Inside Agriculture’s Turning Point: Mike Johanns on Policy, Profitability, and the Future

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.

Facts Only

* Mike Johanns is the chairman of Ag for the Alliant Group.
* The interview was conducted with Nick Papagni on AgNet West Hour.
* Agriculture is experiencing a mixed landscape of challenges and opportunities.
* Commodity markets are struggling, particularly for row crop producers.
* California’s wine industry is facing demand issues.
* The Research & Development (R&D) tax credit is a key opportunity for farmers.
* Farmers can amend past tax returns until July 6, 2026.
* Immediate expensing of R&D costs is available.
* Credits can be carried forward for up to 20 years.
* State-level benefits are available in places like California.
* Farmers are encouraged to reach out to Alliant Group for assistance.
* Agricultural technology, including GPS-guided equipment and autonomous tractors, is transforming the farm.
* U.S. agriculture needs to strengthen global trade relationships and expand biofuels.
* Leadership and engagement from farmers and policymakers are vital.

Executive Summary

Agriculture is currently facing a period of considerable strain, evidenced by tight margins for row crop producers battling rising input costs and significant demand issues within sectors like California’s wine industry. While the cow-calf industry remains robust, this broader picture highlights the cyclical and evolving nature of the sector. The interview with Mike Johanns emphasizes the potential of the R&D tax credit as a significant financial opportunity for farmers, particularly those engaged in activities like improving crop yields or enhancing livestock genetics – a benefit further enhanced by recent legislative changes. Johanns argues that profitability is the key to securing the future of farming, driven by a fundamental need for sustainable margins rather than simply passion. He outlines a need for greater engagement from farmers at the local and state levels alongside increased leadership. Looking ahead, Johanns stresses the importance of diversifying into global markets and exploring biofuels, alongside continued investment in agricultural technology and robust farm programs.

Full Take

**Steelman:** Johanns presents a pragmatic assessment, framing the current situation as cyclical but evolving, focusing on profitability as the solution. The R&D tax credit narrative is strategically positioned to address a significant pain point for farmers – financial constraints – offering a tangible pathway to mitigation. The emphasis on technology is framed as a necessity, not an optional luxury, aligning with broader narratives of global food security.
**Pattern Scan:** ARC-0024 Ambiguity - The language around "opportunities" and "value" feels subtly designed to obscure the underlying precariousness of many farm businesses. The constant redirecting to the R&D tax credit seems an attempt to shift blame for profitability issues away from fundamental market forces.
**Root Cause:** This narrative is rooted in a neoliberal economic paradigm—emphasizing individual responsibility and market-driven solutions. It operates under the unspoken assumption that farmers are primarily rational economic actors, a potentially reductive view of a profession deeply intertwined with tradition, risk, and social relationships. It echoes a recurring pattern of appealing to innovation as a panacea, while simultaneously downplaying systemic issues like consolidation and market manipulation.
**Implications:** The framing of profitability as the ‘key’ risks further normalizing the pressure on farmers to treat agriculture solely as a business venture, potentially eroding the social and ecological values traditionally associated with it. The emphasis on individual action ignores the significant influence of global trade agreements and governmental policies.
**Bridge Questions:** Is the focus on individual profitability truly sustainable in a system where global markets are increasingly volatile? What systemic changes are needed to ensure a more equitable and resilient agricultural landscape? Could we design a narrative that prioritized ecological stewardship alongside economic viability?
**Counterstrike Scan:** The playbook for a coordinated influence campaign around this narrative would likely involve amplified messaging emphasizing “innovation” and “efficiency” alongside strategically targeted “just asking questions” aimed at discrediting criticism of market forces. The campaign would exploit the inherent tension between tradition and progress, subtly undermining any critique of established systems. The structural alignment is concerning: the narrative subtly shifts responsibility from systemic issues to individual farmer actions, a common tactic to diffuse attention away from broader challenges.