Federal Tax Updates Deliver Big Benefits for Ranchers Investing in Fencing

Gallagher Animal Management is alerting U.S. ranchers to an important new tax opportunity that could significantly reduce the cost of installing agricultural fencing. Recent updates to federal tax rules now allow qualifying fencing used in agricultural production to be fully expensed in the year it is placed in service. 

For ranchers who have been considering upgrades or expansions, this development makes it an ideal time to invest in fencing systems designed to stand up to real ranch conditions.

Under these updated guidelines, which have been endorsed by the National Cattlemen’s Beef Association (NCBA), ranchers may be able to claim full expensing through Section 179 or take advantage of 100% bonus depreciation. Both provisions are designed to give agricultural businesses more flexibility in managing capital investments. For fencing used directly in livestock management or crop protection, this can translate into meaningful savings and faster financial return. Ranchers should review their situation with a tax professional to determine which option best fits their operation.

Gallagher fencing systems, known for strength, reliability, and long-term performancefit naturally into this opportunity. With the ability to fully expense qualifying fencing, ranchers can renew their infrastructure, establish new grazing areas, or replace aging systems with confidence and reduced upfront financial pressure.

Not all fencing qualifies under the federal rules, and eligibility depends on how the fencing is used. Systems intended for livestock containment, pasture management, or crop protection generally meet the criteria, while ornamental or non-agricultural fencing may not. Because each operation is different, Gallagher encourages ranchers to consult their tax advisor for guidance tailored to their property and business.

For those who would like to review the provisions directly, details can be found on the IRS website. 

Gallagher has supported generations of ranchers with solutions that help them work safely, efficiently, and with peace of mind. This new tax advantage offers yet another reason for producers to invest in fencing built to last and backed by a global leader in animal management.