Hi @Tubotaxquestion - thanks for writing in.
There is no hard and fast limit on how many years in a row a farm can show a loss.
The IRS may question whether you are in the business of farming to make a profit or whether it is a hobby. There are many factors that go into the determination of whether something is a hobby or a business.
The IRS has a safe harbor under Section 183(d) which states that if you made a profit in three out of five years, you are presumed not to be a hobby. However, this is a safe harbor, meaning it is not a requirement. It does not apply in reverse - in other words, if you didn't make a profit in three out of five years, that has no specific impact on whether you are a business or a hobby. It just means you didn't qualify as a business under the safe harbor. But many businesses don't make a profit in three out of five years, especially in farming. There are lots of ways to qualify as a business even without making a profit. I would read the document I linked above and see if most or all of these factors apply to your farm. If so, then you are likely a business. As a business, you can continue deducting losses in the years where you have them.
In my experience preparing farm returns, many farms show a tax loss more than three out of five years and aren't necessarily asked to justify that they are not a hobby. The IRS recognizes that farming is a tough way to make a living.
I hope this information is helpful.
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