Frequently asked questions
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What is a residual fertility report?
It documents the nutrients — phosphorus, potassium, lime, and others — that were present in your soil when you acquired the land, above the levels needed for normal crop production, and estimates their value. It gives your CPA the information needed to evaluate whether that value can be used for tax purposes.
What is Section 180?
Section 180 is a provision of the Internal Revenue Code that allows agricultural landowners to deduct certain expenditures related to soil fertility. Tax professionals may consider it, along with other provisions, when evaluating residual fertility present at the time land is acquired.
How much could residual fertility be worth?
It depends on your soil test levels, the number of tillable acres, and fertilizer prices in the year you acquired the land. Some farms carry substantial residual fertility and some carry very little — the analysis tells you which. We don’t promise a result; we document what the soil shows.
I inherited the land, or I don’t farm it myself. Could I still benefit?
Possibly. Inherited farmland, estate settlements, trust distributions, and land held by owners who rent it out can all be worth evaluating. Which tax provisions may apply depends on your situation, and your tax professional makes that determination.
When would a deduction be taken?
Timing is a decision for you and your CPA. The analysis is based on the nutrient values at the time you acquired the land. If you acquired it in an earlier year, it may still be worth a conversation with your tax professional.
What if I rented the land before I bought it?
Let us know — we record whether the land was rented prior to purchase so your CPA can take it into account, since fertilizer you applied as a renter may already have been deducted.
My soil wasn’t tested the year I bought the land. Is that a problem?
Not necessarily. We can often work from a soil test taken a few years before or after the acquisition by accounting for the nutrients removed by each harvested crop and the fertilizer applied in between.
What information will I need?
Your acquisition date, tillable acres, and soil test reports are the core. Crop, yield, and fertilizer records help when the soil test is from a different year than the acquisition.
Do I need a CPA?
Yes. OptimAg Consulting provides analysis and documentation, not tax, legal, or accounting advice. Your CPA or tax professional reviews the report and determines how it is used.
What does it cost?
Pricing is based on acres, and we’ll discuss it in our first conversation. If our analysis doesn’t find residual fertility value for you, there’s no charge.