Navigating the Farm Employer Overtime Credit Advance

Running a farm isn’t just about hard work in the fields—it’s also about managing people, payroll, and navigating an ever-changing regulatory landscape. With recent developments in New York State policies, it’s crucial for farm owners and employers to stay informed and prepared.

What is the Farm Employer Overtime Credit Advance?

New York State has introduced the 2025 Farm Employer Overtime Credit Advance to help farm owners stabilize operations and retain workers amid rising labor costs.

With the overtime threshold for farmworkers gradually decreasing, this program offers a refundable tax credit for overtime wages paid. If you’re a farm employer, here’s what you need to know:

• Eligible farm employers can receive financial relief for overtime wages paid between January 1 and July 31, 2025.

• By September 30, 2025, farmers must submit supporting payroll documentation and complete their application for the advance payment.

• For those approved, funds will be available for request starting November 1, 2025, providing timely cash flow support as the year comes to a close

The New York State Department of Agriculture and Markets is encouraging farmers to apply early and take advantage of this support. Keeping accurate records of work hours, overtime, and tax documentation will be essential to making the most of this program.

Farm Employer Overtime Credit Advance Phase-In Schedule

If you had employees who worked overtime in a given week, you may be eligible to receive a tax credit. The program began in 2024, and the phase-in amounts are as follows: 

• On January 1, 2024, the overtime credit starts at 56 hours but no more than 60.
• On January 1, 2026, the overtime credit starts at 52 hours but no more than 60.
• On January 1, 2028, the overtime credit starts at 48 hours but no more than 60.
• On January 1, 2030, the overtime credit starts at 44 hours but no more than 60.
• On January 1, 2032, the overtime credit starts at 40 hours but no more than 60.

Staying Informed and Prepared

Navigating these changes requires staying informed and proactive. Farmers should take time to review available resources, consult with financial and payroll experts, and explore programs that can provide financial relief. Whether it’s adjusting payroll processes to align with new overtime laws or evaluating the effects of trade tariffs on supply chains, preparation is key.

By staying ahead of these developments, New York farmers can continue to adapt and thrive despite the evolving economic landscape.