When farmland changes hands, the buyer pays for more than the acres themselves. The purchase may also include nutrients built into the soil through years of fertilizer applications. However, a residual fertility valuation should not treat all nutrients in the soil as deductible value. The focus is the excess fertility above what that specific ground needs to produce.

In “The Excess Is the Deduction,” Advanced Agrilytics’ Jeremiah Windell explains why establishing the right field-specific critical level is central to a defensible residual fertility valuation. He explores the risks of relying on regional averages or generalized benchmarks and outlines how point-level soil data, laboratory methods, and acquisition-date pricing contribute to documentation a landowner’s CPA can evaluate.

Published by Land Investor, a Fay Ranches platform providing practical information for people who own, work with and invest in land, the article offers a detailed look at the agronomic measurement behind Section 180 documentation. Read the full article to understand why the right-sized, supportable valuation matters more than simply producing the largest number.