10/23/2026
American Farm Bureau is encouraging farmers to fully understand the residual fertility tax deduction.
Under Section 180 of the Internal Revenue Code, farmers can claim deductions on fertilizer already present in soil when purchasing land, with potential write-offs of hundreds or thousands of dollars per acre. But the deduction lacks clear IRS guidance and could cost far more than budgeted if widely claimed nationwide. Farmers considering it should understand the risks, as improper claims could result in significant financial penalties.
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