Farm Meal Deductions Changing in 2026: What Producers Should Know
Providing meals to employees during busy times like planting and harvest has long been part of farm operations. For many farms, it’s simply part of keeping crews working efficiently during long days in the field.
However, tax rules surrounding these meals have changed over the past several years—and another change is scheduled to take effect in 2026.
How the Tax Cuts and Jobs Act Changed Meal Deductions
When the Tax Cuts and Jobs Act (TCJA) was passed at the end of 2017, it made several changes to how meal expenses could be deducted for tax purposes.
Before this law, many farmers were able to deduct 100% of meals provided to employees, particularly when those meals were provided on-site for the convenience of the employer during busy seasons like planting or harvest.
The TCJA changed that rule.
Beginning January 1, 2018, meals provided to employees including meals connected with harvest crews, planting crews, or farm labor generally became only 50% deductible.
This change also applied in situations where farmers were providing both lodging and meals for employees, and in some cases even applied to meals provided to the farm operator.
Another Change Coming in 2026
The TCJA provision was temporary.
Under the current law, the deduction for these meals is scheduled to expire after December 31, 2025.
Beginning January 1, 2026, meals provided to employees in these situations will no longer be deductible at all.
Farmers will still be able to provide meals to employees during harvest, planting, or other busy times if they choose to do so. The difference is that those costs will no longer reduce taxable income.
Could Congress Change the Rule?
Tax law often evolves, and it’s possible that Congress could revisit this provision before the end of the year.
Lawmakers could choose to:
Restore a partial deduction, or
Reinstate the full deduction that existed prior to 2018.
However, until any changes are passed, the current law indicates that these meals will become non-deductible starting in 2026.
Planning Ahead
For many farms, the cost of providing meals during busy seasons may not be significant enough to change operations. But it’s still important to understand how the tax treatment of these expenses is changing.
As we move closer to 2026, farmers may want to review how these costs are recorded and how they impact overall tax planning.
Staying informed about upcoming tax law changes can help farm operations avoid surprises and make better financial decisions.
Steinke & Company
