Advance Payments Help Farms Manage Rising Labor Costs

By Blake Jackson

The New York State Department of Agriculture and Markets has announced that the Farm Employer Overtime Credit advance portal is now open. This allows eligible farm employers to register and prepare documents needed to apply for overtime reimbursement later in 2026.

The Farm Employer Overtime Credit is a refundable tax credit that supports farm employers who pay overtime wages to eligible employees. Beginning in 2026, overtime hours will be calculated using a 52-hour threshold. This threshold will gradually decrease every two years until it reaches 40 hours in 2032.

The credit helps offset rising labor costs caused by economic pressures, supply chain challenges, and changing trade conditions.

State Agriculture Commissioner Richard A. Ball said, “Farm labor is one of the most critical issues for agriculture and we are working hard to ensure that farmers have the resources they need to support their workforce while meeting their food production goals.”

“This program, coupled with the State’s refundable tax credits, are providing real relief to the industry by offsetting increased labor costs and additional pressures stemming from supply chain disruptions, ongoing tariff changes, and cuts to important programs. I encourage our farmers to consider the overtime credit and its potential impact on their operations.”

A new catch-up credit is also available for eligible overtime paid between January 1, 2024, and December 31, 2025, when payroll services were handled through a Professional Employer Organization. Applications for this one-time credit must be submitted by February 1, 2026.

Farm employers are encouraged to prepare by creating a NY.gov ID, completing eligibility assessments, organizing payroll records, and registering through the online portal. Employers may also authorize representatives, such as tax professionals, to assist with applications.

From August 1 through September 30, 2026, employers may submit payroll records to apply for advance payments covering overtime paid between January and July. Approved applicants will receive certificates that allow them to request payments from the Department of Tax and Finance.

Additional resources, timelines, and guidance are available on state agriculture and tax websites. This initiative reflects New York’s continued efforts to strengthen agricultural operations and support a stable workforce across the state.

Photo Credit:gettyimages-pra-chid