Section 180 of the Internal Revenue Code allows landowners to deduct the value of existing soil nutrients when agricultural land is purchased or inherited. These nutrients are considered a wasting asset, similar to depreciation, and may be deducted once they are properly documented and allocated.

Generally, any land that has that has been purchased or inherited within the last 15 years and is currently used—or intended to be used—for active agricultural production purposes, including cropland, ranchland, pasture, or timberland.

While results vary based on specific soil composition and nutrient density, clients typically see a soil nutrition valuation ranging from $500 to $2,500 per acre.

Raider Soil Solutions manages the entire technical and documentation process, including:

• Precision field mapping
• Physical soil sample collection
• Laboratory nutrient analysis
• Soil nutrient valuation calculations
• A CPA-ready final report designed for tax filing and record retention

We work alongside your CPA to ensure the documentation aligns with tax reporting requirements.

Our comprehensive soil depletion analysis is billed at a flat rate of $38 per acre. These fees are also tax deductible, bringing your net out of pocket expense to around $25 per acre.

Delivery times are subject to seasonal demand; however, most comprehensive reports are finalized and delivered within 30 days of the signed contract date.

Let’s say an ag producer purchased land for $3,500 per acre. Let’s also assume that after hiring Raider Soil Solutions, we determine that there is $1,500 per acre of nutrition value in the soil. That would allow the purchaser a deduction of $1,500 per acre. The net tax benefit would be as follows:

$1,500 per acre X 35% (20% Federal income tax rate + 15% Self-employment tax rate) = Net tax benefit of $525 per acre.

That would bring the out-of-pocket expense of buying the land below $3,000, without changing how the land is farmed.

(Actual tax benefits vary by taxpayer—consult your CPA for exact figures.)

To begin your assessment, please contact us at [email protected] or reach out to one of our experienced team members. We will provide a complete onboarding package outlining required documentation, timelines, and next steps.