IRS Section 180 gives agricultural landowners a way to capitalize on the value of the excess or “residual” soil fertility they purchased or inherited.
The excess nutrients are treated like a depreciable asset. Advanced Agrilytics puts deductions at an average of $1,200 per acre of land actively used in farming, which comes to roughly $559,200 on an average 466-acre farm.
Who qualifies
A qualified taxpayer meets all four of these.
- Operate an active production agriculture business
- Own land actively used for crop production, timber, or livestock
- Have nutrients properly analyzed and documented above field-specific baselines
- Have acquired land through purchase or inheritance since 1960
What the report gives your accountant
RFV takes complex agronomy and tax requirements and turns them into clean, traceable, accountant-ready documentation.
- Sample-by-sample fertility calculations
- Agronomic critical levels specific to each sampling location
- Element-level pricing backed by historical data
- Fully traceable documentation designed to support IRS expectations
- A clear, guided process so growers know exactly what's needed
How the number is reached
- Critical level
- The soil test value at which adding more of a nutrient no longer improves yield. Everything above that line is the excess the deduction rests on, and it is calculated for each sampling location rather than averaged across a farm.
- Element-level pricing
- Nutrients are priced from a ten-year, month-by-month pricing database maintained with a global market research firm, including FOB to the U.S. costs, rather than from a call to a local retailer.
- One report per field
- Each report carries soil test results from certified labs, the critical levels and excess nutrient calculations, and documentation of the methodology behind the analysis. Every data point is traceable and auditable.
Find out what your ground already carries.
Talk to an expert Advanced Agrilytics9225 Priority Way West Drive, Suite 100
Indianapolis, IN 46240
(317) 397-0350
RFV@advancedagrilytics.com