IC-DISC for Agriculture Exporters
Your Agricultural Exports Are Leaving Tax Savings on the Table
If your company exports grain, oilseeds, cotton, livestock genetics, or processed food products, the IC-DISC program could save you $100,000 or more per year in taxes. It's a legitimate tax incentive that's been in the Internal Revenue Code since 1971, and most agricultural exporters have never heard of it.
Agriculture Exporter Savings Example
Based on ~2.3% of qualified exports, net of fees. Actual savings vary.
Why Agriculture Exporters Are Ideal IC-DISC Candidates
The U.S. is the world's largest agricultural exporter. American farms and food processors check every box for IC-DISC eligibility, and high export volumes mean substantial savings.
Inherently U.S.-Sourced
Agricultural products grown, raised, or processed in the United States inherently meet the 50% U.S. content requirement. American-origin crops and livestock naturally qualify.
Large Export Volumes
U.S. agricultural exports exceed $150 billion annually. Farms, cooperatives, and processors shipping internationally often far exceed the $3 million threshold where the IC-DISC becomes highly beneficial.
Family-Owned Operations
Most U.S. farm operations and agricultural processors are family-owned or closely-held businesses. That's exactly the ownership structure where the IC-DISC delivers the greatest tax savings.
Recurring Export Revenue
Agricultural exports are seasonal but recurring. Grain harvests, livestock shipments, and food processing contracts generate steady export revenue, meaning IC-DISC savings compound year after year.
What Agricultural Exports Qualify?
Qualified exports are products containing more than 50% U.S. content, sold to an ultimate destination outside the United States. For agricultural exporters, this typically includes:
- Grain & cereals:wheat, corn, rice, and other grains
- Oilseeds:soybeans, sunflower seeds, and processed oils
- Cotton & fiber:raw cotton and processed fibers
- Livestock genetics:semen, embryos, and breeding stock
- Processed food & animal feed:value-added agricultural products
- Indirect exports:sales to grain traders or elevators who then export
Note: Even if you sell to a domestic grain trader, elevator, or cooperative that then exports the product, those sales may qualify as indirect exports for IC-DISC purposes. This is an area where many agricultural operations are leaving money on the table.
Quick Qualification Check
Export (directly or indirectly) $3M+ annually?
Products grown or processed in the U.S.?
Company is privately held?
If you checked all three, you're a strong candidate.
How We Work with Agriculture Exporters
Export Advisors has been exclusively focused on the IC-DISC since 2006. We handle everything: setup, administration, commission maximization, and compliance, so you can focus on running your agricultural operation.
We work alongside your existing CPA. No disruption to your current accounting relationships. Your CPA continues handling everything else while we handle the IC-DISC specialization.
Quick Assessment
We review your export activity to confirm eligibility and estimate savings.
IC-DISC Setup
We form the IC-DISC entity and establish the optimal commission structure.
Ongoing Administration
Proprietary systems keep your IC-DISC running smoothly year after year with annual optimization.
“Family farm operations and ag processors are often the perfect IC-DISC profile: U.S.-sourced product, privately held, and significant export volume. The savings are substantial.”
David Spray
Founder, Export Advisors