw.

The Collapse of Trust in Institutions

Many U.S. farmers feel forgotten. Between the consolidation of agribusiness, the rise of large farms, and shifting USDA initiatives, family farmers often feel sidelined. There's a growing sentiment that Washington, D.C., doesn’t understand what rural America really needs.

When trust in institutions erodes, so does compliance. If you’re not sure what the government is doing for you—or if you’re worried that filing a mistake-riddled tax return might bring an audit instead of assistance—you might put it off entirely. It’s not about defiance. It’s about being overwhelmed, under-resourced, and afraid to get it wrong.

Farm Bills and Moving Targets

Agricultural policy in America changes with every administration, and each farm bill adds new wrinkles to the process. From conservation programs to tax credits to disaster relief funding, understanding what qualifies and how to report it is a full-time job. But most family farms can’t afford to hire a farm financial specialist.

The 2018 Farm Bill expanded crop insurance options, added conservation incentives, and restructured various USDA loan programs. While good in theory, each change introduced new forms, deadlines, and reporting requirements. For many U.S. farmers, especially those in their 60s or 70s still running the books, the changes are hard to track—let alone apply correctly on a tax form.

The Consolidation Crisis

Another major force complicating taxes? Consolidation. As small farms disappear, big ag swallows up more land. This shift doesn’t just affect food systems—it reshapes the way taxes are filed. Larger operations often have corporate accountants, digital tools, and legal teams. Smaller farms, especially dairy farmers in Wisconsin or corn growers in Iowa, are left behind, struggling to figure it out on their own.

The irony? Family farmers are expected to operate like modern businesses without the infrastructure, training, or tools to do so. Tax filing becomes a burden not because farmers aren’t smart—but because the system was never designed with them in mind.

Shortages, Stress, and Mental Health

Tax time hits during a season already loaded with stress. In many parts of the country, it comes just before planting or calving season. It’s also when many growers are checking seed prices, calling lenders, and forecasting input costs.

Add to that the growing shortages in fertilizer, equipment parts, and even skilled labor, and you’ve got a recipe for burnout. Paperwork becomes just one more thing in a long list of worries. And when mental health suffers, everything does—including the ability to tackle complicated financial tasks.

Solutions Worth Fighting For

So what can be done? America’s farmers need support, and not just in the field. Here are a few ideas worth exploring:

1. Modernize USDA Systems

The U.S. Department of Agriculture should invest in digital infrastructure that makes it easier for growers to access, organize, and file their financial data—especially in areas where internet access is limited.

2. Expand Access to Tax Help in Rural Communities

Whether through federal funding or state-level initiatives, bringing more CPAs and farm financial advisors into rural areas is critical. Mobile tax clinics, online webinars, and farm-specific tax workshops could go a long way.

3. Fund Ag-Tech Tools for Small Farms

Technology shouldn’t be a luxury reserved for big operations. Grants, tax credits, or low-interest loans could help small farms invest in software that simplifies bookkeeping and tax filing.

4. Build Trust Through Transparency

Policy makers in Washington, D.C., need to engage directly with rural communities. Listening sessions, town halls, and clear explanations of how farm bills affect taxes would show that America’s farmers aren’t being left behind.

5. Offer More Flexible Filing Options

Not every farmer fits the mold of a W-2 employee. Tax codes should reflect the reality of seasonal labor, volatile income, and fluctuating expenses. The IRS could provide more flexible deadlines, pre-filled forms, or even specialized agents trained in agricultural finance.

Farmers Deserve Better

At the end of the day, tax season is just one more symptom of a bigger problem. America’s farmers—who feed this nation and the world—deserve a system that works for them. They need policies that reflect the volatility of the agricultural sector, tools that support their success, and leaders who understand their struggles.

This isn’t just about April 15. It’s about ensuring that rural communities, small farms, and the entire agriculture industry can survive the challenges of modern America. If the food system fails, so does the country. And if we can’t even get the paperwork right, we’re in deeper trouble than we think. That’s why you should keep your paperwork and financials in check with FarmRaise. At its core, FarmRaise streamlines farm financial management by offering a user-friendly bookkeeping tool tailored specifically for agricultural businesses. With FarmRaise, farmers can easily track income, expenses, and transactions in real time, all in one place. The system is designed to align with Schedule F categories, which simplifies tax prep and helps keep operations audit-ready year-round. While FarmRaise also connects farmers to a curated library of funding opportunities, including grants and cost-share programs, its biggest value lies in transforming farm records from a disorganized hassle into a powerful tool for decision-making, lender conversations, and long-term planning.

So to the family farmers in Iowa, the dairy farmers in Wisconsin, the soybean growers in Minnesota, and every rancher, beekeeper, and grower across rural America—your work matters. And your voice should be heard. Even during tax season.

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