# A Bumper Crop Can Wipe Out Social Security > Oregon hazelnut growers face a tax trap when good harvests trigger federal benefit withholding rules most farmers never expect. - Title: A Bumper Crop Can Wipe Out Social Security · 24/7 Wall St. - Summary: Oregon hazelnut growers face a tax trap when good harvests trigger federal benefit withholding rules most farmers never expect. Farmers under full retirement… - Keywords: social security, retirement earnings test, hazelnut farming, oregon agriculture, self-employment income, early filing reduction, schedule j, farm income averaging, benefit withholding, Bumper, Crop, Wipe - Source: 24/7 Wall St. — https://247wallst.com/personal-finance/social-security/2026/09/19/oregon-hazelnut-prices-rebounded-more-than-60-at-63-a-bumper-crop-can-zero-his-social-security-check-for-over-a-year - Author: Gerelyn Terzo - Published: 2026-09-20T00:04:35+00:00 - Read time: 2 min - Topics: social security, retirement earnings test, hazelnut farming, oregon agriculture, self-employment income, early filing reduction, schedule j, farm income averaging, benefit withholding ## Hazelnut prices surge 67 percent Oregon hazelnut prices rebounded to $2,800 a ton last season after years of thin harvests. A single bumper crop can suddenly generate taxable income that dwarfs the previous three seasons combined. > Oregon hazelnut prices rebounded 67% last season, to $2,800 a ton ## The retirement earnings test kicks in At 63, a hazelnut grower collecting Social Security faces the retirement earnings test. In 2026, anyone below full retirement age can earn $24,480 before benefits start withholding, with $1 held back for every $2 above the limit. > In 2026, someone below full retirement age can earn $24,480 before Social Security starts withholding benefits ## One year's excess wipes out all checks If a farm nets $84,000 in self-employment income, that's roughly $59,500 over the limit. Enough excess to eliminate every monthly check for the entire calendar year, with no carryover to future years. > enough excess to swallow every check in the calendar year ## Tax averaging doesn't help Social Security Schedule J lets farmers average income across three years for tax purposes, potentially saving thousands. But the Social Security Administration counts the full 2026 crop in 2026, regardless of how the tax return spreads it. > the Schedule J election leaves net earnings from self-employment exactly where they were ## Taxable benefits spike too A large farm year pushes combined income past taxability thresholds, making up to 85 percent of Social Security benefits taxable. Averaging helps the tax rate but leaves the taxability line untouched. ## Withheld benefits return at full retirement age At full retirement age (67 for those born in 1960 or later), Social Security recalculates the monthly check and removes the early-filing reduction for every month benefits were fully withheld. The cash-flow gap in the harvest year is real. ## Leasing land changes the equation A grower who scales back and leases the orchard to a neighbor avoids the earnings test entirely. Rental income from farmland is excluded as long as the farmer stops materially participating in the operation. > rental income from farmland is excluded from the earnings test ## Plan before the crop check arrives Three moves matter before harvest settles: calculate net self-employment income against the $24,480 limit, time deductible expenses to pull down this year's net, and model the full year with a farm accountant before the payment arrives. > A fall conversation with a farm accountant, before the payment settles, is worth more than the same conversation in March ## Key takeaway Farmers under full retirement age who file for Social Security early can lose all benefits for a year if a single large harvest pushes earnings over the federal limit, even though tax-averaging rules don't help on the Social Security side.