The IRS has long recognized that soil fertility is part of the value of farmland. When you purchase land, you aren’t just buying acres—you’re also buying the nutrients in the soil. That fertility has always been considered part of the land’s value and is reflected in the sale price you paid. For growers who purchased land within the last 15 years, the excess fertility present at the time of purchase or inheritance can be documented and treated as a legitimate tax deduction.
If it’s not new, why have I never heard of “Section 180”
Despite being recognized for decades, this deduction is rarely discussed. Many growers, and even some accountants, aren’t aware of it because:
It’s part of longstanding tax guidance, not a loophole or new idea. Always consult a tax professional about your situation.
A 1990s ruling spelled it out clearly: fertility can be deducted when it’s documented at the nutrient level.
You didn’t just buy acres, you bought nutrients. The deduction reflects what was in your soil the day you purchased it.
The deduction doesn’t add or inflate anything, it simply calculates the fertility you purchased but haven’t yet documented.
Every value is tied to:
There’s no guessing or averaging.
It means the valuation can be traced, audited, and explained point-by-point. Our documentation shows the baseline, the excess fertility, the nutrient price, and how the calculation was made, with no black boxes.
RFV takes complex agronomy and tax requirements and turns them into clean, traceable, accountant-ready documentation. Growers don’t have to guess what’s needed, we guide the process.
No. The IRS doesn’t audit more often just because someone claims a fertility deduction. What they expect is clear documentation. RFV is built to meet that standard, every value can be traced back to soil data, critical levels, and nutrient pricing. It’s one of the few approaches designed to be fully audit-defensible.
Many growers do, and RFV works alongside those deductions. What matters is that each deduction is legitimate and well-documented. RFV provides some of the strongest documentation available, which is why growers who already take significant deductions often feel more confident adding this one.
Residual Fertility Valuation (RFV) is Advanced Agrilytics’ way of helping growers document the fertility they already own — accurately, transparently, and in a format accountants can use.
The RFV Report provides:
You’re not the only one digging into how “Section 180” works. Whether you’re brand new to the idea or ready to understand the science behind the numbers, these two recorded webinars are the best place to start.
Do you have questions about Section 180 tax deductions? Learn how Advanced Agrilytics’ Residual Fertility Valuation program can help you claim this valuable tax deduction by providing the industry’s most defensible fertility valuation reports.
