Helping CPAs identify potential tax opportunities for agricultural landowners
Residual fertility may represent a valuable asset acquired with purchased or inherited farmland.
When agricultural property is purchased or inherited, existing fertility resulting from prior fertilizer, lime, and nutrient applications may warrant consideration by tax professionals evaluating treatment under applicable provisions of the Internal Revenue Code.
OptimAg Consulting provides residual fertility analysis, supporting documentation, and CPA-ready reporting designed to assist your review. Our role is to provide the data and documentation — not to provide tax advice or determine tax treatment.
Common client scenarios
- Farmland purchases
- Inherited farmland
- Estate settlements
- Trust distributions
- Family farm transitions
What OptimAg provides
- Soil fertility analysis
- Residual nutrient valuation
- CPA-ready reporting package
- Ongoing support during review
Relevant tax considerations
Depending on the taxpayer’s facts and circumstances, tax professionals may evaluate residual fertility under Sections 167, 168, 180, 611, or other applicable provisions of the Internal Revenue Code. Tax treatment remains the responsibility of the taxpayer and their tax advisor.
What OptimAg does not do
- Provide tax advice
- Determine tax treatment
- Prepare tax returns
- Replace professional judgment
- Independent documentation
- Clear methodology
- Professional reporting
- Responsive communication
- Farmer-focused expertise
What’s in the report
- Whole-farm summary and a separate page for each field
- Soil test level, valuation product, and fair market value for each nutrient
- Excess nutrients (lbs/acre) and their value per acre and in total
- Levels as of the acquisition date — adjusted for crop removal and fertilizer applied when the soil test is from a different year
- An illustrative 60-30-10 deduction schedule, clearly labeled as an example
- The laboratory’s soil test reports
A simple 3-step process
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1
Landowner consultation
Review the property, acquisition history, and potential fit.
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2
Soil data & analysis
Collect available soil data and quantify residual nutrient value.
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3
CPA report delivery
Deliver clear documentation for the tax professional’s independent review.