Depletion is real.
So is the deduction.

If your farmland draws from a depleting aquifer, the IRS may allow you to deduct the lost water as a depreciable asset.

This groundwater depletion deduction has existed for decades — but most farmers have never claimed it.

At Farm Advisors, we help landowners unlock this powerful farm tax deduction using scientific modeling and IRS-supported methodology.

See if Your Land Qualifies

Image of irrigation of farmland over the Ogallala Aquifer

Why It Matters

You may already qualify for a tax deduction on the water beneath your land.

When water levels decline under your irrigated fields, the IRS allows you to claim that lost value — similar to depreciation for a well or tractor. But most farmers and CPAs don’t realize it applies to groundwater.

At Farm Advisors, we:

Identify whether your land qualifies under IRS guidelines
Calculate the depletion using public well data and geologic modeling
Deliver a parcel-level valuation report for your CPA to file with confidence

For many landowners, this means unlocking real tax savings from land you already own — with no change to your operations.

How It Works

We measure the decline in your aquifer — and convert it into a valid farm deduction.

Initial Intake
You share key land details and ownership history — or we help gather them.
Aquifer Decline Analysis
We use well data, water maps, and rock depth records to estimate depletion.
Scientific Valuation
We apply IRS-approved cost depletion methods to quantify the deduction.
Report Delivered
You receive an audit-ready valuation report to support your deduction.

See Our Full Water Depletion Valuation Process

Why Farm Advisors?

Science-Backed Methodology

We apply science-backed methods using well data, aquifer thickness maps, and groundwater trends to estimate depletion. Our modeling delivers precise, parcel-specific results.
Audit-Ready Documentation

Each valuation is designed specifically to support this tax deduction. Reports are structured for review by CPAs and the IRS.
Support for Your CPA or Tax Advisor

We prepare detailed documentation that your CPA or tax attorney can use to file the deduction properly.
Coverage Over the Entire Ogallala Aquifer

We serve irrigated farms across all eight states over the Ogallala Aquifer: Texas, New Mexico, Oklahoma, Kansas, Colorado, Nebraska, Wyoming, and South Dakota.