One of the most overlooked but potentially lucrative tax breaks for farmers, the Section 180 deduction can mean tax deductions averaging $1,200/acre for every acre of land actively used in farming. And, this deduction applies to anyone who has bought or inherited land as far back as 2010.
Section 180 isn’t a new farm tax deduction—it’s been in the U.S. tax code since 1960. But farmers and other agricultural landowners often miss or skip claiming the write-off for three reasons:
With average tax desuctions of $1,200+ per acre, the average American farm, at 466 acres, could see a one-time deduction of $559,200.
IRS Section 180 gives agricultural landowners a way to capitalize on the value of the excess or “residual” soil fertility they purchased or inherited.
It recognizes what agricultural landowners know: residual soil fertility has a measurable economic value, and that value isn’t static.
In the context of Section 180, excess nutrients are treated like a depreciable asset.
If land you’ve bought or inherited shows residual fertility, it means nutrient levels in the soil at the time of acquisition exceeded what crops need for a normal yield.
Zinc
Manganese
Copper
Nitrogen
Phosphorus
Potassium
Sulfur
Calcium
Magnesium
Iron
Boron
This example shows what residual calcium can look like:
You might see Section 180 called a Residual Fertility Deduction, an Excess Fertility Deduction, or a Legacy Nutrient Deduction. Those are all different names for the same thing: how the IRS treats the depreciation of higher-than-baseline amounts of soil fertility.
As crops grow, excess fertility is consumed. By documenting it, you may be able to claim farm tax deductions.
If you operate an active production agriculture business on land that has excess residual fertility, you may be eligible for a Section 180 tax deduction.
Owns land actively used in the business of production agriculture
Used to produce crops, timber, or other ag products; or sustain livestock
Properly analyzed and documented, above a field-specific baseline
Land acquired via purchase or inheritance since 1960
At Advanced Agrilytics, our team of 100+ agriculture experts includes agronomists and soil experts who specialize in the science of residual fertility.
Section 180 claims are a space where our expertise shines.
Advanced forensic agronomy at sub-acre resolution—deep soil science that quantifies, attributes, and defends residual soil fertility.
The Residual Fertility Valuation Report, built to IRS evidentiary criteria with patented sub-acre spatial modeling and laboratory soil chemistry.
Unbiased, science-backed analysis documented to withstand IRS scrutiny, so your tax team can file with confidence.
Advanced Agrilytics’ approach is accurate, transparent, and traceable, based on point-level soil data, nutrient-specific critical levels, and over a decade of verified pricing history.
We’re here to provide the expert soil science and support needed to turn residual fertility into properly filed Section 180 deductions.
Our team makes it easy to get started and get your claim completed.
There’s no cost and no commitment. We review information you share and let you know if your land qualifies for Section 180. We do not share data.
