Other People's Money
Back to library
Agriculture, Land & Timber

§175 Soil & Water Conservation Deduction

Farmers deduct up to 25% of gross farm income for conservation expenses (typically capitalized).

Overview

IRC §175 lets farmers deduct expenses for soil/water conservation, erosion prevention, endangered species recovery — expenses that would otherwise be capitalized. Cap: 25% of gross farm income; excess carries forward. Includes leveling, terracing, contour furrowing, drainage, tree planting, water conservation structures. Big win for regenerative-ag operations.

Best fit
Active farmersRanchers doing pasture improvementRegenerative-ag operations
Estimated impact
$20K–$200K/yr in accelerated deductions

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

More agriculture, land & timber strategies

See all Agriculture, Land & Timber strategies
OPM