Every year, 2.5 percent of America’s farmland (including land used to produce crops and timber, plus pasture) changes hands through sale or inheritance — translating to roughly 20-22 million acres annually*. For growers navigating those transactions, the focus is often on land value, productivity, and operational integration. What’s often overlooked? The soil beneath those acres may hold an immediate, tangible financial benefit in the form of a little-known tax deduction under Section 180 of the IRS code.
Advanced Agrilytics’ new Residual Fertility Valuation Program helps landowners unlock this opportunity with confidence and credibility. It reflects our ongoing mission: helping growers maximize the profit potential of every acre – not just through our unique, predictive agronomy approach, but also by bringing growers ideas and solutions to help them extract more ROI from their land.
Much-Needed Relief for Growers
With commodity markets under pressure and operating margins tight, limiting tax liability is welcome relief for crop producers. In many situations, Section 180 allows farmers to deduct the value of residual soil nutrients present in the soil at the time of farmland purchase, turning existing fertility into a potential financial asset with the right documentation.
While the code itself is decades old, awareness of this tax deduction opportunity remains low, and documentation requirements can be complex. That’s where Advanced Agrilytics’ agronomic expertise and our proprietary TerraFraming™ platform offer a distinct advantage.
Our approach is rooted in our team’s combined 150 years of soil science expertise, more than $25 million in R&D investment, and a purpose-built platform for precise, field-level insights. Simply put: No one is better positioned to help growers turn residual fertility into a financial asset.
Why Is a Residual Fertility Valuation Report Important?
The value of residual nutrients already present in the soil at the time of farmland acquisition is often overlooked — but it can represent a significant financial opportunity when properly documented. Advanced Agrilytics’ Residual Fertility Valuation Program is specifically designed to help landowners capture this opportunity.
Our report provides an independent, defensible, and repeatable valuation of the residual macro- and micronutrients present in the soil at the time of purchase. This detailed analysis translates complex soil data into a clear, credible report that CPAs can use to support a Section 180 tax deduction claim.
Rather than focusing on restoration expenses or future fertilizer applications, this program is focused solely on quantifying the existing fertility already in the soil at acquisition. That makes it a powerful tool for growers and their advisors seeking to unlock tax advantages tied to recent land transactions.
Who qualifies? Landowners actively engaged in farming with a profit motive — including those who’ve purchased farmland in recent years or inherited land — may be eligible.
Why Soil Fertility is a Hidden Asset
In these tough economic times, crop producers need to take advantage of every financial opportunity to get the most ROI out of their land. Through TerraFraming’s spatial analysis, we analyze nutrient concentrations at a sub-acre level, turning soil data into actionable valuation. The resulting Residual Fertility Valuation Report provides:
- A detailed nutrient inventory of macro- and micronutrients present in the soil
- A valuation summary of those nutrients, aligned with market fertilizer pricing
- Geospatial maps identifying concentrations and variability across the field
- Clear documentation to support IRS Section 180 compliance
This report transforms pre-existing fertility into a verifiable asset growers can use to support their CPA’s filing — or to strengthen negotiations in land valuations, financing, or succession planning.
The Advanced Agrilytics Difference
Other organizations offer soil reports. But none can match Advanced Agrilytics for credibility, precision, or agronomic depth. Our unique value stems from three key differentiators:
1. Unmatched Agronomic Credibility: With 16 proprietary patents (and four more pending), our methodology isn’t speculative. It’s science-backed, proven, and designed to withstand IRS scrutiny.
2. Simplicity for Growers: We handle the complexity, from field boundaries and data analysis to formatting and compliance. In many cases, there’s no need for additional sampling if recent soil data exists. Our team ensures audit-ready documentation, so growers and their CPAs can move forward with confidence.
3. Defensible Reporting:
Our reports are specifically crafted to align with IRS guidelines, offering the clarity and rigor tax professionals need. This isn’t just about claiming a deduction; it’s about ensuring it complies with IRS guidelines and can withstand an auditor’s scrutiny if needed.
Turning Awareness Into Action
For our team, the Residual Fertility Valuation Program is an extension of our central philosophy – find creative, workable solutions to help growers thrive in a challenging ag economy. Already, we’ve seen tens of thousands of acres identified for potential Section 180 deductions across our territories, representing real dollars and meaningful impact.
Even better, this opportunity isn’t confined to corn and soybean acres alone. It extends to grazing land, timberland, and other agricultural properties. Wherever there’s soil, there’s potential.
As Advanced Agrilytics’ CEO Kenny Avery noted recently, “Our job has always been to maximize profitability on every acre. We do that first through our agronomic expertise, and now through exciting opportunities such Section 180. The combination strengthens our relationships and reinforces our position as trusted advisors.”
Start the Conversation
Exploring eligibility is simple. Interested growers can start by filling out our interest form. From there, we assess readiness, gather necessary data, and deliver a clear, defensible report. One other key note: the cost of the Residual Fertility Valuation Report is tax-deductible.
Given that 2.5 percent of U.S. farmland changes hands every year, this is not a one-time opportunity; it’s an ongoing service we can provide to both new and existing customers, year after year.
In an era where margins are tight and opportunities hard-won, this program offers something rare: a clear path to uncovering hidden value already beneath growers’ feet.
*Figures based on data from the USDA 2022 Census of Agriculture.
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