Soil Nutrient Deductions let agricultural landowners claim the value of existing fertilizer nutrients in their soil as a tax-deductible asset. When you buy or inherit farmland, part of what you’re paying for is the fertility already in the ground. This deduction recognizes that value.

You may qualify if you: • Own or inherited farmland, ranchland, or timberland. • Have enough tax basis in the property to support the deduction. • Are either an active producer or a landowner leasing out the land.

It allows you to recover part of your land investment through tax savings while improving how you track and manage soil fertility.