Farming Smarter: When Problems on the Farm Count as SR&ED
Agriculture & Farming, Canadian SR&ED Case Study
Introduction
Every farmer knows the cycle. You try something new, it doesn’t work the way you hoped, and you try again. A different seeding method, a new feed, a better way to store the crop.
What many farmers don’t realize is that this trial and error may count as SR&ED work, and part of what it cost could come back as a tax credit.
We often hear, “We’re farmers, not scientists. We just kept trying until it worked.” But when the answer isn’t in any guide and your team must test its way to it, that is exactly the kind of work the Scientific Research and Experimental Development (SR&ED) program supports.
What SR&ED Looks For
In plain terms, a project is likely to qualify when:
- Your team faced a technical problem that couldn’t be solved with existing knowledge or standard practice.
- They worked through it systematically: forming an idea, testing it, studying the results and adjusting.
- The goal was to learn something new about the science or technology, not just to make or sell a product.
Four Farming Scenarios That May Qualify
1. Keeping stored potatoes from sprouting. A farm wanted to move away from a chemical sprout inhibitor. Natural alternatives worked in small tests but gave uneven results in a full storage room. The team tested application timing, airflow and temperature to find out why, and what it would take to get consistent control across the whole pile.
2. A feed that cut emissions without cutting milk. A dairy farm wanted to lower methane from its herd by changing the ration. The first feed changes reduced emissions, but milk yield and butterfat dropped with them. The team tested different ingredients, inclusion levels and feeding schedules, tracking both emissions and production, to find a balance nobody had worked out for their type of herd.
3. Seeding a cover crop into a standing crop. A grain farm modified its equipment to plant a cover crop between corn rows before harvest. Seed placement was uneven, and germination was poor under the corn canopy. The team adjusted the unit design, seeding depth and timing over several seasons to get a stand that established reliably.
4. Drying grain without damaging it. After a wet harvest, a farm found that its usual drying settings were cracking the kernels and lowering grade. Slower drying protected quality but created a bottleneck. The team tested temperature profiles, airflow and staged drying to find out how fast the grain could be dried without losing value.
What Usually Doesn’t Qualify
- Comparing commercially available varieties to decide which one to plant
- Following standard agronomy advice or routine soil testing
- Buying and installing equipment that works as the supplier specified
- Routine herd health and veterinary care
- Expanding acreage or herd size once a method is working
- Certifications, market research, sales and commercial production
Conclusion
The difference comes down to one question: did your team know the answer at the start of the project or problem? In the scenarios above, they didn’t, and they had to experiment to find it. In the second list, the answer was already known or could be worked out using standard practice.
You may also think you don’t have documentation. Keep your field notes, yield maps, storage logs, feed records and even the photos you took of the patch that didn’t grow. They show the problem was real and the answer wasn’t obvious.
Now think about your last 12 months or your last fiscal year. Did a crop, herd or storage problem take more than one season to solve? Did you build or modify equipment because nothing on the market did the job? Did you have to replace an input and find a new way to get the same result? These are the kinds of technical challenges where SR&ED begins.
Not sure where to start? We can help you identify and track eligible activities, optimize your SR&ED claim, and explore additional funding for costs not covered by SR&ED tax credits.
If this sounds like your experience, it’s worth a conversation before your filing deadline rather than after.
Our team brings decades of combined experience in successfully preparing and filing SR&ED claims for clients year after year.
For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.