How Soil Tax Guys Works: Our Process for Evaluating Excess Soil Fertility

One of the first questions we’re asked is, “How does the process work?”

The answer is straightforward. Our role is to provide an independent, science-based opinion of the value of excess soil fertility that existed when agricultural land changed ownership. Your CPA then determines the appropriate tax treatment based on your individual circumstances.

Here’s how the process works.

Step 1: You Purchase Agricultural Land

Everything begins with the acquisition of a farm.

When you purchase farmland, you’re buying more than just acres. You’re also acquiring the nutrients already present in the soil. Those nutrients may represent a valuable asset, but the only way to determine their value is through a proper agronomic evaluation.

Step 2: We Gather the Soil Data

Every opinion starts with data.

We either collect soil samples using accepted agronomic sampling procedures, or we review recent soil test results provided by the client from a reputable, accredited laboratory.

Our analysis is based on the actual nutrient levels found on your farm, not assumptions or generalized averages.

Step 3: We Provide a Preliminary Estimate

Before recommending a comprehensive evaluation, we prepare a preliminary estimate of the potential excess soil fertility value on a per-acre basis at no charge.

Our goal is simple: determine whether the opportunity is significant enough to justify moving forward.

If the estimated value isn’t meaningful, we’ll tell you.

If it is, we’ll recommend proceeding with a comprehensive evaluation.

Step 4: We Prepare an Excess Soil Fertility Opinion of Value

If you choose to move forward, we complete a detailed agronomic analysis of the property.

Our report includes soil test interpretation, state and county specific fertility targets, nutrient inventory calculations, current replacement costs, and complete supporting calculations.

We believe transparency matters. Every conclusion in our report is supported by data and clearly documented methodology.

Step 5: Your CPA Applies the Tax Treatment

Once the report is complete, we provide it to you and, if requested, work directly with your CPA.

Our responsibility is to determine the agronomic value of the excess soil fertility.

Your CPA’s responsibility is to determine how that information is applied to your tax return based
on your specific facts and applicable tax law.

By keeping each professional focused on their area of expertise, clients receive a transparent, defensible evaluation backed by agronomic science and supported by their tax advisor.

At Soil Tax Guys, we turn dirt into deductions.

Alec Bean

Alec Bean is the CEO of Soil Tax Guys, he is a Certified Crop Advisor and has spent his entire career in Agronomic Consulting relating to soil fertility. He can be reached at [email protected] to discuss how Soil Fertility Tax Deductions fit into your land buying strategy.