American agriculture is at a crossroads—and few voices carry more insight than former U.S. Secretary of Agriculture, the former Nebraska governor, and now he’s the chairman of Ag for the Alliant Group, Mike Johanns. In a compelling conversation with AgMeter, Nick Papagni on the AgNet West Hour, Johanns delivers a candid look at the challenges farmers face today and the opportunities that could shape the next generation of agriculture.
From struggling commodity markets to emerging tax advantages and global trade dynamics, this interview is packed with real-world insight every producer should hear.
A Tough Time Across Agriculture
Johanns doesn’t sugarcoat the current landscape. While some sectors—like the cow-calf industry—are seeing record strength, much of agriculture is under pressure.
Row crop producers are battling tight margins as input costs continue to climb, often offsetting any gains in commodity prices. Meanwhile, specialty sectors like California’s wine industry are facing serious demand issues, with reports of unharvested grapes and even vineyards being removed to rebalance supply.
It’s a stark reminder that agriculture is cyclical—but also evolving.
Why Profitability Is the Key to the Future
One of the most powerful moments in the interview comes from a story Johanns shares about a young FFA member. When asked how to keep the next generation on the farm, the answer was simple: profitability.
That message drives much of Johanns’ work today.
Farmers don’t lack passion—they need sustainable margins to continue. Without profitability, even the most dedicated producers may be forced to step away.
R&D Tax Credits: A Game-Changer for Farmers
A major focus of the discussion is the Research & Development (R&D) tax credit—an often-overlooked opportunity that Johanns says is already returning tens of millions of dollars to farmers nationwide.
Many producers don’t realize that everyday activities may qualify, including:
- Improving crop yields and soil practices
- Enhancing livestock genetics and feed efficiency
- Experimenting with new technologies or production methods
Recent tax court rulings have confirmed that agriculture qualifies for these credits, and new legislative updates have made them even more valuable.
Key benefits include:
- The ability to amend past tax returns (deadline: July 6, 2026)
- Immediate expensing of R&D costs
- Carryforward of credits for up to 20 years
- Additional state-level benefits in places like California
For farmers navigating tight margins, this could be a critical financial lifeline.
“We don’t charge for that. We just do that because we want to get that benefit to every farmer we can. And if it is a case where the farmer doesn’t qualify, we’ll say that.
How do you get involved and how do you figure out if they’re qualified for this?
“Very simple. Reach out to us. Again, it’s Alliant Group in Houston.
You know, we don’t want to waste their time. But we have found over and over again that farmers do qualify because the things they are doing are science-based. They’re discovery-based.
They’re trying to figure out how do I improve production? How do I improve cropping practices? How do I improve the genetics in my cattle herd?”
Technology Is Transforming the Farm
Johanns also highlights the rapid advancement of agricultural technology—from GPS-guided equipment to autonomous tractors capable of operating around the-clock.
These innovations are not just about efficiency—they are essential to feeding a growing global population.
But with innovation comes challenges, especially in highly regulated states where adoption can be slowed. Even so, Johanns is clear: the future of agriculture will be driven by technology, data, and smarter systems.
Trade, Biofuels, and Global Competition
Looking ahead, Johanns outlines key priorities for U.S. agriculture:
- Strengthening global trade relationships to stay competitive with countries like Brazil
- Expanding biofuels, including aviation fuel markets
- Investing in research and development
- Maintaining strong farm programs and crop insurance
Without access to global markets, he warns, U.S. agriculture risks falling behind.
A Call for Leadership and Engagement
Beyond policy, Johanns emphasizes the importance of leadership—both in government and within rural communities.
He urges elected officials to better understand agriculture and communicate honestly with constituents. At the same time, he calls on farmers to stay engaged, vote, and participate in shaping policy at the local and state level.
Change, he notes, often starts closer to home than people realize.
Don’t Miss the Full Conversation
This interview with the AgMeter goes far beyond headlines—offering practical advice, policy insight, and real-world perspective from one of agriculture’s most experienced leaders.
Whether you’re a farmer, rancher, agribusiness professional, or simply care about the future of food production, this is a conversation worth your time.
👉 Listen to the full interview with the AgMeter, Nick Papagni on AgNet West Hour to hear everything Mike Johanns had to say.